recklessmax80 OP t1_jbkk187 wrote on March 9, 2023 at 6:32 PM

Reply to comment by [deleted] in Newport Rental Crazy Price Increase 20-25%+ by recklessmax80

Sorry but thats a poor justification. A 32% tax increase on a 500K property would increase property taxes by 600$ a quarter or 200$ per month which is less than 5% of the rent so there is no comparison to the price gouging

pixel_of_moral_decay t1_jbmo5mv wrote on March 10, 2023 at 3:19 AM

$200 per month is “Less than 5% of the rent”?

$500k downtown is an walk up 1 bedroom or studio… that needs renovation. Definitely no amenities other than a mailbox. Where in Newport is there a >$4,000/mo studio apartment with no amenities?

You’re math seems really off here.

flapjack212 t1_jbp3cy3 wrote on March 10, 2023 at 5:15 PM

yeah OP's math is definitely off. by my guess the tax increase could justify anywhere between 10-15% increase in rent.

the next biggest component is probably the increase interest rates, as commercial loans are often variable rate. interest rates have doubled

pixel_of_moral_decay t1_jbpd4y0 wrote on March 10, 2023 at 6:17 PM

Next is by far labor.

Look at condo budgets and you’d see it’s always about 50% labor directly (doorman, porter) and indirectly (plumbers, hvac, carpet cleaners etc). That’s outpaced inflation by quite a bit due to minimum wage increases, unionization in NY for doormen and a shortage of tradespeople.

recklessmax80 OP t1_jbu66wf wrote on March 11, 2023 at 7:09 PM

Sorry to say but your reasearch is off. There are multiple properties on zillow in the area 1bed 1 bath for close to 500K and up (not much renovation needed) and 2 bed 2bath from 700K upwards based on when it was built and facilities