The One That Got Away
Harvey Araton, a sports writer for the Times, penned an epic tale for the paper’s real estate section this weekend about making peace with his decision to sell low in Brooklyn Heights nearly 17 years ago. According to Araton, he wrote the article as a form of therapy, since he’s often kicked himself for selling…
Harvey Araton, a sports writer for the Times, penned an epic tale for the paper’s real estate section this weekend about making peace with his decision to sell low in Brooklyn Heights nearly 17 years ago. According to Araton, he wrote the article as a form of therapy, since he’s often kicked himself for selling his family’s co-op in the busted early ’90s market: “It has been 16 1/2 years since we sold a two-bedroom apartment in Brooklyn Heights, en route to the suburbs and the birth of a second child. Actually, I should say that we gave it away: We lost about $80,000 on a $240,000 purchase made in 1988.” The current value of the co-op is around $900,000. Araton gets in touch with other people who sold in the building—which Brooklyn Heights blog identifies as 157 Hicks Street—at around the same time. “After reconnecting with our old neighbors, the other thought I am left with—and hope to hang onto—is that as much money as we lost, judging a period of life by the bottom line is the road to existential ruin…I suppose, then, that the closure I have been looking for might be in the realization that the apartment was never just an investment. It was a place to live,” he writes.
A Brooklyn Apartment Sold Too Soon? [NY Times]
Photo from Property Shark.
I could understand his regret if the apartment had been an amazing piece of real estate, one that he loved. But the apartments in this building aren’t that great. He should take it off his list and move on to his high school girlfriend or an old baseball glove. Middle age is filled with regret for some people.
I read this…
but whats the moral of the story?”
That if you run out of the city to the burbs you’re an idiot. What a whiny loser. I agree with benson. Don’t let the door hit you on the way out, asshat.
“If it is an investment, (and you are going to dwell on lost opportunity) then you have to evaluate it as such, if its a home then you have to evaluate it on those terms – but trying to have it both ways…is exactly the recipe that has destroyed so many peoples portfolios.”
QOTD
“the reality is, (although it is unstated in the article) is that in 1993 the writer bought another home whose value was depressed similarly to his BH apartment; and in the ensuing 16+ years that house enjoyed a similar (if not identical) run up in value AND he got a place to live that served him better than a 3rd fl walkup 2BR…..”
I will conceed that I agree with you on that point. Although it would depend where he moved. For example, I doubt that Lodi NJ experienced the same increase in prices as Brooklyn Heights over the same period. But in General I get your point.
Well you cant live in the place if you have to move cause of lack of space, job relocation, you hate the neighborhood etc…. in which case the whole exercise is a total waste of time.
If it is an investment, (and you are going to dwell on lost opportunity) then you have to evaluate it as such, if its a home then you have to evaluate it on those terms – but trying to have it both ways…is exactly the recipe that has destroyed so many peoples portfolios.
the reality is, (although it is unstated in the article) is that in 1993 the writer bought another home whose value was depressed similarly to his BH apartment; and in the ensuing 16+ years that house enjoyed a similar (if not identical) run up in value AND he got a place to live that served him better than a 3rd fl walkup 2BR…..
Therefore the guy “lost” basically nothing and his whole article is just a imbeciles view of RE (and life)
“Nobody wants to deduct costs from the run-up.”
Thats because it is called cost of living. You have to pay to live somewhere- rent, real estate tax, whatever. You can’t live in your S&P stock potfolio…
I agree with fsrq. Nobody wants to deduct costs from the run-up. An RE trade and/or money in S&P (especially now while stockmarket manipulation lasts) would have more or less broken him even.
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As I said yesterday, HOLDER’S REMORSE will be similar in magnitude but opposite in sign.
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newsouthsloper no wont concede cause my math holds up – if you use the more realistic 800K selling price the gain is 560 – you then have to subtract the taxes and maintenance which is conservatively 160K over 16 years so the TRUE gain is 400K vs. 330K in S&P – fairly close especially since you are assuming that the coop had no assesments, no repairs and sells with zero upgrades in 16+ years and no brokers fee.
the point is – the difference is infinitesimal.