Peter's Blog

In the current edition of Realtor  magazine, there is an article written by John E. Grippa. He says as home prices drop, so should property taxes.

After reading the article, all I kept thinking was that there seems to be something wrong with this concept. I don't mean that John E. Grippa is wrong; I mean there has to be something wrong with the way taxing jurisdictions create their budgets.

I was always under the impression that a taxing jurisdiction had a certain budget, a somewhat known and fixed obligation to its area. For example, they would add up all the costs of the services provided (schools, police, town, emergency, roads, water/sewer, etc) then they would tax according to those needs.

It seems to be just the opposite. It seems like most taxing jurisdictions throughout the US assess residential property based on market value. This means that they create their budget based on how much taxes they can collect. So if property values go up, they collect more. John E. Grippa said that as property values go down, we can appeal those taxes and have them reduced.

But if our taxes are reduced, are the services also reduced? Will garbage collection stop? Will the roads not be plowed in the winter? Will some other service stop or be reduced?

So my question is if taxes are reduced, will services be reduced? I can't imagine that the somewhat fixed services will be reduced. But in thinking this, what happened to the extra income when taxes were higher?

Going back to the time when home prices were increasing and taxes were increasing. Why were our taxes increased to begin with if the services provided were already being paid for? What did these tax jurisdictions do with all that extra money?

Besides the possibility of these tax jurisdictions having more money than they need, this becomes our burden in many ways. First, as property values increase, so do our taxes with no effort or control from us. But as property values decrease, we have to spend time and money to appeal those taxes. Secondly, higher taxes make homes less appealing and affordable to potential buyers which force us to appeal.

This doesn't seem fair to me; what are your thoughts?

53 South Washington Street Tarrytown, NY - Apt 1B

2 BR apartment on ground floor with eat-in kitchen and full bath in 7 family building.

Rent: $1,600 per month                   Security Deposit: $1,600
Available: November 1, 2008        Heat and hot water included

Great location, hardwood floors, full bathroom, laundry, seasonal river views, back yard use.









The apartment is in a 7 family building which is located centrally in the village of Tarrytown. Two blocks from Metro North RR, 1 block from Tarrytown Music Hall (Main St). The apartment is currently occupied but will be available for viewing.

Interested? call (914) 804-0037 or email: info@broadnbailey.com

The year was 1977, New York City, on the verge of bankruptcy, dreary, dark, crime was rampant. It was like a scene of Gotham City from "Batman." Real estate was so bad; the City of NY became the biggest landlord in the city as landlords abandoned their buildings, the city obligated to pick them up and keep them running. 

So how is it that now, just 30 years later, the NYC real estate market is hotter than ever and everywhere you turn you see the slogan "I Love NY". Even if you're not from NY, more than likely you've seen this or a similar slogan such as "I Love John" or "I Love TX". How did this "I Love . . . " craze begin?

We even have a group here on Active Rain called "I Love NY".

You must have wondered how or when this started. 

Last year, I've had the privilege of speaking with the creator of the "I Love NY" advertising campaign. It was a momentous time because it was now 30 years since he originally kicked off the campaign (in 1977). 

New York was running out of money and time. The New York State Tourism Department needed to do something to improve the image of NYC. With a very small budget, they hired a NYC advertising agency headed by Stan Dragotti and Charlie Moss. I had known Stan for several years and was most impressed by him having been married to supermodel Cheryl Tiegs. But when he explained to me how he created and developed the "I Love NY" ad campaign, I was totally mesmerized (sorry Cheryl). 

His idea was to incorporate all of the Broadway actors and have them sing "I love New York". The ad campaign was a success; the jingle became NY State's official song, the "I Love NY" slogan stuck. The TV commercial became one of the greatest commercials of all time. 

In less than 30 years, New York went from being a dark, crime ridden city ranked 8^th most desired city in the US to visit, now the #1 tourist destination in the world. I don't have to tell you that real estate values have reached skyscraper proportions and NYC is no longer the biggest landlord in the city. 

Stan Dragotti also went on to direct several movies including "Mr. Mom" starring Michael Keaton and "Love at First Bite" with George Hamilton as well as others. He also won the Tony Theater Award in 1978 for his "I love New York Broadway Show Tours." As for me, I am honored to know him and that he is of Albanian descent, which is how I got to know him in the first place.

