Geography Lesson

Posted on March 1, 2014 by grim

Can’t seem to find NJ anymore, can someone help?

(click to enlarge)

This entry was posted in Economics, Foreclosures, New Jersey Real Estate, Politics. Bookmark the permalink.

68 Responses to Geography Lesson

grim says:

March 1, 2014 at 6:49 am

Looks like I’m dead on with this one from a few weeks ago. We’re now almost just shy of tied, we’ll easily eclipse Florida and take the #1 position next month.

Grim says:
January 29, 2014 at 8:21 am

I predict that in the next month or two – NJ will overtake Florida and lead the nation in the percentage of homes in foreclosure. We will have the spotlight.

The concerted effort to clog the NJ foreclosure pipeline continues.
Fast Eddie says:

March 1, 2014 at 7:18 am

Except for the haughty towns, which were insulated because everyone is prestigious, right? Because we all know that everyone in Haughyville turns a profit regardless of when they bought. No bubble there. No underwater owners there. Never had it, never will. The prices there are warranted because a realtor once told me so.
Fast Eddie says:

March 1, 2014 at 7:21 am

Except for this one that sold for 1.2 mil in 2007 and is now asking below that price 7 years later:

http://www.trulia.com/property/3143245177-60-Sherwood-Rd-Ridgewood-NJ-07450
30 year realtor says:

March 1, 2014 at 7:24 am

From where I stand the pace of properties completing sheriff sale is picking up rapidly in North Jersey. It will take years to clear the backlog, but the process finally appears to be underway. By The Fall of this year the number of REO listings will be clearly noticeable for those who follow real estate.
Fast Eddie says:

March 1, 2014 at 7:25 am

Here’s a nice starter home for the couple that has $90,000 laying around to qualify to buy this (ahem…) exquisite house. Well, what the f.uck do you expect? Do you want a haughty address or don’t you?

http://www.trulia.com/property/3141643756-697-Newcomb-Rd-Ridgewood-NJ-07450#photo-1
Fast Eddie says:

March 1, 2014 at 7:26 am

30 year,

Thank G0d the prestigious crowd is bleeding wealth and are insulated!
Fast Eddie says:

March 1, 2014 at 7:31 am

Dog sh1t on a main street. They got b@lls asking $620,000 for this thing with nothing done. I could describe the scent of this hole just by looking at the pictures. Everything is vintage late 70s décor and I fathom a bottle of Fantastic hasn’t been used since then as well.

http://www.trulia.com/property/3132963979-330-E-Glen-Ave-Ridgewood-NJ-07450#photo-1
Fast Eddie says:

March 1, 2014 at 7:35 am

Bought for 725K a few months ago and now asking 1.59 million after a renovation. G0d only knows what corners were sliced and what line of bullsh1t the sellers are pulling. And it sold for 190K in 2012. Sure, bring the checkbook, kids.

http://www.trulia.com/property/3083641812-184-Beechwood-Rd-Ridgewood-NJ-07450#photo-9
30 year realtor says:

March 1, 2014 at 7:37 am

The new REO assign to me in Livingston this week is a perfect example of the Haughtyville attitude. My first task is to occupancy check the property. I use 1 1/2 inch wide brightly colored tape and post a large notice indicating the property has been foreclosed. My cell phone number and name are on the notice. I tape the notice to the front door and tape the door shut so I can tell if someone has entered the property should I not receive a call.

Former mortgagor returns home at 10:00 PM and calls my cell phone. I am asleep on the living room sofa. In a sleeepy haze I answer the phone, hi this is Steve. The voice on the other end of the phone is yelling at me. Why did you post that notice on my door?!!! You have embarrassed me! My neighbors could read that from the street!
Fast Eddie says:

March 1, 2014 at 7:38 am

Started at 989K in the Fall; currently at 898K. When I see vaulted ceilings, I want to do two things: 1) v0mit and 2) run the other way.

http://www.trulia.com/property/3130766619-53-N-Monroe-St-Ridgewood-NJ-07450#priceHistory
grim says:

March 1, 2014 at 7:43 am

5 – During the bubble we were told nothing would ever again sell in Ridgewood with a 4-handle, and now, it’s relatively easy to find a fixer with a 3-handle.
grim says:

March 1, 2014 at 7:47 am

9 – If we all chip in – any way we can buy you one of those air-powered dancing men with the words “Just Foreclosed!” on his chest?

