Co-op of the Day: 449 9th Street, #2F

Your math is off again Tyburg. $2196 a month and that's before the tax deduction. This is about the going rate (maybe slightly more) than a comparable rental in Park Slope. The average according to that report last week for the neighborhood was right around 1900/2000 a month.

When you factor in the tax deduction, it's cheaper to own this place than to rent.

Down Payment
$77,800
Mortgage Amount
$311,200
Mortgage Payment
$1,671
Total Monthly Payment
$2,196

Posted by: 11217 at January 13, 2010 1:24 PM

20% is customary in a small co-op. Usually required.

And today, you could most definitely get right around %5.0. I know since my mortgage broker calls me every other day asking me if I want to refinance.

You can spin it any way you want, Ty but your $2800 number is totally bogus.

This is not a bad deal.

Yesterday's Brooklyn Heights 1 bedroom at $3200 a month with mortgage and maintenance is however a bad deal.

Posted by: 11217 at January 13, 2010 1:46 PM

"DIBS - 40 years in this place sounds like a treat!"

It's usually 30 years, and most people over that time are able to leverage up. 30 years is a few boom/bust cycles.

You'd rather spend the next 30 years moving from rental to rental trying to find a better deal because your landlord keeps raising the rent.

That sounds like fun when I'm 60.

Some people would like to stay put and have a home. Many many New Yorkers live in the same 1 bedroom they've lived in for decades. Not really so weird. If you're single (like 65% of New Yorkers are) why would you need much more than a 1 bedroom apartment?

Posted by: 11217 at January 13, 2010 1:49 PM

I just think that when things finally pick up in the real estate market (which they always do) this blog is going to become unbearable to read with people who were even more bitter they didn't buy than when we were experiencing the run up. Imagine when the market picks up and we have to hear about how Muffie missed the bottom.

This (and by this, I mean now and moving forward in the next few months for those who still think prices are falling) might be the best time in your life to consider a NYC home purchase if that's something you're interested in.

Think about it. Once prices level off and eventually start to rise, real estate prices aren't going to be crashing again for quite a while.

This apartment would have sold for 450K during its peak. You aren't going to see prices in NYC fall to Kansas City levels so keep in mind that this city is and will be expensive even after the bust is complete.

Posted by: 11217 at January 13, 2010 2:05 PM

Here's the thing Ty. While no one is necessarily predicting it, in 5 years from now, prices might shoot up again because construction in the city has practically come to a standstill and as more and more people move to the city, the housing shortage here will be even more pronounced. It's certainly shaping up that way.

Imagine....if the new owner landed this place for 375k and were able to sell it for 450K in 5 or 6 years (or whatever, I'm making those numbers up) that's an additional 75K to plunk down on the next place. Plus they've got the amount of the downpayment on this one in addition.

It would be easy to trade up to a 2 bedroom and then be set for life. Just getting the foot into the real estate door is the hard part and assuming you aren't in any rush to move and can buy and hold you can make money. If not, one expects that your salary will increase with time and you will be able to afford more home in 10 years.

Either way, it's a process, nothing is certain but if history has anything to say about it, prices will rise again. And probably more than anyone right now is predicting.

Posted by: 11217 at January 13, 2010 2:36 PM

"Seems you could earn almost as much sticking your $100,000 in a CD or savings account."

Clearly you haven't been paying attention to the 3 J condo sales in the past month which have sold for 200K more than they were bought for 2 years ago.

And that was DURING THE BUST!

You think you're gunna make that in a CD???

Posted by: 11217 at January 13, 2010 2:43 PM

I think you're off the mark, but I do understand you.

I just don't think you realize that NYC is the cultural and financial capital of this country (and some say the world). It is very expensive. No, it's not Tokyo or Hong Kong...some would say NYC is so much better than either of those cities. And Brooklyn is the "it" place to live right now.

But you know what...you'd pay 350K for a (slightly larger) 1 bedroom in nice areas of Seattle, Portland, Washington DC and Boston as well. This apartment is not outrageously priced at all.

As I said, the average Park Slope 1 bedroom rental costs $2000 a month. Given that this place costs about the same means that it's actually not off the mark...it's about right.

But certainly I agree with you that there are many places in this city which ARE severely overpriced. I just don't happen to think that this is one of them.

This is exactly the kind of place I would be interested in upgrading to in the next couple years. But I don't want kids, so I don't really have any desire to have more than a 1 bedroom apartment in my lifetime. I like living in a small, compact space and find that it makes life simple and enjoyable (for me). It also allows me extra money to travel, eat out a lot and do other things which I love.

Posted by: 11217 at January 13, 2010 2:54 PM

And the reason why I say 350K is because I'm factoring in that there might be some room for negotiation on this price. It might go for closer to ask...who knows...

