Example: You have two condo's (on Cookman & waterfront) 4sale at $600,000 and assume each $100,000 x 6% = $6,000/12= $500/month x 6 = $3,000/month interest only.
Assume realty tax of $15,000/year; Fishman's unit with its 65% abatement will pay $5,250 while the Cookman unit pays $15,000. The difference effectively subsides or moves forward 10 years of price accrual due to the difference, which at the 6% mortgage rate could carry $162,500 of purchase price. All other things being equal, it's safe to say that a price differential approaching that subsidized amount will occur, greater in the early years, declining during the 10 years with a likely price drop relative to the rest of the market at the end. At that point the city will continue to pay for this abatement due to falling appraisals. Just another nifty feature council swallowed. Skip Bernstein --- In AsburyPark@yahoogroups.com, Allan Peterson <[EMAIL PROTECTED]> wrote: > > I can understand the tax abatement however; maybe my view is lacking information. The city offered the abatement so the developer would have an incentive to fill the units. Up until recently, wasn't the city receiving none or reduced taxes on this property? With all these units going into a block the city, even with the abatement, will be receiving more revenue than before. Plus when you have the people here, the local economy will benefit etc. Trust me I am not taking sides with the developer, I am raising a question. If a 200 unit building is completed and left empty, it is not going to help the town much. Let's face it; Asbury still has a lot of nastiness in it. These new units are going to be on the high end. People need to be convinced that the town is changing and if there is a demand for these units it, will only help us property owners even more. I do see a downside to this as well. My guess is city services like police, fire, etc can be covered in the reduced tax. > Again my guess is the city was not receiving much from this land for the past 15 years. My worry is with the schools. More people equal more kids. It takes big $$$ to build schools. I read someplace that they figure it would be a 50/50 split of people who use their new place year round as compared to weekends. Maybe the town took this all into consideration. Am I missing something here? > > > [EMAIL PROTECTED] wrote:That some 20 developers tried to get into Asbury and only corruption kept them out. That Terry Weldon is a crook and he orchestrated the sale of the tax liens to one entity - Sass/Fishman. That people work to preserve buildings because ordinary developers always build something worse. That the tax abatements will increase our taxes by 50% for about 10 years. That old buildings (even ugly old buildings) bring people who spend money to town. That Fishman is just tax lien seller and shouldn't be in control of any development anywhere. That we, the citizens of the City, are getting ripped off by a developer and our own attorney and will pay for it for a long, long time. etc. > > > --------------------------------- > Yahoo! Groups Links > > To visit your group on the web, go to: > http://groups.yahoo.com/group/AsburyPark/ > > To unsubscribe from this group, send an email to: > [EMAIL PROTECTED] > > Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service. > > > > > --------------------------------- > Do you Yahoo!? > Yahoo! Mail - 250MB free storage. Do more. Manage less. Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/AsburyPark/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