Often I get asked "Pleasantville? Like the movie?" I reply "yes, only in color". With a population of just over 7,000 and an area of less than 2 square miles, Pleasantville is small yet highly desirable. Located in central Westchester, just 45 minutes from mid-town Manhattan. It's small size does not even warrant school bussing, making it a walking community. All children either walk or are dropped off at school. The Pleasantville schools always rank among the best schools in the country, but one of the things that impressed me most is that every morning (rain, shine, snow or sleet) the school superintendent was there to greet each and every child as they were dropped off. Though we only lived 2 blocks from the school, many times we would drive our children to school. Deep down inside, I think we did it because it felt so special dropping our children off and seeing the school superintendent welcoming them with a big smile and a warm greeting.

Each year (in May) this small and close-knit community celebrates Pleasantville Day. The day starts off with practically all village residents parading down Bedford Road, a street lined with old Victorian homes. We were fortunate enough to own and live in one of these old homes and always felt that our front porch was like holding front row seats to this and several other spectacular parades during the year (other parades included the Memorial Day parade, fireman's parade and ragamuffin parade). The parade would be greeted at Memorial Plaza (village center) with games, rides, music, clubs and local vendors. The day usually ends with a spectacular fireworks show or outdoor movie at the sports fields on Marble Ave.

These fields are also home to the annual Pleasantville Music Festival where performers like Joan Osborne, Graham Parker and other less known bands play. Attendance exceeds 6,000 making it like an overgrown family picnic to music.

On not so special occasions, local residents tend to frequent the local gourmet coffee shops, restaurants and even a 50's styled soda shop. In the evenings, one of my favorite things is movie going at the Jacob Burns Film Center - a fine arts film center where it's not uncommon to see or meet famous celebrities like George Clooney, Selma Hayek, Ron Howard, Glen Close and Woody Allen just to name a few. The film center has been so successful, that they are building a 26,000 square foot film production and educational center.

Many people say, "but the houses are so expensive and the taxes so high". I tell them, "if you want to buy a house, you're right. But if you want to buy a home, a community, a great place for your family, you can't afford not to live here". So whether it's the parades, the schools, commute to the city, local shops, music festival, theater or old Victorian homes, I'm sure you will love Pleasantville.

 Pleasantville, it's real and in color!

Pleasantville Links:

My mother is moving in with me, along with my wife and 3 children. Yes, there will be difficult times, but over-all I think it's the best thing. My children will be closer to their grandmother. My wife is very open and understanding with my mom, and as a result I think both will benefit. Me, well, it's my mom, the woman who gave me birth and raised me when I needed her most. How could I turn my back on her now?

This morning, feeling like she may be a burden to us, my mom said "I wish I had enough money to buy an apartment." For me, the money is not as much of a factor as not wanting my mom to live alone. I recently saw a great movie called the "Edge of Heaven" where one character says, "Only God should be privileged to live alone." I have plenty of apartments where my mom could live either rent-free or low rent. And even if I couldn't do it alone, then my 2 brothers would happily help.

It got me thinking about a tenant that I had in the past. I bought a building, and one of the tenants was a very old woman, living alone (I'll call her Eva). I remember her as being a very sweet old lady I would stop by and chat with her every now and then. She spoke so proudly of her late husband and how they emigrated from Poland. She spoke highly of her daughter "The doctor" and her son-in law "The Doctor." Oh! And of course the grandchildren! There were 2 of them, a boy and girl, both attending prestigious Ivy League Universities.

About 7 years later, in 2005, Eva passed away. Her daughter, son-in-law and grandchildren all gathered to collect her belongings. I had only met her daughter in the past, and as I watched them come and go for several days, I felt like I knew them through the stories I was told. I quickly realized that the bond was one sided, as they walked by me with barely a glance. To them, I was a stranger. On the verge of tears, I contemplated talking with the grandchildren (who were now post college) and telling them how proud their grandmother was of them. Only I couldn't because it seemed that they lost (or never had) a connection with their grandmother, so I didn't bother.

For years, I felt really sorry for Eva, but on that day I really felt sad for her grandchildren. They lost so many precious times with their grandmother that they will never be able to recover. How could I not take
my mother in? I owe it to my children and their grandmother. I admire the person responsible for creating the mother-daughter house, only I wish it were called grandmother-granddaughter instead.

You've heard the phrase, "It is better to give than it is to receive". This may be true depending on who you ask. Everyone we know falls under one of these two qualities. They are either "Givers" or "Takers".

So is your real estate agent a "Giver" or "Taker"? If you don't know, then you don't know your real estate agent well enough to work for you. Get to know your agent. Find out if she is a "Giver" or "Taker".

Why is it important to know this and when your real estate agent should be a "Giver" and when should she be a "Taker"?

If you are looking to buy a house, your realtor should be a Giver. Why? Because Buyer's Agents are Givers. I say this, because a realtor, who wants to help someone buy a home, truly gets satisfaction in helping the buyer. This is the person who will agree that it is better to give than it is to receive.