350K would be a good deal for the buyer.

Posted by: 11217 at January 13, 2010 3:00 PM

Agreed, Ditmas.

Park Slope is not the best neighborhood to be speaking about here since it's one of the highest priced in Brooklyn.

I've seen really great 1 bedrooms for sale just a couple stops farther on the Q train from PS for 200K and even less.

Posted by: 11217 at January 13, 2010 3:05 PM

Agree Gem. And just to clarify...I never said yesterday that 9th Steet was bad, I just said that it's more heavily traveled than most PS streets.

And was pointing out that 2 million for a house on 9th Street was a buttload of $$.

I like 9th Street though and really like this apartment.

Posted by: 11217 at January 13, 2010 3:11 PM

BTW, According to Streeteasy...Unit 2R in the same building (also a 1 bedroom) was listed for $430,000 on 9/22/09 and went to contract on 11/4/09.

No idea what the sales price was/is but I'm guessing it was about the same as this unit size-wise.

3R sold for $410,000 in August 2009.

This one seems priced to sell according to these numbers....

Posted by: 11217 at January 13, 2010 3:16 PM

You only lose if you sell, BHO.

You come at the entire home buying process as if everyone is a flipper.

Some people buy to LIVE in their home. Your comments have become so useless, I don't even need to respond to them anymore.

You expect home prices in Brownstone Brooklyn to drop another 37.5%??

Are you on crack?

Posted by: 11217 at January 13, 2010 3:53 PM

So you think that when the crash is complete, this 1 bedroom in PS is going to sell for $245,000?

LOLOL

Keep dreaming.

Posted by: 11217 at January 13, 2010 4:06 PM

If prices fell another 40%, I think we'd see half the world try to get in on some NYC real estate action.

Posted by: 11217 at January 13, 2010 4:17 PM

"Not far fetched at all. I'll keep basking in reality, 11217."

But that's the point. You AREN'T basking in reality. Reality is that a similar unit in this building sold for 410K in August and another for probably about the same or more in November.

Your 37% PREDICTION is not reality. It's the musings of a half crazy person.

So far, you've been so wrong about this bust that I don't know why you think anyone here should listen to you.

REALITY is that this place is probably going to sell for close to ask, then you will pretend like it never happened.

Just like you do EVERY time actual data is presented.

Posted by: 11217 at January 13, 2010 4:27 PM

Dave,

We should have made it our 2010 resolution to ignore BHO.

Literally I think me, you (and sometimes antidope) are the ONLY people left who even bother to respond to him.

The rest have gotten smart and ignore him.

Posted by: 11217 at January 13, 2010 4:29 PM

Mopar has it right.

Park Slope is NOT a starter neighborhood unless you are willing to compromise (greatly) on size.

They just recently did a report somwhere which said that Park Slope is more expensive than Murray Hill, LES and Hell's Kitchen.

It ain't cheap, people.

Posted by: 11217 at January 13, 2010 4:39 PM

That doesn't surprise me More4Less.

As someone who not only used to live on the Upper West Side but works there currently, I think BK Prime is much nicer than the Upper West Side and Upper East Side.

I wouldn't live in Manhattan if I won the lottery. True story.

The Upper West Side used to be a nice place...now it's rather dreary and filled with Duane Reade's, Starbucks and empty storefronts. Can't stand it anymore.

Posted by: 11217 at January 13, 2010 4:56 PM

Tyburg,

The bulk of NYC housing is 1 bedroom apartments.

You seem to be coming from all of this from a suburban mentality.

If you are expecting your first place in NYC to be a 3 bedroom 1 and 1/2 bath rancher, then yes...you are never going to be happy with what you see here.

MOST of NYC lives in a 1 bedroom apartment, not a brownstone.

How much room does one person (and hopefully a girlfriend at some point) need? If you're still single, you won't be having kids for years, so why would you need more room than this??

All of my neighbors have been living in their places for 10, 20 and one of them 47 YEARS!! and guess what...they are all 1 bedrooms. Some single, some couples.

Posted by: 11217 at January 13, 2010 5:01 PM

M4L is correct.

Only about 36% of New York City residents own their home.

The rest rent.

Posted by: 11217 at January 13, 2010 5:06 PM

M4L:

Sure, there are nice blocks on the UWS side, but Broadway is like shopping at a mall in Anytown, USA now.

Almost NO mom and pops left. There are 3 Starbucks within 2 blocks of my office. It's grotesque what the UWS has become, if you ask me.

Clearly you are after the bargain though. I get it. Space for the family takes priority.

For me, loving my neighborhood was key and the #1 priority, and I definitely do not love the UWS. And actually the UES is my least favorite neighborhood in the 5 boroughs. Wouldn't live there if you paid me.

Posted by: 11217 at January 13, 2010 5:19 PM