nforth about to close thinking of backing out

I think over 50K is a lot of money to lose. If I were you I'd go ahead with it if the monthly mortgage payment would be easy and affordable and you plan to stay there for a while.

see other threads on backing out

would knocking off a few extra k make it easier? the developer might prefer, at this point, to keep the sale rather than keep your deposit. you might be able to get them to knock some $ off, or cover closing costs at least? doesn't hurt to ask- worst they can say is no. talk to your agent, or lawyer.

If youre purchasing this place to be your home and not looking at it as just an investment then you should consider keeping it. Why just throw away 50k? But of course it depends on if you can comfortably pay your mortgage and still have enough money for other things. 50k is probably 1 year of your mortgage payments. But if youre at the brink of just walking away then you should just talk to the developer to see if they can cut some of your costs. You have nothing to lose. If it helps any, we're offering $2000 for Nforth buyers. sunny_hong@countrywide.com

sunny,
what does that mean? "$2000 for nforth buyers"

$2000 for what? would this be off the mortgage. It does not seem like much. explain a little more shong.

We are offering a $2000 credit toward closing costs or rate buydown for those purchasing in Nforth. And yes, it might not be much for most people. But it might be a lot for some.

Uh, Shong, c'mon, you can do better than that....

why just for nforth?
or for other buildings in WB also?

isn't this what got Countrywide into trouble to begin with? chasing a market down?

2 grand off a condo is not a lot to anyboby spending this kind of cash in this market.
Chasing the market down? I dont understand, I thought the credit crisis, speculation(which the WB area is based on),job loss, the drying up of euro investment are chasing down the market. These are only a few of the things that worry me
Money is not cheap.
As for countrywide giving only to the lucky nforth buyers. Again $2000 is not cause for dancing in the streets. Nice try countrywide.

I never said we're giving $2000 so everybody should jump up and down with joy. Better than $0, right? Not much better but better. And no its not just for Nforth. Its actually for low to moderate income areas. And now since everyone is complaining... no soup for you!

j/k

Hello mefindhome,
i really understand what you are feeling,i also have a contract signed on this bulding and a deposit paid !!!!i haven't already closed
we need to join our forces ,have you an email,i would prefer to communicate privatly ,i have some ideas

fignar,

Please e-mail me: johnfrankemail@gmail.com

Thanks,
John

Compare the $50k loss to the expected loss on the apartment if you buy...
AND, you have to figure in cash.

Even if its a loser in terms of loss comparison, if its the only cash you have, and therefore the only way to buy.... perhaps buying now and taking a loss is better than not being about to buy for quite some time as you look to rebuild your down payment.

nyc10022: Please keep in mind. This building has a tax abatement. After 15 years, the taxes will be +/- 20k. It will be an impossible sell if the market doesn't go back up within the next 4-5 years.

Fignar,
my email is mefindhome@yahoo.com,
What do you got?

JohnFrank, why do you think taxes will be 20K? On a $600K unit, more like $8000/year.

Looks like 30 units in the building, 6 sales recorded, maybe 4 more coming, 14 active listings leaving 6 to 10 unlisted units. So about 20% sold. I would guess they're probably nervous.

(Or at least 20-30% sold. And $8000 in 2008 dollars.)

Unabated taxes are ridiculously high in the nForth for some reason. I was told the sponsor was filing with the Attorney General in an attempt to lower them.

So, did any of you back out? Looks like they've sold quite a few.

Does anyone know how (unabated) taxes are calculated? How/why would they be higher for nforth than other similar buildings?

JohnFrank, are you being sarcastic? They have only sold 6 out of 30 units!

the more 'green' the building (i.e. the more energy saver) the less tax you pay for a number of years.

tax in nfourth is low, like $50 a year or something for 15 yrs (I think).

Bud do what suits you best. Happy Holidays to ALL.

yes, and under NO circumstances seek 'advice' from brokers.
they're full of it, and they've just been exposed all over the place. nobody trusts them now.

djradon: According to http://thedevelopersgroup.com/buildings/building.aspx?buildingid=1150&, they've sold 13 units.

In Nforth, taxes are 8 dollars a month, until the 10th year. At that point, they go up 20% a year for 5 years until the 15th year, which will be about 22k/year.

