Find Your Space
Priced $150k - $450k. Interest rates down to 2.65%. Huge Tax Credit.
Do The Math:
TAXES:
Residential Enhanced LERTA
(Local Economic Revitalization Tax Act)
This program applies to a condominium in a renovated building that was previously used for commercial or industrial purposes. Residential Enhanced LERTA allows the buyer to receive tax credits from the City in an amount up to $2,700/yr and from the School District in an amount up to $3,480/yr for 10 years, based on the increased value of the property.
For example, One 5th Ave is currently appealing the assessment to reduce the value of the existing vacant building to the purchase price of $515,000
This financing example shows the available tax credits based on the incremental value with and without tax incentive:
Existing Value: $50,000
Purchase Price: $300,000
Estimated City/School Taxes: $80/month based on full value County assessment (ten year $250,000 tax abatement should reduce the taxes from $500/month to $80/month)
Estimated County Taxes: $100/month (with ACT 42 County Abatement)
Indoor Parking: $165/month
Predicted HOA Fee for 1000 ft2 unit: $200/month (includes water/sewer, insurance, security, testing, management fees, roof deck access, basement storage, reserve capital savings for future projects, etc..)
Total Monthly Bill with 25% down payment and excellent credit (740 or higher):
$1,400 on a 3.5% 30-year Mortgage or $1,565 with parking
OR
$1,332 on a 2.6125% 5-1 ARM or $1,497 with parking
Total Montly Bill with very good credit (700-739):
$1,450 per month or $1,615 with parking
Monthly bills are even lower with a 5-1 ARM variable interest loan. Rates have been at 2.625% from October 2011 through January 19, 2012
MORE TAX BENEFITS: don't forget that your interest payment is tax deductible!
*Current Mortgage from Dollar Bank and others...go to www.google.com/advisor for more bank rates
The prices combined with historically low interest rates, 10-year and 3-year tax abatements for city, school and county plus the federal income tax deduction of your interest paid makes this a no brainer. Your mortgage payment should be less than rent for a comparable apartment building where rents are rising fast.
Think modern, urban, lofty, contemporary design or look elsewhere. One 5th's units are unique due to the variation in views and floor plans. Some feature open loft spaces with optional Murphy beds, high ceilings, moveable walls, glass transoms and contemporary kitchens. All feature attractive on-site amenities like a fitness center, community gathering area and a wide range of color and style options.
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