Something like this:

http://www.onebigsign.com/page_airdancers.html

That doesn’t violate any clause, does it? I’d be a shame if it did.
Fast Eddie says:

March 1, 2014 at 7:47 am

Sold for $580,000 seven years ago, currently at $558,000. Now multiply this by how many others in the same situation? How do you measure it? What metric do you use? You can’t. And that’s why people like Bystander and myself and anyone that can see the forest from the line of sh1t, refuses to bail out some stup1d f.uck because they failed at making proper financial decisions.

http://www.trulia.com/property/3028850221-10-Hickory-Ln-Waldwick-NJ-07463#photo-1
Fast Eddie says:

March 1, 2014 at 7:50 am

30 year realtor [9],

Put a huge sign on the front door that says, “F.uck You, Pay Me!”
Fast Eddie says:

March 1, 2014 at 7:51 am

grim,

Somewhere around 2007, I had one realtor tell me that Ridgewood is bleeding wealth and another one tell me that Ridgewood “expects” a certain type of buyer.
30 year realtor says:

March 1, 2014 at 7:54 am

15 – Properties are assigned to me while still in the 10 day redemption period, usually the day following the sheriff sale. Without fail the former mortgagor tells me, I have been in touch with the bank and have this all worked out. They always seem to be shocked that the sale has taken place.
30 year realtor says:

March 1, 2014 at 7:55 am

Did you see the story in the Record about parents and business owners suing the Ridgewood school district because of the ban on lunch deliveries to the high school. Classic stuff!
Fast Eddie says:

March 1, 2014 at 8:08 am

30 year [17],

Muffin and Preston need their sushi! :) How dare they!
Fast Eddie says:

March 1, 2014 at 8:13 am

Speaking of Haughty: I was on the train yesterday and the guy sitting behind me was talking LOUDLY on the phone to his kids. This is the Main Line so I know he got on somewhere around Ho Ho Kus or Ridgewood.

“Carter, did you do your spelling words? Spell three words for me! I said do it, Carter! Put Jack-Jack on the phone! Jack-Jack, did you get your Karate clothes together for later? I said lay them out on the bed! Put your mother on the phone!”

Yes, this conversation went on and on all the way to Secaucus junction where he got off.
grim says:

March 1, 2014 at 8:19 am

13 – Based on my calculations of amortization and the refinanced mortgage in 2010, they appear to owe somewhere around $375,000 on the property.

It’s not currently owner occupied, it’s leased, the lease record has it at $2,950 per month.

The lease payment doesn’t cover the mortgage, but only barely so, if anything, the monthly outlay for additional PITI is only about $300 bucks.

Not a money maker, but frankly, doesn’t appear to be a distress situation at all.

Some might actually argue this isn’t a bad deal since the renter is essentially paying the owner to buy the house.

Granted, doesn’t take into account major unexpected repairs or loss of income due to vacancy, but I’ve seen situations significantly worse than this one.
grim says:

March 1, 2014 at 8:21 am

Heck if they really wanted, they could probably refinance and recast back out to 30 years and be break-even on the property on a monthly basis. Renter would essentially be paying 100% of the PITI, yes this includes 100% of the tax bill. Payback on the refi is probably less than 1 year.

