Hey - this is an article about me. I was looking to buy in Brooklyn but then did the math with insane brooklyn prices and said screw it. Now I'm renting an awesome loft in Financial district 3 minutes walk from work and couldn't be happier. A friend of mine bought a condo for just over a mil in Park Slope in 2007 and he's down almost 200k so far in market value. I can rent 5 years for that amount of money and I'm not even counting maintenance and interest that he paid over last 2 years. There is a huge disconnect between rental prices and condo prices with rental winning hands down.

Posted by: loty at October 13, 2009 10:57 AM in response to To Own or to Rent?

Just curious how this just unleashed glut of 'luxury' rentals will affect condo prices. Is there a parallel between falling rent prices and condo prices?

Posted by: loty at October 13, 2009 10:49 AM in response to 1,500 Rental Units for DoBro

Another condo building on 4th Ave? What are these people smoking?
Actually, 4th Ave might become an ok place to live in 5-7 years if they manage to drive off all the riffraff that occupies 4th ave currently and replace bodegas and car repair shops with trendy restaurants and shops. For 1/2 of the current insane prices obviously.

Posted by: loty at October 6, 2009 4:40 PM in response to Development Watch: 150 4th Avenue Rising

In the end it's all driven by the employment numbers and I don't see those recovering in the next year or 2. After 2001 recession employment numbers took more than 2 years to bounce back and we are not even done yet slashing payrolls. Add a glut of new condos and you get a pretty dim picture. No wonder real estate in NYC is tagged as depreciating asset by the banks these days.

Posted by: loty at October 2, 2009 11:17 AM in response to TRD Takes Brooklyn's Pulse

11217, what a load of horse manure. 99% of people in billyburg won't be there if they could afford a place in the city. Same applies to other fringe places (LI City, etc) where the only perceived value is in the proximity to Manhattan. So now take the only argument - cheaper prices - out of the equation and what do you have left? Either Manhattan prices have to rise dramatically or Brooklyn prices have to fall a LOT for parity to return.

Posted by: loty at October 1, 2009 11:57 AM in response to Condo of the Day: 125 North 10th Street, #NPHD

What equity? I can rent a better apartment for the money you spend on maintenance, interest payments and property taxes and invest down-payment money. What's your return on real-estate 'equity' for the last 3 years? -30%?

Posted by: loty at September 30, 2009 4:10 PM in response to Condo of the Day: 125 North 10th Street, #NPHD

Totally agree with Maly. Manhattan is now cheaper than Brooklyn and that's just insane. I just gave up on Brooklyn and moved back to Manhattan - what's the point of paying Manhattan prices (or more) in Brookyln?!? Maybe I'll pick something up in Brooklyn in a year when prices adjust to sane levels. If not I wont miss Brooklyn at all.

Posted by: loty at September 30, 2009 4:06 PM in response to Condo of the Day: 125 North 10th Street, #NPHD

There is a new trend actually - people who are out-priced in Brooklyn are moving back to Manhattan. I'm not making it up - I'm one of these people. Manhattan is actually cheaper than Brooklyn these days. Brooklyn needs to come to it's senses.

Posted by: loty at September 29, 2009 4:54 PM in response to Price Cuts at The Absolute

Bsquared - you mean like 50 years ago when everyone lived in a brownstone just like everyone else's brownstone and everyone was begging for some glass? I for one like new and glass covered buildings much more than dilapidated 100 year old crap houses that were never meant to live this long.

Posted by: loty at September 10, 2009 5:38 PM in response to Development Watch: 163 Washington Gets Glassy

I don't hate it either. Anything is better than featureless brick horror next to it.

Posted by: loty at August 13, 2009 2:37 PM in response to Scaffolding Down at Greenpoint's Pencil Factory

He's right in one thing - he is a cockeyed optimist with a double underscored cockeyed. I just call it in denial

Posted by: loty at July 20, 2009 9:45 AM in response to Jeff Levine: 'Cockeyed Optimist'

Wow - they actually sold 3 units!!!
I want to see these people

Posted by: loty at July 17, 2009 2:18 PM in response to The Elan Goes Partially Rental

Petebklyn - look at anything that closed in the last 3 months on streeteasy and compare to the original listing prices. 20% down at least in good neighborhoods like park slope, cobble hill, etc. Iffy places fell more. Even seller brokers tell you upfront that prices are very negotiable.

Posted by: loty at July 16, 2009 4:10 PM in response to Elliman: Brooklyn Market Improved in 2nd Quarter But...

Dave,
Nobody disputing what Kris is saying and we are all believers in owning your own property or we wouldn't be on this site.

I just disagree with completely irrational expectations of a quick rebound back to insane bubble prices. Did tech stocks ever rebound back to the 2000 prices? Will they ever on an inflation adjusted basis?

Posted by: loty at July 16, 2009 11:34 AM in response to Elliman: Brooklyn Market Improved in 2nd Quarter But...

Dave,
These artificially low interest rates will be gone as soon as economy shows any kind of anemic growth to mop up huge amounts of freshly printed moneys our friends in Washington helicopter in. Combine that with still rising unemployment and the fact that many wall street and media/advertising jobs in NYC are gone for good and it doesn't look bright for property values in NYC.

