Hoboken Mom Condo Living
Planning the long-term & juggling the everyday

We appreciate you adding your voice to ours to make an impact.

Please email us if you would like to receive updates from us on Hoboken government and how you can help  improve it.

Kathy Zucker & Barbara Bravo

Just like after the stock market crash in October 2008, it’s going to take months for the housing data to trickle in on the impact of the scandal of the Hoboken mayor being indicted by the FBI for accepting bribes. I knew Hoboken (and New Jersey) were corrupt before I moved here, and I reassured myself that there is political corruption all over the metro NY area, but it still didn’t sufficiently prepare me for the body blow of learning just how widespread and deep the corruption really is. What really scares me is the segment of the population (a friend of mine who is a journalist estimates it at 25% of Hoboken) that shrugs off the charges because apparently that is just the way things are! It’s perfectly normal for our elected officials to take bribes to influence their decisions! Shiver.

Most of my friends say it is a good thing that the FBI came in to clean house since this will open up a lot of previously inaccessible city records and promote a new era of transparency. However, since these people are also homeowners in Hoboken, they are not objective. If I were a buyer, I would be freaked by the scandal. And sure enough, someone who was looking at the 4BR the developer is selling near me in SW Hoboken sent me the following email:

Hi Kathy,
I see a lot of chatter amongst this mail group on the scandal involving the mayor of Hoboken.  Living overseas, we are obviously not in the know though we have heard of FBI recently uncovering a money laundering scheme in NJ, I guess the mayor is implicated in it as well…As we don’t live in Hoboken yet, I have no opinion on the matter (though, when it comes to politicians, experience shows, where there’s smoke, there’s fire) My question is more about the state of Hoboken as a city?  Is it true that it’s bankrupt?  How can it be with taxes being so high (they are high, at least comparing to NYC)?  And more importantly, how does it affect the life in the city?  Do schools still receive sufficient funding? Is garbage being picked up regularly?  Is police, fire and other life essential departments fully staffed and operational?  Is there talk of raising taxes even more?  Any way you feel the impact of the current dire financial situation in Hoboken?

I appreciate you being frank and honest on this matter.

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My response was:

Hi, A,

Hoo, boy. Where do I start? First of all, it’s almost 100% certain that the Mayor is guilty. The FBI doesn’t mess around. I wrote a blog post about it with useful links here. The money laundering was originating in Brooklyn and the Jersey Shore, and the proceeds were being used as bribes for developers -political corruption is very deep in the NY/NJ/CT area. It’s because this area is much older and more settled than most of the country, and so political structures got set up 150 years ago that are hard to disband. I knew about it before I moved to Hoboken, and I am optimistic that the end is in sight. Thanks to the internet, grassroots citizens like me are able to band together and effect change. While it is deeply embarrassing to be in the media spotlight like this, it means there is a ton of attention on everything our government is doing, and they can’t get away with anything anymore.

Cammarano is either going to resign or be forced from office. It is an election year for our Democratic governor, and it is deeply embarrassing for Corzine to have the spotlight on an associate and member of his party. The NYTimes says he is putting together legislation removing indicted officials from office.

Hoboken is not bankrupt. The city does not have a bond rating but the 2007 parking utility bond rating was baa2, which is decent. All the Hoboken city operations are functional (trash, fire, etc). There is definitely no shortage of money since there are festivals practically every weekend free of charge to residents (face painting, balloon blowing, bounce houses, pony rides). I actually don’t mind paying higher property taxes to support all that stuff -it is nice to have stuff to walk to on weekends.

I chose to buy my 4BR in March even after receiving a 47% tax increase last fall in my 2BR. Property taxes are much worse in NJ suburbs -a similar 4BR house in Montclair carries about $24k in tax. I basically made the bet that taxes would remain stable because government officials are going to come in and make cuts that will bring down the city’s costs. I am paying $11,608 in annual property taxes. I filed a tax appeal this year and expect to receive about $1,000 discount based on my neighbors’ responses.

