A Red Hook Townhouse for $270,000? Yessiree Bob
It’s hardly a Pierrepont Street mansion, but a house in Red Hook was recently snapped up in foreclosure for the cool price of $270,000, less than half of what the bank was into it for. According to ACRIS, the 2,100-square-foot vinyl sided property went into contract on November 16 and closed on January 29. The…
It’s hardly a Pierrepont Street mansion, but a house in Red Hook was recently snapped up in foreclosure for the cool price of $270,000, less than half of what the bank was into it for. According to ACRIS, the 2,100-square-foot vinyl sided property went into contract on November 16 and closed on January 29. The lien on the house had been $598,021, according to Property Shark. How big a deal this was is unclear though: The place looks like it could use some serious work and the house next door looks like it’s about to fall down. Was this a good buy or not? GMAP
“I know that BHO and others are convinced the ‘mutant asset bubble’ has a long way left to deflate, but I’m not convinced it’s going to come down anywhere near what they’d like. I just don’t see occupancy rates dropping low enough, nor do I expect all the government incentives that favor of ownership to suddenly disappear. As a result, I think the improvements we’ve seen in the last 20 years across Brooklyn [call it gentrification, if you wish] will endure – and so will a hefty percentage of real estate values.” – parkedslope @ 11:50
Your argument does not convince me at all (no such argument exists!). Occupancy can be absorbed by renting which is cheaper than a few years of buying and selling into and out of this long L-shaped bear market. Gov programs expire in April. The last 20 years of improvement were based on an inflated money supply which is now deflating. I won’t speak on the “improvements” but the paper appreciation will continue to undo itself with impunity. Half off is an easy call given the 3x income (falling) and 10x annual rental (falling) fundamentals. This property fell in half. Stuyvesant Town in Manhattan fell in half. There are others. The median price can run but it can’t hide. Another -37.5% to go from here.
“Executive order to forclose on all the failing(non-producing) loans held by fanniemae/freddie mac.” – Legion
Dead center. This is key to a housing recovery. Eat losses and start over. Unfortunately, housing is and has been in the driver’s seat of this economy. Everything else is ridin’ shotgun. That’s why it gets so much attention from Obama/FED.
***Bid half off peak comps***
I love Red Hook- I think its one of the more interesting neighborhoods. I think if you bought for RE value is probably crying right now, but I think it is still up and coming. I don’t think Bed-Stuy has peaked- I do think many neighborhoods will slow down and scale back, but they ar still good places to live.
Personally I really like Red Hook. The cafes/resteraunts/Fairway and the Pier are all great places to hang out at.
Am not so sure I would buy a place there because of the same fear I would have buying in Bed Stuy – I believe the nabe has peaked and now the prices are coming back to reality. Anyone that has bought in RH and plans to stay, I wish them all the luck – I just hope the nabe stays safe and viable.
A “bufflehead” is a kind of duck.
I’m going to guess that a “swingle” is one half of a swinging couple. A single swinger. Swingle?
how far is this place from Steve’s key lime pies?
which way is the block transitioning?
never said there weren’t good things but like the young child in The Emperor’s New Clothes, I don’t buy the neighborhood hype or hubris the locals are constantly serving up. And I think Stoner showing some wise discretion by doing the same.
and where exactly is this mythical red book bike path? i’ve been hearing about for ten years. is it like Brigadoon- magically appearing for track bike riding, moleskine journal toting trendsetters on their way to a book reading at Sunny’s?
The only two off-street bikes paths near RH are on Columbia Street – north of Degraw Street and south of Beard Street. There’s also Erie Basin Park, but I thought all the locals boycotted Ikea.
Mshook,
What’s a bufflehead?
What’s a swingle?
“This is a transitional block with good potential.”
Rewrite:
If I don’t get shot on the way home, in twenty years it might be worth what I paid.