The Real Deal New York

Catsimatidis: Raising property taxes will chase people away

Ex-mayoral candidate says high taxes and rents are already holding NYC market down
March 11, 2014 03:06PM

Despite news that billionaire Warren Buffett’s is investing in New York City real estate, the industry is still held down by unaffordably high rents and rising property taxes, according to John Catsimatidis, the top gun at development firm Red Apple Group and a former mayoral candidate.

Although Jeff Blau told Bloomberg earlier this week that the city’s tax system needs an overhaul, Catsimatidis told Bloomberg TV that he thinks hiking rates could suppress the market by encouraging buyers to look for homes in other major U.S. metropolitan areas.

“I don’t think we should raise taxes and chase people away,” Catsimatidis said. “If we chase out the people that go to the restaurants, take the taxis, etcetera, then the waiters are going to lose their jobs, the bus boys are going to lose their jobs, the taxi cab drivers are going to lose their jobs. It hurts.”

Property taxes for single-family homeowners are expected to increase 3.5 percent in 2015, according to estimates from the Department of Finance. [Bloomberg] — Angela Hunt

  • clear bias

    Basically, property owners are held to Singaporean standards but there’s no safety net waiting for us at retirement. We are held to the highest standards, providing heat and hot water that NYCHA fails to do and we are expected to pay for property taxes when the rents are regulated and repairs are supposed to be made something that NYCHA cannot do and the NYC Public Library system refuses to do instead seeking to enforce eminent domain in order to avoid paying rent so they can afford to make repairs.

    See the bias?

    Catsimatidis’ comments are going to move the rent regulation of everything forward because “the rent is too damn high.”

    But the maintenance fees for condo and coop units are going to stay unregulated, correct? How is it that rent regulated tenants are paying less rent than maintenance fees for a comparable condo or coop if maintenance is based on operating costs? He’s not claiming that maintenance fees are too high but they are getting too high for many unit owners, correct? So those owners are out of luck, right? Just like multifamily property owners.

    • You’re right. You should sell now and move to New Jersey.