Hoboken property taxes are high relative to NYC but the income taxes are much lower (about 25% less). You also do not have the kind of new housing stock since there are more older buildings-the same 4BR in Brooklyn would cost about $1.3 million, and above $2 million in Manhattan. The public schools are also much worse in NYC, and the private schools are much more expensive ($35k for pre-k at St Ann’s in Brooklyn).

You are never going to get the perfect solution to housing. I have been very happy with my decision to buy my 4BR for $787k in March -we got an interest rate of 4.5% on a 30-year fixed rate mortgage because the building is 90% sold and owner-occupied. No matter what, Hoboken will be all right because there are so many educated, high-income residents. That is why we live here instead of Jersey City.

Kathy

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7/31 Update

Hi,

In case you hadn’t heard, I wanted to let you know that the mayor of Hoboken has stepped down. His opposition candidate in the mayoral election, Dawn Zimmer, will be sworn in as acting mayor at noon.

There has been a lot of progress toward transparency in the last year. New Hoboken residents have taken the majority of seats on both the board of ed and the City Council, and now we have the mayor’s office, at least until the election in November. I believe that with all these educated, conscientious people in office, the corrupt people know they cannot get away with it. There is corruption everywhere, but at least we are aware of it -I much prefer that than the state of suspicious oblivion before the FBI showed up.

I hope to see your husband next week when he is in town -hope you and your family are doing well and enjoying the summer before your big move!

Kathy Zucker

I recently wrote about how Amazon.com has saved me tons of time and money over the years. I got some reader questions about what I buy, so here is a list of my subscriptions and recent purchases at Amazon.

Subscriptions:

Huggies Overnites Diapers, Size 5 every 2 months (56 diapers for $21.32)

HP 56 Twinpack Black Ink Cartridge (C9319FN) every 6 months ($33.05)

Country Save HE Laundry Detergent, Powder, 160-Load, 10-lb Boxes (Case of 4) every 3 months ($52.83)

Nature babycare Eco-Friendly Diapers, 120-Count Package every month ($37.39)

Kellogg’s Frosted Bite Size Mini-Wheats Cereal, (Pack of 4) every 2 months ($14.16)

Nature’s Gate Organics Conditioner, Tea Tree Oil & Blue Cypress (Pack of 3) every 6 months ($20.07)

Mrs. Meyer’s Clean Day Dish Soap, 16-Ounce Bottles (Case of 6) every 6 months ($23.41)

Lansinoh 20435 Breastmilk Storage Bags, 25-Count Boxes (Pack of 3) every 6 months ($13.74)

Seventh Generation Training Pants every 2 months ($39.09)

Jaya Biodegradable Forks canceled after first order ($35.02)

Recent Purchases:

Miele IntensiveClean Vacuum Bags Type K . ($15.45)

Waterford Trista 70-inch by 104-inch Tablecloth ($15.95)

Robeez Infant/Toddler Sporty Slip-On ($27.95)

Columbia Sportswear Women’s Cougar Flats Jacket ($33.75)

Biofino Petit Fours, ($9 + $3.17 shipping)

Norpro 8 Piece Decorating Set ($8.99)

Create Your Own Robot: Sticker Activity Book ($1.50)

Good Cook Mini Fry Pan ($9.99)

Hanes Beefy-T - Youth 100% Cotton T-Shirt (3 for $24.75)

Epson S041153 Iron-on Cool Transfer Paper ($13.95)

You have to break each item down to the individual price and figure out 1) is it actually cheaper at costco/BJs? and 2) are you going to use that many? I also like the product reviews at Amazon -I know the t-shirts and iron-ons are excellent quality, whereas there are no product reviews in store. That’s the only time I ever wish I had a blackberry, so I can look up items before buying them.

I just bought 500 biodegradable forks from Amazon for about 1¢ each. We use about 50 forks every time we have a party (25 each for lunch and dessert) so that’s enough for about 3 years. And the next cheapest forks were about 4¢, so at that price, I don’t care if some get lost or never used. The forks also came packaged in small boxes of 24, so they were easy to divide up and store (I keep a couple of boxes handy and put the rest in our outdoor storage unit).

This is a post I made yesterday at HobokenMoms@yahoogroups.com. I think it helps keep perspective about how this is about what we have in common -we all want to get Peter Cammarano out of office as Mayor of Hoboken.