Sorry but in this situation, it really seems like the renter is the one getting the shaft.
reinvestor101 says:

March 1, 2014 at 8:25 am

>> Fast Eddie says:
March 1, 2014 at 7:47 am

Sold for $580,000 seven years ago, currently at $558,000. Now multiply this by how many others in the same situation? How do you measure it? What metric do you use? You can’t. And that’s why people like Bystander and myself and anyone that can see the forest from the line of sh1t, refuses to bail out some stup1d f.uck because they failed at making proper financial decisions.

http://www.trulia.com/property/3028850221-10-Hickory-Ln-Waldwick-NJ-07463#photo-1<<

People like you are the damn reason this damn real estate market is mucked the hell up. You make me want to throw the hell up. Liberal real estate terrorists have think they have won the damn day here. This all goes back to their damn resentment of people like me making money flipping and these damn people conspired to upend the damn market. It ain't gonna work. Real estate will go the hell back up because they're not making any more of it.
grim says:

March 1, 2014 at 8:33 am

Started at 989K in the Fall; currently at 898K. When I see vaulted ceilings, I want to do two things: 1) v0mit and 2) run the other way.

Clearly you aren’t the 3) guy who just bought it. It’s UC.

Asking price was on the 2% trend line from the $640k purchase in pre-bubble 2000. Factoring in the remodel, you sure this was a bad price? I believe it was for sale, or sold, for $590,000 in 1992 (which seems to dispel the myth that these places were inexpensive in the past). This looks like a huge house, 3,500 square feet and 5br/3.5ba – this isn’t some shithole 3 bedroom split with 1200 square foot great room addition off the back. I know lots of folks that would love the interior detail (didn’t you hear? Coffered ceilings are the new crown molding). If the kitchen was nicer, I’d have sold pretty damn quick I think. Doesn’t hurt that it’s on a nice street surrounded by nice houses either.

Also interesting was this was only a 4% commission deal. If it sells at $850k, the lawyer will be sliding over a check for $465k at closing.
Michael says:

March 1, 2014 at 9:08 am

10- Eddie, are you familiar with this street location? I know Ridgewood well. You are smoking the crack if you think this is a bad price. I would beg to differ, I think it’s a great price if you want to live in one of the best neighborhoods in nj, or better yet, the U.S. Do yourself a favor and don’t look in Ridgewood, it’s obviously not the type of place for you. With the way you judge real estate prices and location, you will just give yourself a stroke by looking there. You will pay top dollar per sq ft in Ridgewood. You will not get a good deal, by your definition. If you are wealthy, and have no problem paying more per sq ft to be with other wealthy people, then the house prices in Ridgewood are fine and actually priced very well (hell, for Ridgewood, it’s a deal to get a house in this location for under a million). This is why the realtor told you back in 2007, that Ridgewood looks for a certain type of buyer. In 10 years, in 2024, you won’t be able to get a house in Ridgewood for under a million. In 2024, we will be riding high in the next bubble created by demand from a large demographic push.

“Started at 989K in the Fall; currently at 898K. When I see vaulted ceilings, I want to do two things: 1) v0mit and 2) run the other way.

http://www.trulia.com/property/3130766619-53-N-Monroe-St-Ridgewood-NJ-07450#priceHistory“
Michael says:

March 1, 2014 at 9:20 am

22- A little angry, but you are right. There are a lot of fast eddie’s out there looking to rip someone off in a real estate deal, by looking at real estate as if everything is 50% overpriced. Maybe he will get lucky, and someone will sell 50% below their asking price, and he will get that deal, where he raped the seller.

That’s the problem with these type. They have the money to qualify to purchase the house, but every house is overpriced unless they get that 50% unrealistic price drop. This mindset is keeping people that should be buying houses, from progressing towards a purchase. Hence, they are holding back the market, waiting for a super deal, that probably will never come. When the prices really start taking off, and it’s too late to get in on the current good prices, these fools will all jump in and start the march towards the next bubble.

You see Eddie, you think the sellers are ripping you off when it is the other way around, you want to rip off the seller in a haughty location. Problem is, people living in haughty locations are not stupid when it comes to real estate. They will just wait it out, instead of giving in to someone like you, trying to take advantage of the current conditions.

