How much money
I purchased my 3 story frame house plus full basement last year. I paid 800,000 for it- which considering how much work it needs, was top dollar for my neighborhood(I am in the landmark district of Greenpoint but my block is not landmarked-but the block is beautiful)- My question is, how to think about the…
I purchased my 3 story frame house plus full basement last year. I paid 800,000 for it- which considering how much work it needs, was top dollar for my neighborhood(I am in the landmark district of Greenpoint but my block is not landmarked-but the block is beautiful)- My question is, how to think about the practicality of sinking several hundred thousand dollars into it. I don’t plan to move for a long time, so this is my home, but, I don’t want to end up feeling like I’ve spent my money too unwisely- Houses in this neigborhood are primarily fixer uppers, and you just don’t see the numbers here, that you see in south Brooklyn. Thanks for any opinions.
I think that if you are going to be living in your home for at least 5 years you’ll be fine. If not don’t do all this work if you are stressed about the resale value. You’ll get some of the money back no matter what because $800k for a house is an amount that is still going to relate to the market as a whole and at this point that is still a good value overall (what could you get in Manhattan for that?)
Is it me or is it that anyplace besides Park Slope, the Heights, Carroll Gardens are “just not worth the inflated price”?
Let’s see, if we all waited for the RE prices to come down, we’d be able to afford…exactly what?
I waited and waited. I changed jobs and upped my education to a Masters and although I was doing very well, I was not a broker, atty, banker.
If I could have afforded to buy back then, I would have. And if I continued to wait on the sidelines, I would be priced out.
In the end, RE is a risk, one that can be hedged upon many factors.
Who ever thought the Gowanus canal would get environmentally better? But it is.
Who ever thought that the waste treatment plants would get upgraded to reduce their noxious exhaling? But they did.
Who ever thought that Big Oil would be getting sued for the oli spill under Greenpoint. But they are.
Give it time, even places like Greenpoint will get the make over and budget attention that are most likely long overdue. When the high rollers start moving in – which they will: watch the waterfront and gentrification. And then watch the prices CONTINUE to group upwards.
My friend (a lifelong Greenpointer) has stories about all the crises that were ‘dumped’ on his ‘hood, and he even said that the word from so many ‘special interest groups’ was often exactly what some of the grumps above say…’get out! don’t walk, run!” It’s a tactic to get people to sell so that others can get in… It’s troubling to see the snobby, super pricey nabes give out patronizing advice, while the towers and high-priced condos keep appearing.
Courage to all the small-time, first-time investors, who are looking for a long-term investment: which also adds value to a neighborhood.
And to Anonymous at April 26, 2006 10:56 AM, once you have your garden oasis, please don’t eat anything from the soil.
hello,
i know you are excited about your purchase, but i think you should consider selling, and not put any money into the house. Greenpoint is toxic. I lived there for three years and wish i had know about the oil spill before i moved in. To spend every dollar you have to live in a toxic, cancerous neighborhood seems crazy to me. Of course, all of NY is polluted, however you are in the epicenter. Get out while your property is still worth something.
Seriously, I might be somewhat abrasive, but you made a great choice.
Buying a home has emotional value. It can pay great dividends as well because it is a tangible investment.
I look forward to your next post about your renovation experience. Don’t take advantage of it because it only comes once in a while
Hopefully it’s the old lesson:
Beggars can’t be choosers.
Good luck trying to pawn off that over priced home to someone else
Anon 12:51- You are right on one account, its not necessarily constructive to try to get people to pacify me, I am tense about my choice. But, why you are assuming that I want to live in Manhattan is kind of weird, because I don’t. You seem kind of mean. I might have made a bad investment, ( and might have made a good one)and obviously putting my doubts out there encourages people like you to just loose it on people. So, you at least taught me a lesson
Anon 10:52 has major issues.
Your attempt to make me believe what you is like saying that the earth is flat.
Matchstcik is referred to the frame house as in the case of the great Chicago fire. A frame attached home is not worth more than what you have made it worth.
Guys like you who bought at $800K are desperate and feed the brokers.
The triple % increase in RE prices over the abbreviated time of 6 years should send signals to all that it’s those who are buying are at fault for paying those that are attempting to sell them.
Good for you original poster for buying your home, but nothing justifies overpaying for a home that is 100 years old and requires you to dump 25% of the purchase price to upgrade it.
Pulling out a mortgage for that much would have been equal to buying a home in Ditmas Park, where you have a 50 foot lot with plenty of space between neighbors homes and a smaller commute to the city.
The truth is you want to be in NYC and the location of the house satisfies your purchase (Though you question it and ask others to pacify you).
Just because the location is near the river opposite the city you dream of living in, shouldn’t be confused. In the end, shit is shit, and greenpoint is greenpoint, not Manhattan
Given the oil price rise (which is going to keep fluctuating higher and higher) watch the surge of more people wanting to live in the cities. And then watch the surge in interest in housing and RE, owner occupied. You’re set for that, so enjoy. I just don’t think that an investment as you’ve done is a bad thing. Greenpoint prices are rising just like everywhere else (e.g., the non matchstick communities). And as the area continues to gentrify, which direction will your investment move? Up, of course.
Short of an act of God or major terror, do we all really think that RE is going to dive so low that your house will be market rated as 200k? I just don’t think so. If it does, then most of NYC will suffer, not just your nabe.
To Anon 1:54 & 5:51, get real. Your smile can curdle milk. “You bought an attached matchstick”, idiot first-time home-buyers that have ruined this market”, “take a risk when you have nothing to lose”. I’m glad that there aren’t many people like you. Attached matchsticks that have been around for 100 years have lots to offer – except to snobs like you. And excuse me, but I don’t think that it’s the first-time home owners who have ruined the RE market. It’s people probably like you who pulled out all your $ from the stock market and dumped it into RE, buying and selling to make big profits. What do you suggest first-time buyers do? Oh, I know, just move far away where the RE prices are much lower. Things like commuting, jobs, family impact, fuel consumption don’t matter to compassionate people like you, do they?
Fact is, there really is no other choice. EVERYTHING is expensive. And there is no ‘affordable’ housing for middle class. Condos for half a mil as well. New development for low income and then market rate = housing crisis for the middle class. So, what should we all do? Oh, I know, move into your non-matchstick community and pay you rent from the 1980’s, right? Or what, 1.6-2.6 million for a house near you that isn’t also way over-priced? You know, when I see folks like you sell your non-matchstick for $300k, in today’s market, I’ll take you seriously. You’re just as $-hungry as the first time buyers you seem to sneer at.
To the original poster: Enjoy what you have, renovate with sanity, contribute positively to making your house/street/neighborhood better than it was when you moved in, and don’t let the puny, whiny gloomy-guses of the world bother you. You seem to really love the area you’ve invested in. That spirit makes a community live and grow.
Also don’t invite the snoot over for a cup of coffee – he’s too afraid of mingling with the match-stick people – which I think is a bit insensitive of him as things go.
I vented and I fell good.