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I have lived in Hoboken for seven years and have never understood the difference between true Hobokenites and false ones. FWIW, I am BNR (born & raised)  in Bay Ridge, Brooklyn, a very Italian neighborhood, and so was my father. And my grandfather moved there when in the 1940s. I am Chinese. I don’t live in Bay Ridge because I can’t afford it, but never once in all the decades I lived there did I feel a difference between myself and anyone else who lived there, regardless of how long their families had been there. Only in Hoboken do I feel judged by my appearance as I walk down the street.

This isn’t about credentials. It’s about right and wrong. We all have different standards about where the line is drawn, but I think we can all agree that Peter Cammarano has crossed that line. It’s unfortunate that a vocal minority of
people decided to express their outrage in front of Cammarano’s house, but that’s all they were -a minority. The fact is, Cammarano has betrayed the public trust, his office as mayor, and each one of us as individuals. He has to reap
the whirlwind, and that means there are going to be extreme reactions.

You don’t want Cammarano to remain mayor, I don’t want him there, and I would bet 99% of this town doesn’t want him there. We may differ about our methods of expressing this, but the end result is something we should all work toward. This is only going to get worse the longer Cammarano stays in office.

Kathy Zucker

SIGN FREE PETITION ONLINE AT http://CammaranoResign.easyurl.net

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July 24, 2009

Dear Mr. Cammarano,

Yesterday, serious allegations were charged against you by the IRS and the FBI which are currently proceeding through the judicial system. It is our understanding that your administration has a “clear-cut, zero tolerance policy against any violation of the public trust.”

The signatures below represent citizens of Hoboken who feel that their trust has been violated and should indicate to you our extreme disappointment.  With the public trust in jeopardy, how can you run a city?  With the best interest of Hoboken you must resign immediately! We are sorry that you think of us as powder since we are the parents, the policeman, the fireman, the bank clerk, the taxpayer, the teacher  - the bread and butter of Hoboken. We feel that at this time no words can explain our anger and disappointment. You now must apply your own  “zero tolerance” standard to yourself and resign.

A direct quote from you in the federal criminal complaint states that “There’s the people who were with us … There’s the people who climbed on board in the runoff. They can get in line … And then there are the people who were against us the whole way. They get ground. They get ground into powder.”

We have no confidence in your ability to effectively govern Hoboken and demand that you step down immediately as mayor.

Yours truly,

Voting Citizens of Hoboken

If you would like to sign this letter, you can do so one of three ways:

1. Sign up online at http://www.ipetitions.com/petition/CammaranoResign/
2. Send email with your full name and address to pcstepdownnow@aol.com
3. Fax this letter to 815-301-2727 (please sign and print your name)

Signed letters can be dropped off at 708 Hudson St, Apt 1

You can also call City Hall at 201-420-2013 to ask for Cammarano’s resignation (but sign too - we want to present City Hall early next week with a letter signed by thousands of Hobokenites.)

Update 7/25: 237 signatures here and here. Keep up the good work!

On Thursday, I will put together a master list of all the petition signatures (sources are online, email, fax and hardcopy), print a letter with all the names and contact info, and Barbara Bravo and I will bring it to City Hall. We will also send a copy to Corzine in Trenton. Maybe this will help him push through the legislation to oust indicted public officials discussed in today’s NYTimes article.

Update 7/26: 293 signatures here and here. Petition going on Thursday to Cammarano, Corzine and City Council members.

Update 7/27: 481 signatures here and here. Help keep up the pressure and make Corzine force Cammarano out!

Update 7/28: 600 signatures! We are extending the deadline until Saturday to make sure we get over 1,000 signatures.

Kathy:  We closed on Friday!! Yay!  We spent the weekend in Hoboken preparing the condo for the move.  We’re redoing the floors, so we won’t move until the beginning of August.

We finally found out why the seller tried to back out after attorney review though…apparently, they got an offer 12K higher than ours one hour after they signed the contract and sent it to me…

I insisted that we got out of atty review by the end of Friday because I didn’t want to give them an add’l weekend to show the place because they had just lowered the price 15K…thank goodness!

