Bob “I Barely Broke Even” Menendez
“He [Bob Menendez] said that after mortgage, taxes and insurance, he just about broke even.”
In 1983, Bob Menendez bought a house at 535 41st in Union City for $92,000. In 2003, he sold the property for $450,000.
During his period of ownership Menendez rented the property out, initially for $3,100, then $3,200 and finally for $3,400 per month. That’s a minimum of $376,800 in rental income for the 10 years, assuming 8 years at the lowest rental rate and one year each at the higher two.
The average mortgage rates in 1993 ranged from a high of 7.53 to a low of 6.59 percent. Let’s use the highest average rate and round it up to an even 8 percent. In order to calculate the highest possible mortgage payment, let’s also assume Menendez borrowed the entire purchase price of $92,000 and took a 10 year mortgage. That would bring his mortgage payment to $1,116.21 per month., for a total of $133,945 in mortgage payments.
In 2003, the average cost of insuring a home in New Jersey, including contents, was $585 per year. Of course, Menendez wouldn’t have needed the contents insurance, but let’s assume this higher level of coverage and round the cost up to an even $1,000 per year. Menendez’ total cost to insure the property for the ten years would be $10,000.
According to Hudson County property tax records, Menendez would have paid a tax of $8,614.88 on the property as of 2005. While Menendez wouldn’t have been paying that amount during the ten years he owned the property (property taxes have been increasing by about 7 percent per year), let’s assume he did. Tens years of property taxes at this rate would be $86,149.
So, under the worst case scenario Menendez shelled out $230,094 for his mortgage, insurance and property taxes and on the revenue side he took in total of $826,800 from rent and property sale proceeds. That’s a minimum gain of $596,706.
You have to ask yourself, why would Menendez claim he barely broke even on this property when it’s pretty obvious he did quite well for himself? For the answer to that, read the rest of the story.
Additional Posts:
Menendez: You Put Your Hand On The Bible
Another Menendez, North Hudson Community Action Center “Coincidence”
Bob Menendez Digs A Deeper Hole
Bob “I Barely Broke Even” Menendez Busted
Menendez Sets Off Ethical Alarm Bells
Menendez: You Put Your Hand On The Bible
MenendezBob Menendez: The Early Years
In 1983, Bob Menendez bought a house at 535 41st in Union City for $92,000. In 2003, he sold the property for $450,000.
During his period of ownership Menendez rented the property out, initially for $3,100, then $3,200 and finally for $3,400 per month. That’s a minimum of $376,800 in rental income for the 10 years, assuming 8 years at the lowest rental rate and one year each at the higher two.
The average mortgage rates in 1993 ranged from a high of 7.53 to a low of 6.59 percent. Let’s use the highest average rate and round it up to an even 8 percent. In order to calculate the highest possible mortgage payment, let’s also assume Menendez borrowed the entire purchase price of $92,000 and took a 10 year mortgage. That would bring his mortgage payment to $1,116.21 per month., for a total of $133,945 in mortgage payments.
In 2003, the average cost of insuring a home in New Jersey, including contents, was $585 per year. Of course, Menendez wouldn’t have needed the contents insurance, but let’s assume this higher level of coverage and round the cost up to an even $1,000 per year. Menendez’ total cost to insure the property for the ten years would be $10,000.
According to Hudson County property tax records, Menendez would have paid a tax of $8,614.88 on the property as of 2005. While Menendez wouldn’t have been paying that amount during the ten years he owned the property (property taxes have been increasing by about 7 percent per year), let’s assume he did. Tens years of property taxes at this rate would be $86,149.
So, under the worst case scenario Menendez shelled out $230,094 for his mortgage, insurance and property taxes and on the revenue side he took in total of $826,800 from rent and property sale proceeds. That’s a minimum gain of $596,706.
You have to ask yourself, why would Menendez claim he barely broke even on this property when it’s pretty obvious he did quite well for himself? For the answer to that, read the rest of the story.
Additional Posts:
Menendez: You Put Your Hand On The Bible
Another Menendez, North Hudson Community Action Center “Coincidence”
Bob Menendez Digs A Deeper Hole
Bob “I Barely Broke Even” Menendez Busted
Menendez Sets Off Ethical Alarm Bells
Menendez: You Put Your Hand On The Bible
MenendezBob Menendez: The Early Years
Posted by Enlighten-NewJersey @ 1:04 PM
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4 Comments:
Another appropriate title for this would've been:
"Trying to Keep a Straight Face Part III."
Bob Menendez has been getting hammered and it isn't even September yet. It will only be a matter of time before we see that infamous temper of his.
The article says 1983 is when he bought the property.
The rent seems a bit high for that area in 1994, but I'm not familar with comerical rents in that area. It would be interesting to see the rent the law firm was paying before North Hud son Community Action Corp. rent started in 1994.
The point is Menendez did not just barely break even on this deal.
Star Ledger's Paul Mulshine investigated the Menendez property and declared it " A DUMP " !!!
Mulshine research showed Menendez was charging three times the amount area properties were renting for.
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