I_want_to_buy: That's for sure. Talk about an occupation dedicated to scumbags.

If taxes are $8/mo (ie., $100/year), and go up 20% each year for 5 years, they'll en up being about $250/year. Unless my math is off...

I would definitely not trust the developers group's website more than streeteasy's "Recorded Sales" data.

djradon: They don't go up 20% from what they have been. They go up 20% of the full amount, which is about 22k/year.

Errr.... I think you're looking at the wrong unit. A few units have sold.

JohnFrank: of course, should've realized you meant going up 20% of the difference between abated and non-abated tax each year for five years. What's your source for the 22K/yr figure?

I was in contract there. I no longer am. I'm sure I could find the exact number in the paperwork, but it was up there.

To buy there now - I'd need to have my head examined.

John Frank, just curious... what was your reason for pulling out. I just viewed the property and I really liked the layouts of the one bedrooms.

Jesomer:

My thoughts:

1. The economy tanked. It's, in my opinion, getting a lot worse before it gets better.
2. I considered it a 'risk' area that won't break even as fast as Manhattan.
3. The tax abatement issue would make it difficult to sell in 4-5 years as I had originally planned.
4. The building doesn't have a large number of units sold. Risky, especially if the sponsors go bust.
5. Least importantly, the 'sales rep' was a prick, and I took some pleasure in knowing he wouldn't get his commission.
6. I figured I'd be able to get a better deal in Manhattan if I waited a bit. I really wanted to be in Manhattan anyway, but at the time I signed the contract, I couldn't get enough for my money.
7. I didn't know when it would be worth what I was paying for it.

I could probably keep going, but the above had me sold on bailing.

John Frank:

It seems as though your issues lie mostly with real estate market and the Williamsburg area. I think that this building really seems nice and doesn't fall into that category of out of place looking shiny and tacky new condos popping up all over Williamsburg. If you have any specific comments about the actual building I would really appreciate that.

I do agree with you that I'm sure the worst of the real estate crisis is not yet behind us, so yes I'm sure prices and rates will become even more desirable for the buyer.

I also am in the same boat as you, being that I would absolutely prefer Manhatten, but having a nice size apartment is very important to me and currently I am priced out of Manhatten unless I want a shoe box studio. I personally prefer a one bedroom in Williamsburg which seems to be a very cool area and a short commute to Manhatten.

Jesomer:

It was more the market than the area. I already knew the sacrifice I was making moving out of Manhattan.

But when the market tanked, the two combined; I couldn't take it.

I think the building is great. I love the look. I have no complaints about it at all. I could actually go on and on about all the things I liked about it.

But, I would have wanted to sell within 3-5 years. The way things are going, I don't think that would be possible.

And the tax abatement issue is frightening, to say the absolute least.

Why don't you wait and see what shows up in Manhattan? Williamsburg has too many new developments to sell now. Contracts have stopped. The future is unknown.

That ends my doom and gloom for this thread.

JohnFrank, I was in the same boat as you, concerned about the unabated taxes. I believe the numbers in the offering plan have been modified drastically for the better. I'm not sure how they came up with the initial estimated numbers but apparently they were just ridiculously high. Besides, taxes are set by the city, not by the developers so ultimately it's whatever they decide. And if you think about it, those numbers are just ridiculous and just totally out of whack relative to the rest of the city. But I agree with your assessment about the market, I think it's going to get worse before it gets better, but damn if it isn't a good time to look and make some offers. 30-yr fixed at 4.75% w/0 points ain't bad.

Since my post about four weeks ago, looks like 3 more sales recorded, so the building is at least 30% sold.

JohnFrank: According to the broker I'm talking to, unabated RE taxes are projected closer to $1000.

It could be. It was one of many risks, all of them mutually exclusive. Are you talking to one of their sales reps? Don't trust a thing they say. They're terrible, terrible people.

With the loss I took, I think after prices drop a bit more, I'll compensate for it by paying less in the future.

I learned a lot from the experience. What I learned will help me in the future.

JohnFrank, I couldn't agree more about the sales reps. They can be pretty awful. djradon, according to the developers group website, I think it's closer to 60% sold/signed. Don't know if it's been updated to include anyone who signed but backed out.