The Giver is the person you want representing you as a Buyer's Agent.

Now that we know that a "Giver" is someone who has your best interest in mind, why on earth would you use a real estate agent who is a "Taker"? Well, if a buyer's agent is a "Giver", then conversely, a seller's agent is a "Taker".

A seller's agent uses their Taker qualities to sell your home because deep down inside, they need to get the best and highest price. Yes, they are in contract with you to do this, but their satisfaction comes from selling the house without regard to the buyer or seller. As a result, you (the seller) just happen to be the beneficiary of a Seller's Agent who is a Taker.

The Taker is the person you want selling your home.

Sometimes people say "rent controlled" but actually MEAN rent stabilized . . . do you know the difference?

There is a difference between rent control and rent stabilization, but the term "rent regulated" encompasses both rent controlled and rent stabilized units. The Rent Guidelines Board has the responsibility for setting rent adjustments for rent stabilized apartments, while the NYS DHCR has jurisdiction over rent controlled apartments.

DHCR - Division of Housing and Community Renewal

Rent Control:

The rent control program generally applies to residential buildings constructed before February 1947 in municipalities that have not declared an end to the postwar rental housing emergency. A total of 51 municipalities have rent control, including New York City, Albany, Buffalo and various cities, towns, and villages in Albany, Erie, Nassau, Rensselaer, Schenectady and Westchester counties.

For an apartment to be under rent control, the tenant (or their lawful successor such as a family member, spouse, or adult lifetime partner) must have been living in that apartment continuously since before July 1, 1971. When a rent controlled apartment becomes vacant, it either becomes rent stabilized, or, if it is in a building with fewer than six units, it is generally removed from regulation. 

An apartment in a one- or two-family house must have a tenant in continuous occupancy since April 1, 1953 in order to be subject to rent control. Once it is vacated after that date, it is no longer subject to regulation. Previously controlled apartments may have been decontrolled on various other grounds. On rare occasion, a decontrolled apartment is ordered back under rent control as a penalty for certain violations of the rent laws.

Rent Stabilization:

In NYC, rent stabilized apartments are those apartments in buildings of six or more units built between February 1, 1947 and January 1, 1974.

Tenants in buildings of six or more units built before February 1, 1947, who moved in after June 30, 1971 are also covered by rent stabilization.

A third category of rent stabilized apartments covers buildings with three or more apartments constructed or extensively renovated since 1974 with special tax benefits. Generally, these buildings are stabilized only while the tax benefits continue.

 

Additional information can be found in the NYC Rent Guidelines Board website.

                                             for 10/1/2008 to 9/30/09

On June 26, 2008 The Rent Guidelines Board of Westchester County approved the following increases for leases renewed during the upcoming period of 10/01/2008 - 9/30/2009:

1-year Lease term:  4.5%

2-year Lease term:  6.5%

And for those apts where no heat/hot water is provided by Landlords:

1-year Lease term:  3.6%

2-year Lease term:  5.2%

A minimum increase of $45.00 per month was approved for either the 1 or the 2-year lease term

   -The Vacancy Allowance as stated in the Rent Regulatory Reform Act of 1997 continues operative:

20% for a 2-year Lease

19% for a 1-year lease

Where a unit was occupied for 8 years or more, an additional increase of 0.6% per year is allowed, i.e. a unit vacating after 10-year occupancy can be increased 26%: 

20% + (0.6% X 10 years) = 26%

Information provided by Jerry Houlihan, Chairman, Apartment Owners Advisory Council of Westchester County (AOAC)

If you build homes for a living, would you be renting/living in an apartment? So how is this different from realtors who help people buy homes, while they themselves are renting an apartment?

I know buying a home is no easy task, especially in some geographic areas. To top it off, the real estate market is slow, which means less money for realtors.

You have to learn, understand and sometimes get creative. The more difficult it is to buy a home or investment property, the more creative you have to get.  I'm on my third home in Westchester County and the only time I used my own money for a down payment is when I bought my first one back in 1991, which I put down $10,000.

I'm not going to bore you with the details of how I did this, but what's important to know is that I had to get creative in order to do this. For anyone who wants the details, please email me. I've since bought and sold many properties ranging from single unit condo's to a 28 unit multi-family property. Yes, there was quite a bit of creativeness going on with these properties as well.

The end result is that I have extensive experience in buying and selling properties, not just from a realtor's perspective but from a personal perspective. Now for the past year, I am an independent licensed real estate broker in New York State. Do you think I can help people buy homes and investment properties? Buyers that I work with know my experience and history, how do you think it makes them feel?

How do you want your clients to see you?