Presale Peoposals

They certainly don't get much traffic.

Thank you posting the link. Guess they want to get a look when some one does a big reno (I do not think if costs them more than a 2-3k to estimate as they probably have a good template and the estimates are not binding). In my opinion, it is still viable but depends on the price they charge. If they provide full design built service with the owner having to just show up for an hour every week and make decisions (they do the coop approvals, dob approvals and bring the finish choice to the owner, order all materials, provide a schedule and progress; deal with whims and fancies of some one rich and their family - the last one is no easy task), they can charge a premium and I think they do. One townhouse every two years will keep them running (they probably make net minimum 20% post all expenses if they charged $5mm) and pay owner's salary. Every thing else is juice.

It seems they provide a valuable service to brokers and sellers by presenting properties in the best possible light in a professional way. That is worth something, maybe 2-3k. 300, would that price include permits and zoning approvals? Truly turn-key?

I am only sceptical because it's been said that in the current market there are now more options for buyers looking for turn-key homes. But if these design firms can just earn fees and possibly commissions, it might a a profitable business.

I would think they truly do turnkey plus the owner has to meet once a week during design phase and make decisions. Primer may have more color.

Manhattan is full of masters of the universe. They will pay but they demand perfection and need some one who can manage their ego and conflicting demands of their spouse. That is really why a good design build can charge a premium and partially why Manhattan renos are so expensive.

Well the properties need gut reno are trading (not listed) much cheaper relative to finished right now. I am estimating at least $500k per sq ft for a gut reno of an apartment as a discount if not $600 per sq ft. Village may be a different story as there is very little new supply. Townhouse is more due to structural elements involved.

Agreed. It seems like anything a seller can do to show upside makes sense from a marketing perspective.

This is not the world I travel in but it seems to me that an apartment or townhouse with good "bones" plus a convincing reno plan will trade higher. For me, unless I was flipping, I would keep "as is" and wait for the next cycle to cash out, reno or not.

If someone is looking at higher end pre-war units I think there is a good chance that they are going to do a renovation almost no matter what shape it's in. The Masters of the universe category tend to want to put their own spin on stuff. There were a couple of supers in Tribeca who had a decent side business about a decade ago selling brand new SubZero refrigerators and Viking ranges from all the people who had bought in New conversations and immediately ripped out brand new kitchens to put in something better.

I don't begrudge the wealthy but they destroy so much value sometimes. And they still need tax cuts?

Nyc rich making more than $1mm earned income are still paying closer to 45-48 percent all in federal, city, state, social security and Medicare taxes. Marginal is more than 50 percent. They never got the net tax cut red states did. We are not even including real estate taxes which keep going up fast.

Socialist NYC is only sustained by the very rich living here. So more rich are welcome. Just keep on paying those ridiculous new development real estate taxes. We need them to fund the budget.

No way average NYer earning $1 million in total income is paying an effective tax rate of 45-48%. No way. If they did, they should fire their accountant. And they pay the same social security tax as someone making $128,700.

Anyway, all I am saying is that if a person is perfectly willing to toss out brand new apartment finishes because it doesn't exactly suit their tastes, they can't need a tax cut that badly.

I am speaking factually. That is the percentage of total income which you do not see before you even pay real estate taxes.

I would love to see the support for your assertion. Although I admit I do not know the effective tax rate for state and local income tax, I thought the effective federal rate was around 25%? So what can it be for S&L? 6-7%? And something like 40% of top bracket income from interest, dividends, etc. which is taxed at half the nominal rate.

Again, if the wealthy are getting squeezed so much, why do they waste so much of their money on so many frivolous things?

Ximon, Just play with any tax software (try tax act no charge) without actually filing and hopefully that may get the socialist out of you. Just remember the tax software do not count social security and Medicare as taxes as they are deducted by employer. Effective federal tax of 25 percent in your dreams if you have more than $1mm earned income. State and local well north of 10 percent. Medicare applicable to all wages. Remember federal deduction for state and local is limited.

Ximon, Just play with any tax software (try tax act no charge) without actually filing and hopefully that may get the socialist out of you. Just remember the tax software do not count social security and Medicare as taxes as they are deducted by employer. Effective federal tax of 25 percent in your dreams if you have more than $1mm earned income. State and local well north of 10 percent. Medicare applicable to all wages. Remember federal deduction for state and local is limited.

Just city will be north of 3.7 percent.
https://www.tax.ny.gov/pdf/current_forms/it/nyc_tax_rate_schedule.pdf

So much for your 6-7 percent state and local.

Your link shows the nominal rate not the effective rate. Are you sure you have support for your assumptions?

This is an old chart but it shows the effective federal tax rate including payroll taxes for 2007 of less than 21% for the top 10%.

https://archive.nytimes.com/www.nytimes.com/interactive/2012/01/18/us/effective-income-tax-rates.html?_r%253D0

And you haven't answered the second part of my question.

I do not care about some one spending the money they earnerd after paying whatever taxes are due the way they want including waste. It is their money.

Perhaps you are just a free loader and rich hater who refused to see facts and uses 2012 article. Why do not use your spreadsheet and calculate the average nyc rate? Pretty easy. Use standard deduction for nys. There are very few other deductions at $1mm income.

And I said Earned income $1mm.

I also do not care how much money people make or how they spend their money as long as they spare me their feelings of self-entitlement and superiority.

Why would I take the time to engage in your exercise? I simply asked for the source of your statements and you refused.

Please be kind enough to not mock me. I am far from a freeloader and far from poor. Have I been so rude to you?

I know you are not poor given your ownership of a condo or other real estate but do your calculations for 1mm earned income in any tax calculator and thank the rich for supporting nyc/nys tax base. You really should take the time to do the tax exercise to get your facts straight. You are being terribly rude to all the high wage earning people in nyc making $1mm or so by saying they pay 25 percent in federal and may be 6-7 percent in state and local.