Co-op of the Day: 26 South Oxford Street, #1A
26 South Oxford Street must have been quite a pad when it was originally built. The limestone facade is beautiful indeed. It’s a little less impressive on the inside these days, where the former mansion has been divided into apartments. A garden floor duplex has just come on the market asking $1,150,000. The lower level…
26 South Oxford Street must have been quite a pad when it was originally built. The limestone facade is beautiful indeed. It’s a little less impressive on the inside these days, where the former mansion has been divided into apartments. A garden floor duplex has just come on the market asking $1,150,000.
The lower level faces the rear (and thus benefits from a private garden) while the garden level faces the street. While the lower level has been gut renovated, the garden floor still has enough original detail to conjure an old-world vibe. What do you make of the pricing?
26 South Oxford Street, #1A [CORE] GMAP
This really does not make sense on many levels.
1. It is a Co-op
2. The Financials for this building is like lifting a band aid to reveal bad scare.
3. The hallways need painting and new carpet.
4. The command charges are ridiculously high.
5. It is a Co-op w/miserable other shareholders.
But, the exterior is beautiful and the location is prime.
” WHY rates are going up makes all the difference”
If your house is worth 1,000,000 at 4% and rates go up to 6% the value of your house is now 780,000.
For every 1% rise in Interest Rates the value goes down by 11% in value.
Like I’ve said in the past, people cannot grasp basic mathematics.
The What
Someday this war is gonna end..
“What do you make of the pricing?”
What do you think when The Fed raises interest rates latter this year?
The What
Someday this war is gonna end…
Hold on a minute – Unless my detective powers are waning, this isn’t a parlor floor/garden duplex. It’s garden floor/basement combo. The ceilings on the upper floor are low and the windows have bars on them (which the exterior photo shows only existing on the ground floor). This explains why there are no windows on the lower floor except at the back, which is totally below grade. Mind you, if it was the real deal, it would probably be a lot more expensive.
“Now, during that time, 30 year Mortgages went from 6.41% to 3.66%”
And Housing prices went up because lower interest rates = higher prices.
“If by your logic that Prices come down when Interest comes down,”
I think your suffering form Attention Defect Disorder, you need to re-read my comment until you can understand it.
“So, if housing prices comes down with Interest rates going up AND housing prices comes down when interest rates goes down.
Please do me a favor, get a calculator and do some basic Math.
The What
Someday this war is gonna end…
I hate to tell you, but housing prices peaked in 2006-7 and fell for the next 6 years. Here is the Chart: http://www.economist.com/blogs/graphicdetail/2014/02/us-house-prices
Now, during that time, 30 year Mortgages went from 6.41% to 3.66%. Here is the Chart on that: http://www.freddiemac.com/pmms/pmms30.htm
If by your logic that Prices come down when Interest comes down, then how do you explain that housing prices came down when interest rates came down for 6 years?!
So, if housing prices comes down with Interest rates going up (your comment above) AND housing prices comes down when interest rates goes down…..
I think you can connect the logic here, no?
“markets aren’t defined by ‘basic mathematics.’”
No comment necessary…
The What
Someday this war is gonna end…
And in the future…
The What
Someday this war is gonna end…
“A buyer will have locked in a rate before that. It will have no effect on their payments.”
But the value of the house goes down in a higher interest rate environment.
Some people are unable to grasp basic mathematics.
The What
Someday this war is gonna end..