Monday, November 16, 2009

Monarch: Rent to Buy?

Last Friday's Home Guide section in the Courier News had a front-page article about The Monarch, the building at 400 East Front Street that has a senior center and veterans center on the ground floor and 63 two-bedroom condo units on three floors above.

The Monarch is now represented by ERA Reed Realty and owner Carl Reed is quoted as saying prospective buyers can explore "leasing to own" a unit or could set up a layaway plan to build up a down payment.

Condo prices begin at $199,000 and under FHA rules, qualified buyers need only put 3.5 percent down. In addition, first-time home buyers may seek an $8,000 tax credit and those "trading up or down for another home" can get a$6,500 tax credit, both measures approved by Congress and President Barack Obama to stimulate sales. Reed says monthly payments can be as low as $2,000 per month.

Open houses will be held from 10 a.m. to 1 p.m. on Nov. 21 and 1 to 4 p.m. on Nov. 22. The article was not online (at least I couldn't find it) but to reach Reed's agency, call (908) 769-0011.

The city is counting on tax revenue from this project, which is the only one completed out of more than a dozen development or redevelopment schemes floated over the last several years.

--Bernice Paglia


Anonymous Anonymous said...

Obama extended the homebuyer's credit, Bernice, I think until June 30, 2010. That should help. What is scary is the "monthly payments can be as low as $2,000 per month." Does that include the property taxes, Bernice? Is Carl Reed serious? That's a lot of money per month for a condo priced at $199,000!! The payment should be much lower, given the interest rates. If someone is just able to qualify for FHA, there's no way they would be able to afford $2,000 a month and also pay bills, food, and utilities! Something doesn't make sense with those numbers!
I live in a house with 3 bedrooms and 2 bathrooms and a nice sized yard and my whole payment including property taxes is about the same. There are still a lot of houses on the market for around the price of the Monarch condos and you have your own driveway and garage and yard. Why would you get a condo where you can only park one and a half cars?? In addition, if the taxes are going to go up by 10%, we're all going to get the whammy soon enough!

Again, how can someone who is maybe barely qualifying for a mortgage and getting FHA going to afford $2,000 a month just for the condo and taxes assuming taxes are included? It would be good to know if Mr. Reed is including property taxes in that $2,000 figure.

10:49 AM  
Blogger active citizen said...

Great! They have the city's second biggest slum lord selling condos. I'm glad the abatement is dead, I was tired of going to City Council meetings and having it tabled because of our unprepared mayor and her flunkies.

10:55 AM  
Anonymous Anonymous said...

I agree with 10:49am. I own my 3 bedroom, 2 bathroom home. my mortgage note is 210K and including my crazy property taxes I only pay 1980.00 per month!

6:16 PM  
Blogger Rob said...

Bernice: You said it best in the last line ... " SCHEMES ".

9:47 PM  

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