” People like you are the damn reason this damn real estate market is mucked the hell up. You make me want to throw the hell up. Liberal real estate terrorists have think they have won the damn day here. This all goes back to their damn resentment of people like me making money flipping and these damn people conspired to upend the damn market. It ain’t gonna work. Real estate will go the hell back up because they’re not making any more of it.”
Fast Eddie says:

March 1, 2014 at 9:23 am

Michael,

You’re delirious. You think I was born yesterday? You think I don’t know every town and street North of I-78? Don’t flatter yourself, ok? They’re all not wealthy, they were used as props to complete a transaction. Wanna buy a bridge? Why should I bailout some stu1pid b@stards financial f.uck up? The best neighborhood in the U.S.? Why? Because a bugaboo stroll around the duck pond qualifies?
Fast Eddie says:

March 1, 2014 at 9:26 am

Problem is, people living in haughty locations are not stupid when it comes to real estate.

What an asinine statement. Go tell that to Carter’s father [post # 19] who sounds like he’s going to have a heart attack from stress.
Fast Eddie says:

March 1, 2014 at 9:28 am

They have the money to qualify to purchase the house, but every house is overpriced unless they get that 50% unrealistic price drop.

The majority of sellers are not qualified. Not my problem. Made a bad purchase? F.uck you, pay me.
Michael says:

March 1, 2014 at 9:31 am

26- Then go buy in Irvington. You could buy the block for 500,000.

Stop looking in haughty towns, and claiming it’s overpriced. If I went to Irvington and showed them what a cape cod in Ridgewood goes for, they would think it’s a rip-off too. It doesn’t matter if the people in Ridgewood are one pay check away from doom, the point is that they live there and can currently afford it. That’s all that matters. Until then, it’s not overpriced, someone is willingly paying it. Someone that probably belongs there.
Fast Eddie says:

March 1, 2014 at 9:32 am

grim [23],

Original ask was 989K. What did it go under contract for? What was the price?
Fast Eddie says:

March 1, 2014 at 9:33 am

Someone that probably belongs there.

What does that mean?
Michael says:

March 1, 2014 at 9:37 am

31- It means exactly what it means. If you think the prices in Ridgewood are overpriced, you clearly don’t belong there. Someone who thinks the prices are justified, belongs there.

“Someone that probably belongs there.

What does that mean?”
Fast Eddie says:

March 1, 2014 at 10:10 am

Someone who thinks the prices are justified, belongs there.

When the prop has already convinced themselves they are going to buy, the deal is just about done. All that is needed is for someone to nudge them off the cliff.
Michael says:

March 1, 2014 at 10:20 am

Eddie, I’m seriously trying to help you. You can take it the wrong way, or take it for what it is worth. Sometimes people overthink, or only think a certain way, and I really think one of these might be your problem.

In 2003, I was trying my best to stop anyone from purchasing a house. They laughed at me, and called me an idiot. Maybe it was because I was 23, and they could not take a 23 year old serious about a subject such as real estate. I don’t know, but they laughed at me and thought I was a complete idiot. I told them that the % rise in houses was not normal or sustainable. Told them to be scared, if you can make money this fast, this easy.

Now I’m on the other side. In 2012 and 2013, I have advocated to anyone that will listen, to buy. I stated why already on this board. 2014 is still a good time to buy, but 2012 and 2013 were the times to buy to really get max benefits.

Maybe I’m lucky, like forest gumb, but so far, I have been on pt in my real estate purchases. Told you I bought in 99 and then again on dec 2011. Both times, seem to hit, that magic (around) 10 year mark in real estate, where you are buying low.

I’m telling you that, long term, any real estate purchased now, will put a huge smile on your face, if you sell 10 years from now in 2024/25. What’s going on in the world now doesn’t matter. All that matters, is that these current market conditions make for a crappy market leading to good pricing. When the market heats up, the pricing will take off, and so will your profit. Problem is, you have to tell your mind to think long term, and understand that in 10 years we will be in a selker’s market, stuck with too many buyers, and not enough sellers. Complete opposite of today. That’s all you need to know.
Michael says:

March 1, 2014 at 10:25 am

Case and point, real estate is all about timing. You bought R.E. in 88 and 2008, you think it’s the worst investment ever. You bought in 93 and you think it’s the greatest money maker ever.
Michael says:

March 1, 2014 at 10:28 am

FYI, Russia just approved legislation to use military force in the Ukraine. Looks like they are going to take it back or make sure their puppet is in power.
Michael says:

March 1, 2014 at 10:40 am

Can anyone bring up some graphs comparing R.E and stocks on the premise of market timing? I think the trend for both would follow the idea that biggest gains were made by purchases in the worst of times. When it’s hardest to pull the trigger, is the best time.