How about another little phenomenon of enormous amount of new condo construction that will be regurgitated at much lower cost basis and therefore prices after original builders default on their loans and properties repossessed and resold by banks at pennies on a dollar. It's just beginning to happen in Williamsburg and parts of Queens but will be very widespread soon.

Posted by: loty at July 16, 2009 10:51 AM in response to Elliman: Brooklyn Market Improved in 2nd Quarter But...

daveinbedstuy, I admire your optimism even if i don't exactly share it. Last time RE prices declined in brooklyn it took over 10 years in a good economic environment to get back to peak 1987 prices. We are still looking for at least a good year of declining prices across NYC

Posted by: loty at July 16, 2009 10:00 AM in response to Elliman: Brooklyn Market Improved in 2nd Quarter But...

Uhmmmm - what are these people comparing? The busiest months of spring to the dead months of winter? These numbers are the same every year due to the very seasonal nature of the real estate business in NY. They should compare numbers year over year - sales volume is down 29.7% and prices are down 27% from year ago on per square foot basis (the only meaningful metrics). Unemployment will also continue to rise in NY in foreseeable future and top 10% very shortly.

Still very bearish on real estate in NY.

Posted by: loty at July 16, 2009 9:42 AM in response to Elliman: Brooklyn Market Improved in 2nd Quarter But...

$3400 for 2 crazy bedrooms on 4th Ave in Brooklyn? I'm paying a lot less than that on UES in Manhattan and my new rent will be even lower.

These people need to wake up and smell the McDonalds downstairs :). $1500 at most

Posted by: loty at July 15, 2009 6:04 PM in response to Elan goes rental

Nothing wrong with studios and 1 bedrooms but definitely agree we need more condos for families to live in.

And what's up with 1 bedroom condos with 2 bathrooms - is that a norm now? Who is that for? Is incontinence that rampant these days? Or all these 1 bedroom condos are meant for roommate sharing?

Posted by: loty at July 13, 2009 4:56 PM in response to Details Leaked on 111 Lawrence Rents

Ok - the final tally is 1 for everyone else against. This puppy is going rental by the year end.

Been to that building - they don't even have anything real to show except for mockups and promises. 4th sucks bananas BTW. Yes it's a short stroll away from decent neighborhoods but there is absolutely nothing good about 4th Ave itself. Maybe some cheap booze and you can change oil in you car on the curbside if you speak spanish.

Posted by: loty at July 13, 2009 4:44 PM in response to 500 Fourth Avenue Sees Most Spring Contracts

I was waiting for this for some time now. As the article says bunch of developers actually went into foreclosure on their buildings. Next step would be banks selling these REO buildings to other developers for 50c on a dollar. New developers will have much lower basis cost and will be able to offer condos for much lower price driving all prices down. I think major price correction is just starting.

Posted by: loty at July 13, 2009 10:15 AM in response to The Epitaph of Epitaphs for Williamsburg's Boom

Why play idiotic games instead of just plain lowering prices to the point where your condos begin to sell? I guess they are not very interested in selling their properties or hoping 2006 is coming back. $400 per sqft sounds about right as a starting point for negotiations.

Posted by: loty at July 1, 2009 12:16 PM in response to Come On and Take a Free Ride (at Northside Piers)

I totally agree with IronMaiden. Elan was the only condo building we were literally laughing out loud when we saw apartments. I think they were designed by a drunk dude or a 3 year old. Not a single straight wall, bedrooms in a middle of living rooms, crazy corridors with 3 turns to reach bathrooms.
600k for that 1 bedroom monstrosity? Are you kidding me. I'm not even talking about 4th Ave (which is really just an extension of Sunset park with bodegas and car repair shops) and McD stinking up the place.
There are a lot of much much much nicer condos elsewhere if you just care to look.

Posted by: loty at July 1, 2009 12:06 PM in response to Checking in on The Elan

Please don't mention Elan to us. We saw a lot of condos but Elan was the only one that made us laugh outloud. I think the architect that designed it was drunk or they just payed $20 to some guy on a subway to design the units. How does a tiny bedroom in a middle of the living room sound? If you think that's impossible please visit Elan. Not a single straight wall. Bathrooms that have corridors with 4 turns. Impossible? Visit Elan. A classic example of how not to build.

Posted by: loty at June 29, 2009 10:23 AM in response to New condo?

Just spent a few weekends going though open houses in the Burg. Tons and tons of stuff for sale but many still pricing it as if it was 2007. And how about a $1000 maintenance on a 2 bedroom condo in a building with part time doorman, no gym, and no real amenities to speak of. Thanks but somebody has to wake up and smell the roses. I have time on my side - prices are going down big time.

Posted by: loty at June 29, 2009 9:57 AM in response to Rising Inventory Bad News for Burg

I don't know who can possibly like that stretch of 4th ave. We looked at bunch of condos on 4th and pretty much decided that 4th Ave is not worth it. If you familiar with Brooklyn neighborhoods 4th ave and 12th street looks and feels like Sunset Park and should be priced accordingly ~$200 per sqft.

Posted by: loty at June 25, 2009 6:20 PM in response to 500 Fourth Avenue 20% Sold; Opening in Fall?