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Is any co-op or condo in New York increasing their mortgage in order to pay the steep increase in NYS/NYC real estate taxes caused by the rapid escalation of building valuations? I know all of us are trying to roll back the increases by appealing to the city, and there is some success, but with valuations going up 2-3 times and taxes more than doubling, there is consideration of reducing the burden on individual shareholders by borrowing to mitigate and slow down the rate of maintenance increases caused by the tax increase. How is your co-op coping with this problem?
I completely agree with Jake. As difficult as it is, you must raise the necessary funds for your taxes and all other operating expenses through your maintenance or other sources of income that your building may have. At the same time make sure that you have engaged with a Certiorari attorney to protest your valuation on an ongoing basis.
WAB and JAKE,
Thank you for your response. Very helpful. I will pass it on to other board members. Best, FD
You might as well finance your electric and fuel bills for the next 10 years also and eventually the debt burden will be so great that the value of the apartment will drop to next to nothing and you will be struggling to pay a 25,000 per month maintenance bill on your apartment...
Sounds almost like the United States budgeting practices that put us all in the spot we are in...
Not beating a dead horse here, but.. Don't do it!
~AR
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Operating expenses are never to be funded by a mortgage. It is a death spiral.
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