Still pissed that I missed out purchasing 30,000 worth of Sirius stock at .10 a pop in 2008 because I believed the stupid gloom, that the markets were finished, even though my logic was telling me their satellites were worth more than .10 a share. So believe the gloom, or realize what always happens, it somehow works out.
Fast Eddie says:

March 1, 2014 at 11:25 am

Eddie, I’m seriously trying to help you.

omg…
anon (the good one) says:

March 1, 2014 at 12:56 pm

@RBReich: Businesses create jobs only when customers have enough money to buy what’s offered. Real job killers are lousy jobs at lousy wages.
anon (the good one) says:

March 1, 2014 at 1:00 pm

if chifi is not around, I’ll have to repost this next week

@MotherJones: University of Chicago hires notorious Goldman Sachs fraudster to teach economics to undergrads http://t.co/PLdrkVTAcX
POS cape says:

March 1, 2014 at 1:03 pm

24

Monroe street, busy yellow line st. I never understood Ridgewood – high taxes and there seems to be a perpetual traffic jam every time I go, even during the week at non-rush hour. Difficult to park downtown. The surrounding towns are just as nice (Glen Rock, Ho-Ho-Kus) minus the hassle.
POS cape says:

March 1, 2014 at 1:18 pm

17

From the Record article:

“The suit claims the cancellation has led to an unnecessary hardship for parents “due to lack of satisfactory lunch choices,” ”

A bologna sandwich for Graydon? Are you out of your mind?
chicagofinance says:

March 1, 2014 at 3:16 pm

So ignorant it sucks all the oxygen out of the room. Ever consider that 2013-2014 maybe be the hottest market you will see for sellers for many years? Huge smile in 2024/25? Ever hear the cliche about owning a boat? The happiest two days for a boat owner are the days they buy and sell the boat.

Michael says:
March 1, 2014 at 10:20 am
I’m telling you that, long term, any real estate purchased now, will put a huge smile on your face, if you sell 10 years from now in 2024/25. What’s going on in the world now doesn’t matter. All that matters, is that these current market conditions make for a crappy market leading to good pricing. When the market heats up, the pricing will take off, and so will your profit. Problem is, you have to tell your mind to think long term, and understand that in 10 years we will be in a selker’s market, stuck with too many buyers, and not enough sellers. Complete opposite of today. That’s all you need to know.
chicagofinance says:

March 1, 2014 at 3:19 pm

Tourre has been a grad student pursuing his Phd for years there. What is he supposed to do, not teach? It is a rite of passage…..if you do not take sections, automatons such as you would be bellyaching about preferential treatment…….how about you think about the context before you lecture us on morality?
anon (the good one) says:

March 1, 2014 at 4:08 pm

chifi,
do you know how many other criminals, like Tourre, are in the faculty? I’d imagine at least a few, no?
Michael says:

March 1, 2014 at 4:20 pm

41- Just because it’s a double line street doesn’t mean it’s crap. That road is not that busy and that entire area of Ridgewood is to die for. The tree lined streets and well manicured lawns are what I’m all about. Add in the English Tudor style along with every house using top notch earthly materials on the outside, and you have yourself some pristine neighborhoods. Simply beautiful.
Fast Eddie says:

March 1, 2014 at 5:44 pm

That road is not that busy and that entire area of Ridgewood is to die for.

LMAO!! You’re hilarious!
NJHighlander says:

March 1, 2014 at 6:32 pm

Hiya,
haven’t commented in months, but have been busy putting offers on houses in the 375k fixer upper to 450k ready to move in price points in NW Bergen, Morris and North Passaic counties. At this price point, the inventory is VERY thin. MOre often than not we’re looking at baby boomers sellers who have unrealistic pricing, and on the other side, buyers who are buying 400k houses ALL CASH in under 21 days on market. Since January 1st, myself and two friends, so three buyer couples in total, have lost 6 houses to all cash purchases.