Saturday in Hoboken was very nice.  It was sunny and everyone was out and about.  I’m supre excited….and ansy to leave Harlem…I’ve definitely had it with the summer block parties…

I’m still reading your blog religiously and just about wanted to die when you wrote that you think the next 5 years will bring depriciation!  We want to sell in 5 years, so that’s not good news!  But, like I told my husband on Friday, we’ve already appreciated 12k….ahahahaha.

Ah, I shared you’re grocery list with a girlfried who was shocked by your income/house pmt ratio.  She’s now on a strict grocery budget!

Hope all is well,

Susana

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Congratulations!!! So relieved that everything worked out for you. What mortgage type did you go with? What lender did you use and what rate did you get? And how was the closing process? We had to jump through hoops with our closing ($50k fidelity bond, $10k flood insurance, you get the idea) but that may have been because we were jumbo vs. conventional.

First of all, my assessment of five years stagnant housing is just a general sense of the market. It does not apply to individual units. It sounds like you got a fantastic price on your 2BR (the upgrades are out of this world) -the fact that the sellers got another, higher offer, so quickly after yours means it is both a desirable unit (something people don’t seem to realize makes a big difference for resale) and priced very competitively.

You should assume you will be able to sell your 2BR for the same price you paid. I never go into any real estate purchase assuming there will be appreciation. It’s a nice surprise when it happens, but it is not part of my financial model. I basically assume we will accrue equity, save money on not having to move every year or two, and for the same price as a rental, have a really nice home to live in (people beat the crap out of rental units and buildings, plus the quality of construction and appliances is much better in owner-occupied buildings). I also appreciate the lack of mice and insects, something that I experienced in almost every rental we have lived in.

The other thing to consider is that this is not the final home you will be buying. It is actually better for you if the market remains stagnant for the next five years because that way you know how much it will cost you to upgrade. It’s incredibly heady to watch your property value go up and up, until you realize it’s going to cost you $1MM to buy your next apartment (not to mention the fun mansion tax you’ll have to pay).

Nobody really knows where the real estate market is going, why else were we all blindsided by the abrupt downturn that began in October 2008? All you can do is try to get the best possible deal for your situation (not staying in NYC is smart financially), close your eyes, and jump in. And then cross your fingers that things will work out the way you expect. Sudden job loss, severe illness, these are all things nobody factors into their financial equation. But it can happen to any one of us, so all we can do is try to have some cushion.

And the other thing is, you qualified now for a good mortgage. That alone is worth quite a lot. You cannot get a mortgage now if you are self-employed, and who doesn’t dream about working for themselves (in my case, from home)? Timing and circumstances are working for you now, so don’t worry about things not within your control.

Kathy

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Hi Kathy!  We went with a 30 year fixed mortgage from Pinnacle Mortgage (Wells Fargo is the lender) - very low fees (commitment and application fee - about $600 and free appraisal) and awesome customer service - instant replies to my emails.  Our rate was 5.5%.  I wish we had locked in a week earlier when we got a rate of 4.85%…oh well.  Lesson learned.   The closing process was seamless.  We only had to escrow taxes (HOAs).

Oh, and I was actually going to ask you to give a little shout out to my realtor in case your FSBO friends ever decide to go the realtor route…Kevin from Halliburton Homes was amazing.  Another person who instantly replied and answered all my questions.  He’ll call the tax assessor, listing agents, FSBO folks…anyone, just to answer questions quickly.  And, he will always make time for showings around your schedule.  Anyway, he was so great, I’d love to do something nice for him.  I truly appreciate great service…it’s rare these days.

No bond, no flood insurance needed (the ass’n has it for the common areas).  Just needed homeowner’s insurance, and we’re paying PMI bc we only put 10% down.  :o(

Our closing costs ended up being less than 6.5K and we did a 5K seller concession for closing, so that was great - we got to roll the closing into the mortgage and leave money liquid, just in case…

We are doing the floors right now as we speak and then painting and then we move in.  Yay!

I’ve scoped out the A&P you blogged about (is it the one near home depot)?  I will take your suggestion of shopping there, for sure.

