Friday, April 01, 2011 | Source: Entrepreneur
Overwork went straight to Douglas Heddings’ back. The founder of Heddings Property Group in New York City, Heddings has suffered from chronic stress-related back pain for more than a decade. Even as he recuperated from spine surgery, the pace didn’t let up. His inbox filled at the rate of 50 e-mails per hour. The back problem “has a great deal to do with the fact that I feel I have to be on call 24/7,” Heddings says.
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Thursday, March 24, 2011 | Source: The Street.com
Overwork went straight to Douglas Heddings’ back. The founder of Heddings Property Group in New York City, Heddings has suffered from chronic stress-related back pain for more than a decade. Even as he recuperated from spine surgery, the pace didn’t let up. His inbox filled at the rate of 50 emails per hour. The back problem “has a great deal to do with the fact that I feel I have to be on call 24/7,” Heddings says.
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Many have asked me what I think will happen to the Hamptons real estate market after the below tax decision. My answer: People with second homes will make absolutely sure that they or their families don't spend more than 183 or more days per year in that house…or the tax man will cometh! Below is some additional information on the case as well as a direct link to the ruling.
The decision did not change the long standing interpretation of the law that basically states that someone who owns or rents a residence in New York and who spends any part of at least 183 days in the State during the year is a resident of New York and subject to all New York State taxes on all of their income. Below is the Roberts & Holland bulletin.
The recent Barker Decision of the New York State Tax Appeals Tribunal has generated many questions in the industry.
The case involved a taxpayer who owned a vacation home in the Hamptons and the definition of a resident for New York State tax purposes. The outcome of the case did not surprise many tax professionals.
New York State and City tax resident individuals on their worldwide income. Nonresidents are taxed only on certain categories of income sourced in New York. The State and City define the term "resident" similarly, with two alternative tests. An individual is a "resident" of New York if either (i) the individual is "domiciled" in New York, or (ii) the individual both (a) maintains a "permanent place of abode" in New York and (b) spends all or part of more than 183 days in New York. Thus individuals who are domiciled outside New York State (e.g. in Connecticut or New Jersey) may be characterized and taxed as New York residents if they maintain a permanent place of abode in New York and spend more than 183 days in New York during the year. Additionally, individuals who are residents of New York State but not New York City (e.g. Long Island) may also be New York City residents if they maintain a New York City permanent place of abode and spend more than 183 days in the City.
Accordingly, individuals who regularly commute into New York for business must generally avoid owning or renting a house or apartment in New York in order to avoid being classified as a resident for tax purposes.
The Tax Law does not define the term "permanent place of abode," but the regulations provide the following:
dwelling place permanently maintained by the taxpayer, whether or not
owned by the taxpayer. . . .
However, a mere camp or cottage,
which is suitable and used only for vacations, is not a permanent place
Furthermore, a barracks or any construction which does not
contain facilities ordinarily found in a dwelling, such as facilities for
cooking, bathing, etc., will generally not be deemed a permanent place
abode.
The Barker case involved a Connecticut resident who regularly commuted to a job in Manhattan and owned a house in the Hamptons. The house was rarely used by the Barkers and was not located near Mr. Barker's place of employment. Nevertheless, since the house was usable during the year (and was used many weekends during the year by Mrs. Barker's parents), it qualified as a permanent place of abode and Mr. Barker was found to be a resident of New York State. (Since they did not have a residence in New York City, Mr. Barker was not a City resident.)
My friend and colleague Noah Rosenblatt at
UrbanDigs posted a brilliant read yesterday discussing the
lag between closed sales and the date they are filed and the influence this lag has on market reports.
Check it out, a detailed and well thought out post illustrating how real time data isn't always real time at all.
Tuesday, March 01, 2011 | Source: Brickunderground.com
Q. What are your options if the appraisal comes in too low when you’re in contract to buy an apartment? I can’t get the mortgage I need and the seller won’t budge on the price. Should I ask for a new appraisal?A. Many banks won’t revisit their appraisal findings, say our experts, but if you’ve got evidence showing that the appraisal is out of touch with reality, you should certainly try asking the bank to review the appraisal and request either an updated appraisal or an entirely new one.
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Tuesday, February 22, 2011 | Source: The Real Deal
Small details which affect the appearance of an apartment can change the ultimate sales price by 5 to 10 percent, brokers told the New York Times.
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Monday, February 21, 2011 | Source: The New York Times
On a recent Thursday morning, Jamella Swift, a Citi Habitats broker, was trying to anticipate every detail that would prevent a buyer from purchasing the two-bedroom condo she was selling in Bedford-Stuyvesant…
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Wednesday, February 16, 2011 | Source: NY Post
Traditionally, President’s Day weekend serves as the starting gun for the moneyed set to elbow their way out to the Hamptons and hunt down a seaside summer rental.While the race was more of a saunter the last couple summers — thanks to the economic downturn — renters are suddenly again hopping to. Many have even gotten a head start.
“This season is going to be strong; I started looking for people in September,” says Maria Pascal, associate broker at Heddings Property Group. “I even had a few rental deals done in September.”
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It’s no secret that cash is king despite the fact that the dollar is worth only a mere fraction of itself. And cash buyers of Manhattan and Hampton’s real estate have been dealt a ROYAL flush!
If you are one of the “borrowing” majority in the market to buy a home, you are probably watching interest rates on a daily basis and anticipating their rise with each passing hour. Your search for the perfect home is likely fraught with anxiety surrounding interest rates and what your monthly payment will be should you not locate your home prior to the next uptick. You are probably doing calculations on a regular basis to determine if it makes more sense to buy now at current low rates or wait for prices to come down and purchase at a higher interest rate. Everyone’s specific situation is unique and their isn’t one good answer for the masses.
But if you are an all cash buyer, the market is your oyster. There is no sense of urgency surrounding interest rates so the cash buyer can take their time based on where they believe prices are heading and perhaps capitalize on the impending increase in the cost of borrowing. It is a relatively simple formula: as the cost of borrowing increases, borrowers can afford less and therefore prices must come down. A great time to be the all cash buyer.
Now in Manhattan we have the added element of inventory which often serves to prop up or bring down prices. For instance, it is entirely possible that as interest rates increase, inventory will simultaneously decrease and offset any additional price depreciation. Conversely, we could have a sudden pop in inventory as sellers try to unload their homes to that largest pool of interest rate sensitive buyers. The latter seems to be where we are in today’s market with contract signings up significantly in the past couple of weeks.
So I have no crystal ball but from anecdotal evidence I can tell you that we have a few clients right now who are sitting on the sidelines with an abundance of cash just waiting for the opportunity to pounce on the right property. Many of these clients have decided to rent very pricey homes (in excess of $20,000/month) in lieu of buying in today’s market with hopes that in a couple of years, interest rates will be considerably higher and prices will have come down. Only time will tell if their bet pays off.
In the meantime, many are taking advantage are still low interest rates, others rent, and some have decided that a move is just not in their near future. I’m reluctant to say this but for many, now is indeed the time to buy. And for sellers, there is a window of opportunity that exists RIGHT NOW that isn’t going to last forever. Just ask the all cash buyers.
From Jill Urban at NY1 News comes this piece on the power of video in marketing and selling homes.
No surprise that I’m featured in this piece as I have been a huge proponent of real estate video tours since Spring 2007!