Anyway, nearing getting an offer on paper and terms agreed with a seller, and have had a house inspected yesterday, so I’ve been following njrereport for several years and am finally going to pull the trigger. I’ve saved so much money but going to lose some of that due to interest rate increases, yadda yadda 30 year mortgage.

After 9/11 Livingston had the baby boomers who bought into the town in the late 70’s and early 80’s literally go through a population replacement like ethnic cleansing Soviet style, with new baby boomers and older Gen X buyers coming from the 5 boroughs. I think that’s the next step for Ridgewood, the town is going to change, turn more and more like Great Neck with all the downfalls of the conspicuousness of the new sect of homeowners.

Eddie, the joke about the Duck Pond got me laughing, it’s not even that worth the trip for the housewives since the homemade ice creamery shut down.

House in Kinnelon, baby boomer couple was asking $50k too much for a house, and the original cesspool wasn’t up to code and had to be fully replaced, he tried to go to contract without disclosing this… I only found out After he dropped down 60k and were under contract, that had me lose the house hunting period from Thanksgiving to New Years. Meanwhile interest rates keep rising.

Family friend is now paying 35K a year in property taxes on a house in Mutton Town Long Island. His housing and commuting expenses alone are enough to live as a Don in central America with a beach front villa.
joyce says:

March 1, 2014 at 6:49 pm

34
Michael,
Where did you buy your first place when you were 19 years old?
Comrade Nom Deplume, back as Captain Justice says:

March 2, 2014 at 7:22 am

[44] chifi,

If you’re going to feed the troll, there are plenty of criminals who are now liberal professors. Bill ayers comes to mind. A quick google should uncover others.
Michael says:

March 2, 2014 at 8:29 am

49- In Clifton
Michael says:

March 2, 2014 at 9:18 am

Proof that there is no difference between a republican and democrat. Anybody who spews arguments based on party lines is a tool, a tool of a politician.

http://www.nj.com/news/index.ssf/2014/03/port_authority_officials_battle_over_toll_hikes_was_all_for_show.html#incart_m-rpt-1
joyce says:

March 2, 2014 at 10:16 am

How did you come up with a down payment at 19 years old? I’m assuming you were in school at the time and didn’t live there but rented it out
Michael says:

March 2, 2014 at 11:02 am

I bought the house from my grandmother. She gave it to me for a slight discount by selling it to me for 200,000, when she could have sold it for 250,000. I came up with down payment by being a total cheap a$$. I didn’t spend hardly any money. Hence, why I don’t understand people that are super cheap. I was living like this and saw the flaws of living like this. Saw that I was living life foolishly and missing out on a lot of life by being so cheap. I’m not saying to spend like there’s no tomorrow, I’m just saying don’t save like you are going to live forever.

I had part-time jobs starting at 16 that helped me save up the down payment. I was doing tennis lessons through a Bergen county racquet club for 25 an hour and private lessons at a house in Ridgewood for 50 an hour. One of the families getting private lessons had a tennis court in the backyard that we used for the lessons. I was there a lot. Not only served this family, but also a couple other families that were close with the family from the neighborhood. Had everyone from the kids, to the mothers, and even the fathers.

I also had some money accrued from birthdays and life events like communions. So with that and the money I made from working, I was able to put my money to work in real estate. So far it has been very good to me. Maybe that’s why my point of view of real estate is different from a lot of yours, I have not been burned, quite the opposite.
Michael says:

March 2, 2014 at 11:03 am

Yes, it was rented from day one.
chicagofinance says:

March 2, 2014 at 11:26 am

Slight discount? 20%? So from day one you are $50K in the black….yeah real estate is the best if you can find someone to give it away to you……..you have a lot of sac lecturing Fast Eddie about anything……..

