Tuesday Links
Prosecutors Detail Abuse in Brooklyn Girl’s Last Days [NY Times] The Brooklyn Griffin Finds a Perch [NY Times] As Pay Falls, Borrowers Lose Ground [NY Times] Town Houses With Condo Amenities [NY Times] Living In: Sea Gate, Brooklyn [NY Times] Shooting Kills Deliveryman in Gravesend [NY Daily News] Historic Old Fulton Buildings May Be Destroyed…
Prosecutors Detail Abuse in Brooklyn Girl’s Last Days [NY Times]
The Brooklyn Griffin Finds a Perch [NY Times]
As Pay Falls, Borrowers Lose Ground [NY Times]
Town Houses With Condo Amenities [NY Times]
Living In: Sea Gate, Brooklyn [NY Times]
Shooting Kills Deliveryman in Gravesend [NY Daily News]
Historic Old Fulton Buildings May Be Destroyed [Brooklyn Paper]
Bullet-Proof Vests for Jewish Patrollers [NY Post]
West Indian Parade Draws Millions To Crown Heights [NY1]
Photo by NY_Man from yesterday’s parade
The parade was all that.
Re: As Pay Falls, Borrowers Lose Ground [NY Times]
It’s called deflation. It’s ongoing and destroys asset prices.
“while housing prices have moderated, they really haven’t tumbled enough to account for falling incomes”
Prices are already destined to collapse further without drops in income. Now, falling incomes will compound the collapse before we reach bottom. It’s a death spiral. First nationwide, then here in NYC.
“…borrowers are less likely to qualify for a low-cost mortgage if their finances aren’t strong to begin with…”
Brownstoner commentors routinely complain about getting stonewalled by their lenders. It’s all part of the rejection process.
“Government programs have been encouraging lenders to modify mortgage terms for struggling borrowers, but critics have decried the slow progress of these programs, and the relief efforts are often temporary.”
Propping up the unproppable. Doing the same thing over and over again and expecting different results. Price: even bigger collapse.
“Mortgage executives say a typical homeowner stays in a home for about eight years…’Some people, even if they pay their mortgage every month, may not be able to sell their home without writing a check to the bank…Many people aren’t in position to do that,’ Mr. Retsinas said, ‘so they’re tethered to their house.'”
This is the essence of the buy vs rent calc. The risk of having to sell and realize a loss into the biggest real estate collapse you will ever witness. At least -37.5% here in Brownstone Brooklyn TM. You divide the risk of that net loss (likely larger than the nominal 37.5% after all maintenance costs, taxes and fees minus credits/rental income) by the amount of months you’ve “owned” the property and THEN compare to renting.
***Bid half off peak comps***