Monarch Already Has Breaks
An article on the front page of the Courier News Home Guide Friday describes two benefits that condo buyers at The Monarch may enjoy.
First, with permission of the Federal Housing Administration, prospective condo buyers need not come up with the traditional 20 to 30 percent of the sale price for a 30-year mortgage, but can "pay as little as 3.5 percent of the total cost of the residence at the time of closing."
In addition, first-time home buyers who act before Nov. 30 "may qualify for a tax credit of up to $8,000."
All the more reason for the City Council to think hard about allowing an unprecedented 40 percent tax abatement to entice buyers to the 63-unit development at 400 East Front Street. An ordinance to that effect passed on first reading July 20 and will be up for a public hearing before second reading and final passage on Aug. 17. Councilman Adrian Mapp has stated he will vote "no" on the abatement.
Among other details in the article, the condo prices are listed as starting in "the low $200,000s." This is a reduction of nearly a third or fourth from the original price, another benefit for buyers.
It is unfortunate that this much-anticipated senior center/condo complex is coming on line in the midst of an economic collapse. But there are many other victims than the developer of The Monarch. Should those who lost a large portion of their life savings be forgiven a percentage of their taxes? How about the large numbers of middle-aged journalists and other professionals who just lost their jobs in industries that are shrinking or disappearing? Should they get a break while they seek new livelihoods?
The new FHA program, the $8,000 stimulus tax credit and reduced price should be inducements enough to buyers at The Monarch without creating a revenue gap in the city tax coffers. Friday's article cites the many attractions of The Monarch, such as gourmet kitchens, spacious layouts and accessibility to rail and bus links. See more at http://www.monarchliving.net/ and on tours from 1 to 4 p.m. on Aug. 1 and 2.
--Bernice Paglia
First, with permission of the Federal Housing Administration, prospective condo buyers need not come up with the traditional 20 to 30 percent of the sale price for a 30-year mortgage, but can "pay as little as 3.5 percent of the total cost of the residence at the time of closing."
In addition, first-time home buyers who act before Nov. 30 "may qualify for a tax credit of up to $8,000."
All the more reason for the City Council to think hard about allowing an unprecedented 40 percent tax abatement to entice buyers to the 63-unit development at 400 East Front Street. An ordinance to that effect passed on first reading July 20 and will be up for a public hearing before second reading and final passage on Aug. 17. Councilman Adrian Mapp has stated he will vote "no" on the abatement.
Among other details in the article, the condo prices are listed as starting in "the low $200,000s." This is a reduction of nearly a third or fourth from the original price, another benefit for buyers.
It is unfortunate that this much-anticipated senior center/condo complex is coming on line in the midst of an economic collapse. But there are many other victims than the developer of The Monarch. Should those who lost a large portion of their life savings be forgiven a percentage of their taxes? How about the large numbers of middle-aged journalists and other professionals who just lost their jobs in industries that are shrinking or disappearing? Should they get a break while they seek new livelihoods?
The new FHA program, the $8,000 stimulus tax credit and reduced price should be inducements enough to buyers at The Monarch without creating a revenue gap in the city tax coffers. Friday's article cites the many attractions of The Monarch, such as gourmet kitchens, spacious layouts and accessibility to rail and bus links. See more at http://www.monarchliving.net/ and on tours from 1 to 4 p.m. on Aug. 1 and 2.
--Bernice Paglia
posted by Bernice at 7:45 AM
5 Comments:
Bernice the "DUH" in this is that ff the scenario around the Monarch project is rosy as you are pitching, then should they not be sold out by now?
I mean $8,000 + gourmet kitchen...wow! Who could ever resist. Some may even want to give up renting and finally buy one.
Alas, the sales job has not worked on buyers. Such are the ABCs of economics. Taught at virtually every university in America. As I recall, Econ 101 was a very popular course taken by many in many fields.
Maybe we need one for Plainfield - I would suggest on concentrating on the section that talks about supply and demand and the elasticity of demand.
The $8,000 first time home buyer tax credit expires on Dec. 1, unless extended. Just wondering if these condo's will be completed by then?
Bernice, I clicked on the link to Monarch and they have photos, some of which, I cannot identify as being in Plainfield. For example, the church pictured is Scotch Plains Baptist Church, in Scotch Plains! Why would that be put in this ad, it seems like deceptive advertising to me. We have several beautiful churches in Plainfield so why not put one of those? There is something really fishy going on here. Fishman is from Lakewood NJ, has he built any developments there? What is his track record?
I am glad that you posted this Bernice. Yes, there are tax credits available to homebuyers that weren't available before this year. Those who qualify for a mortgage of $200,000 will certainly be able to take advantage of them and will get a pretty penny back on their federal income tax returns. This "abatement" seems to be more smoke and mirrors from the administration. I'm glad the people are not buying it. Lets hope that some of the other councilpeople do what Mapp did and admit they made a mistake by voting for this. At the very least, they should vote no. The administration can always bring it up again at a later date. Whats the rush with this? Homes are selling slowly right now, everyone knows it, especially all the councilpeople who have real estate licenses, which is McWilliams, Burney and his wife Wendy, Carter, Storch' wife and Mapp's wife. They know the reality of the market and they know as real estate people what real estate lawyers tell their clients about tax credits and tax breaks. They also know that anyone buying a condo or house has an attorney and a realtor who will get the best deal for them. There's no reason for the city to offer incentives.
It still comes down to location, location, location. How many seniors want to be there on Front Street when for the same money, they can be in another community with vast amenities, pool, tennis, etc.
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