Michael says:
March 2, 2014 at 11:02 am
I bought the house from my grandmother. She gave it to me for a slight discount by selling it to me for 200,000, when she could have sold it for 250,000.
Juice Box says:

March 2, 2014 at 11:38 am

19 year saved 20% down or 40k teaching tennis? Were taxes paid or was this all cash transactions Michael? I would love to see the mortgage approval on that one.
chicagofinance says:

March 2, 2014 at 1:13 pm

Juice: I am only 45 and I am exhausted by decades of lectures from people about “don’t sweat details” and liberal politics. Meanwhile, they never had to sweat a detail in their life, because the second they fell on their face, some family member was ready to drop a six-figure sum in their lap….either directly or through trusts…..the worst batch of these people are the ones without the self-knowledge to understand their position….the absolute bottom of the barrel are those who judge others who “sweat the details”.
chicagofinance says:

March 2, 2014 at 1:19 pm

Money — it’s the root of all evil. Behind every great fortune lies a great crime. Or at least an unfair advantage.
That’s the gist of the liberals’ creed and justification for their war on wealth. The other half of their view holds that the poor are innocent victims of life’s rigged game.
Their narrative of evil winners and noble losers clears the way for self-heroic redeemers. They will deliver social justice by meting out punishment and spreading the wealth around. Their virtue entitles them to power.
It sounds like a comic-book view of life, but it’s the reality of liberalism today. And thanks to the de Blasio administration, New Yorkers are getting a bitter taste of its divisive nature. So much so that talk about quitting Gotham is surging in some circles.
One friend says 10 wealthy people have told him they are leaving and another says disgusted New Yorkers bought $1 billion in residential property in Florida since the November election. The Sunshine State confers an automatic tax cut of about 12 percent because it has no city or state income tax, nor does it have an inheritance tax.
Beyond taxes, the mayor’s open hostility is a factor. His insulting treatment of former Mayor Bloomberg at the inauguration remains a cloud over him. As one affluent woman, a self-described liberal, told me, “De Blasio hates me, so I hate him.” She doesn’t personally know him, but draws her conclusion from his words and deeds.
The central problem is the mayor’s childish view of wealth.
Taking a page out of Barack Obama’s playbook, de Blasio casts his push for a tax hike on those earning over $500,000 as a moral imperative.
“I believe it’s time to ask the wealthy to do a little more,” he said last year. He paints taxes as a matter of giving back, as though the money was taken from others.
The sneering suggestion that everyone with money is somehow guilty of something is not a surprise coming from a man who spent his honeymoon on an illegal trip to Castro’s Cuba. What is a surprise is his lack of appreciation for the impact of wealth on city revenues and the importance of philanthropy to the arts and education.
As Bloomberg often noted, about 5,000 very wealthy families paid 30 percent of the city’s income tax. Losing even a few of them means significantly less money for filling potholes and hiring cops.
Billions in philanthropy support the arts, ranging from local dance groups to the flagship institutions that define New York as a world-class city. Nearly half of the Metropolitan Opera’s operating fund comes from donations, which last year reached $143 million.
The biggest change in the Bloomberg era was an explosion of charitable dollars to help fund the charter-school movement, and that seems to infuriate de Blasio. One reason might be that it threatens his political base. Charters teach 70,000 kids, and if they keep expanding and succeeding, they will be an existential threat to the unions that back him.
Eva Moskowitz, the most prominent and successful charter leader, has borne the brunt of his fury. The mayor is angry that Moskowitz augments her 22 Success Academy schools public funds with millions more from hedge-fund backers. “There is no way in hell that Eva Moskowitz should get free rent,” he thundered last year.
In office, he attacked her compensation of about $475,000, complaining that it is more than he and his first deputy make together. He seems not to care about the many black and Latino children being helped.
Encouraged by Bloomberg, real-estate titans, financiers and trust-funders opened their wallets to schools in extraordinary ways. One generous giver estimates that hundreds of millions of private dollars have gone to groups like KIPP, Harlem Children’s Zone, Harlem Village Academies, Uncommon Schools, Achievement First, PAVE Academy and other educational nonprofits.
One of them, the Harlem Educational Activities Fund, founded by developer Dan Rose in 1989, uses everything from chess to tutoring to college tours to put area students on the path to a productive life. Saluting Rose’s roster of Saturday-morning enrichment programs, Harvard scholar and educator Skip Gates once jokingly thanked him “for bringing Hebrew school to Harlem.”
That was a nod to the unspoken truth about educational philanthropy — the money comes predominately from whites, many of them Jewish, and benefits predominately nonwhite children and families.
There is nothing like it in the world, and for de Blasio to threaten or even discourage that remarkable generosity is not just dumb. It is unforgivable.
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March 2, 2014 at 1:56 pm