When I said $1000, I meant $1000/yr. If you could check your paperwork, I'd appreciate it... I'm scared of the wburg glut too, but would rather live here than Manhattan.

$1,000 a year? Unless things have changed a lot in the last few months, I don't know about that. I'll see what I can find.
fedup: A lot of the CS on their site has been CS for a long, long time. I wonder what is taking so long.

The risk in Williamsburg is just too big for me right now.

Did anyone find out the unabated tax yet? thanks.

I bought in N4th.I was very sceptical but could not back out anymore.I at least got a storage for free...
Can not complain.Building turns out nice. Nice people, some couples, some singles, surprisingly quiet, video doorman so we do not pay for doorman but have security.Location is great.
downside is no roof deck but a very large garden area in the back makes that ok

Developers Group site is not updated.
the last official letter to the owners is that over 60% are in closing...I know that at least 45-50% are occupied.
.Taxes are below 20$ a month , they put in an amendment that lowered the actual taxes drastically from the beginning, so for my info no 20K/year after abatement is done.
.
If anyone hears different let me know

Thanks for the info. I wish you and your building all the best.

Mafa, in the other NForth thread 3 hours ago, you said you "will go back to reconsider" and 1 hour later, you "could not back out anymore" and purchased? Without finding out what the unabated taxes are supposed to be? What, would you have forfeited your deposit at midnight?

Mafa- as djradon points out, there are some bizarre discrepancies between 2 posts that you made around the same time. For your reference, here's the other one. Can you explain?

Mafa
about 5 hours ago
ignore this person
report abuse Love the brick!
Decent spaces for an OK price...well what is OK these days...looked at the 1 bedroom units and thought they where pretty nice.simple, clean no fancy (and costly) amenities, a little gym, the digital doorman they ahve will def. keep the common charges low in this building and the building safe.
will go back to reconsider

one unit is back on the market !
How many will follow ?

Fignar: Did you end up bailing?

what is the deal? They took all off the market? Are they in foreclosure?

i don't think so .
There are 4 remaining units
The seller is doing a BBQ tonight in the backyard,you can go and tell us

If you do decide to close remember that you may have a solid balance sheet but your neighbors might not. It's a real wild card....

Buying right now in Williamsburg is suicide! I know $50K is a lot to walk away from, but many people, including myself, believe there's gonna be some severe price adjustment in the hood over the next months/years. Better lose $50K now than more than $150/$200K if you factor in the cost of the mortgage associated to the selling price.
That's an awful situation to be in right now, mate. I can't tell you what you should do , but i'm telling you what i would do.

if you buy to make a profit within the few years;you'd better go to the stock market or buy a R Raushenberg drawing.
But if you want to put a roof over your head,i still think that wburg is still a good option

johnfrank....did you ever buy?

jimstreeteasy,

Believe it or not, I did. I ended up buying in midtown manhattan in a luxury high rise. I found a place that needed some work. The kitchen had non-working appliances and needed to be gutted. The bathroom was dated, but functional. Walls and ceiling needed to be skim coated. Floors redone. Pretty much everything. But, temporarily livable.

So, I paid about 530/square foot. It's on a high floor. Great view of many prominent buildings.

Since then, I skimcoated all the walls. Taped. Did the ceiling. Removed the old floor. Removed the old walls. This coming week I'll be rebuilding everything.

But, to answer your question, yes, I bought elsewhere, and furthermore yes, getting out of that contract was the smartest (albeit somewhat expensive) decision of my life.

Sounds like you got a good deal. Very different from wmburg, to say the least. You're one of the few actual examples that have really walked away from a deposit (some have whined to the AG, but not sure how that is going)

thats a pretty good price you got for midtown. lux highrise...i think...good find

Yes, that was a good price, and great luck to have it all turn out well.
Filing with the A G. takes time to see if your deposit will be refunded.
Pulling out and losing so much money is fast and easy, if you can afford it.
Check the offering plan. Check the DOB to see if there are any violations on the building (both open violations and violations during building.) Check the record of the developer, see if he has a record at the A.G.
If you find anything, you may be able to use it to get your deposit back.
They would rather give you your deposit back, than to have you file a lawsuit for fraud against them.
That's a way to make use out of your deposit money.