It would be great to make profit so we can get a better place when we have kids.  Of course, you never know, so we don’t count on it.  But, it would be nice.  Neither Dave or I get any help from our families, so…we’re on our own…no large inheritances or large gifts ever coming our way!  Plus, I have massive student debt….ah…if I only knew then what I know now…

Susana

According to the Associated Press, sales of previously owned homes has risen for three months in a row.

Not sure how this relates to the NYC MSA and Hoboken, but the fact that recent sales show a bunch of properties selling over the asking price is promising. I don’t think we’re out of the woods yet, but at least the freefall in prices has stopped.

Apparently it’s for corruption and money laundering. Not bad for only 23 days in office.

Text of the federal criminal complaint against Cammarano.

Other NJ elected officials have also been arrested. Tim Karr has an excellent analysis of the situation.

This scandal is totally going to wind up as a Law & Order episode.

Based off my feedback, the developer of the almost-new 4BR has dropped the price to $799k. So an already good deal has just gotten better -$379 PSF is pretty unbelievable.

Just for kicks, I decided to pretend I was buying now and did the usual search through realtor.com for 3BR+, 2BA+ homes in Hoboken priced from $600k-$850k. And there are definitely more options than there were when I was looking in December, such as a a 1,700 SF 4BR/2BA for $699k, and a 1,795 SF unit for $760k. Both units are above $400 PSF, but why wouldn’t I go for the lower prices? Isn’t 1700/1800 SF adequate space for my family of four?

I certainly thought so when I was looking to buy in December. We narrowed down our options to our 4BR and a 1,728  SF 3BR that I was 99% sure we were going to buy. My realtor had to force me to go look at the 4BR because I was convinced it was too expensive and more space than we needed.

So why did I wind up going against the odds and buying the 4BR? First off, you have to actually see a space before you really know if it is going to work for you. We were just blown away by the huge open living room of the 4BR. Our immediate reaction was that it looked like a million dollar apartment (and since it appraised at $910k, we weren’t that far off). And we also loved the huge open kitchen, much larger than any other kitchen we saw.

And the 1,728 SF 3BR just looked small by comparison. The living room wasn’t as spacious (rectangular rather than square), the building was much older (about 10 years old) and with two kids, we would still be tiptoeing around trying not to wake them up (and since they goto bed at 8PM, that’s pretty much all the time). Plus we have a tendency to underbuy, and I don’t want to be forced to move yet again.

Since I work from home, I can deduct the fourth bedroom from our taxes as a home office expense (part of the mortgage, property taxes and utilities.) I liked having the ability to grow my business if I wanted to -I could easily install an employee in that room and have the person come and go via the separate entrance. Plus if your family lives far away and comes to stay for extended periods of time, it is perfect to have the extra room. My insurance agent keeps calling my 4BR a house since it is so large, but it is actually small compared to the suburbs.

This may sound counterintuitive, but I felt safer economically buying this 4BR even though it was more money than I wanted to spend. I am the kind of person who has backup plans to the backup plan, and when I mapped backup plans here vs in the suburbs, there were many more options in Hoboken.

1. Our $170k home equity loan. At a rate of prime + 1%, if we had to tap it at least the interest wouldn’t immediately bankrupt us.
2. Sell our car and rent out our parking spot. That represents about $400 month positive cashflow.
3. Rent out part or all of our apartment. That is much easier to accomplish here than in the suburbs, where you don’t have public transportation right to your door.

And then there is always the possibility of employment since I could easily commute to NY, NJ or CT, like many of my neighbors. I could take a part-time job once my kids start school and still handle the school dropoff and pickup. Even if I could find a part-time job in the suburbs, maintaining a second car plus commuting time probably would make it financially untenable. Distance and isolation were huge factors for me -I had visions of not leaving the house all winter because it is such a pain to have to drive everywhere with the kids.

My favorite cashier at the JC A&P is a really good dancer, who knew?

Everybody around here is cheering for Carol, I hope she wins American’s Got Talent!

It’s really weird to have a celebrity swipe my groceries, but I guess that’s America for you.