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Juice Box says:

March 2, 2014 at 2:09 pm

Chi – New Yorkers have allot more to worry about than educational choices, an increase in gun play because stop and frisk is now over will start a stamped to the burbs.

To be clear the cops aren’t stopping people and the judges are now tossing cases of firearms that were found due to stop and frisk, hence there will be allot more guns on the streets.

Without the deterrent of arrest and prosecution for carrying an illegal firearm I wonder which neighborhood will take the biggest hit in property values?

Here is the data, you can circle a few Hipster Honkey neighborhoods…

http://project.wnyc.org/stop-frisk-guns/
Ascent of the Robots says:

March 2, 2014 at 4:16 pm

De Blasio should be shot and hanged upside down from a lamppost.
Njescapee says:

March 2, 2014 at 6:48 pm

Chifi the wealthy’s money is welcome in Florida. Juet take a look at Miami, Palm Beach Sarasota, Ft Lauderdale. Lots of their $ going to the Charter schools and the Arts.
Michael says:

March 2, 2014 at 8:14 pm

Loan was co-signed by mother, and the loan was secured through an insurance firm with long-term family connections.

“19 year saved 20% down or 40k teaching tennis? Were taxes paid or was this all cash transactions Michael? I would love to see the mortgage approval on that one.”
Michael says:

March 2, 2014 at 8:29 pm

I guess my second purchase would irritate you too. My wife’s sister’s best friend’s mother was getting a divorce. House was built in 94, bought in 2005, totally redone from the inside out. House was appraised at 735,000 and bought it for 650 with 5,000 cash to the husband on the side to complete the deal, so 655,000 total. Got the discount because they were going to sell it to us for 700,000 (since they were taking such a big hit, wanted someone they knew to benefit from their loss, as opposed to a stranger) . Since there was no realtor involved, they took the 45,000 off of the payment that would have went to the brokers.

Yes, I’m lucky and realize that. I realize the benefit that comes from having a family that could help. This is why I can have compassion for the poor kids living in the ghetto. Those kids were screwed from the day they were born. You have to have a little compassion for them.

“Slight discount? 20%? So from day one you are $50K in the black….yeah real estate is the best if you can find someone to give it away to you……..you have a lot of sac lecturing Fast Eddie about anything……..”
Michael says:

March 2, 2014 at 8:35 pm

59- I’m telling you right now, the wealthy supporting charter schools is not a good thing. Say it with me, charter schools are a scam! Once again, why would you ever support a for-profit school as opposed to a non-profit public school. You complain about a superintendent making 180,000 but you support a woman paying herself 455,000 a year to run her school. You people make no sense. The writing is on the wall, just open your mind and read it.
Michael says:

March 2, 2014 at 8:46 pm

Btw, don’t give me that poor lazy crap. The reason immigrants coming here and do well is because they were not the extremely poor individuals in their country. They were held down in their country by an economic system and came looking for opportunities. They were not dealing with a drug addicted family who had given up trying to move up the social ladder generations ago. That’s the difference. It’s not because they are lazy. It’s because they were born into crap circumstances. Plain and simple. They don’t know any better. They don’t even know what the world looks like, all they know is their blocks.
chicagofinance says:

March 2, 2014 at 10:33 pm

I think you missed the main point here. They are lazy and they were born into crap circumstances……the problem is that YOU are lazy, but were born into fostering circumstances. YOU don’t even know what the world looks like, all YOU know is YOUR blocks.

Michael says:
March 2, 2014 at 8:46 pm
It’s not because they are lazy. It’s because they were born into crap circumstances. Plain and simple. They don’t know any better. They don’t even know what the world looks like, all they know is their blocks.

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