Market Pulse: Bullish Words From a Broker
We thought readers would be interested to hear these thoughts on the Brooklyn market that a broker at a major firm shared with us via email a few days ago. The market truly is stronger than ever. It is really nutty in a good way now. There are almost constantly multiple bidders at or above…
We thought readers would be interested to hear these thoughts on the Brooklyn market that a broker at a major firm shared with us via email a few days ago.
The market truly is stronger than ever. It is really nutty in a good way now. There are almost constantly multiple bidders at or above full price now. Things are now routinely selling in a week to 10 days.
Obviously, a broker has a vested interest in perpetuating the perception that the market is strong, but it seems to be consistent with what we’re hearing anecdotally. Does this jibe with what others are seeing out there? Especially interested in hearing from brokers on this one.
My take on my limited experience seeing coops condos in my area.
And these are all small buildings I’m tlaking about – I would not generalize to elevator or larger or even medium sized bldgs.
Coops take much better care of outside and people who live there seem to take more pride.
Condos buyers (and may be because they are younger) take no responsibility – places are more litter filled, don’t pick up flyers, front of buildings begin to look shabby. They have ‘renter’ mentality.
I have sold at least four brownstones in the footprint of Atlantic Yards because the owners were convinced (erroneously, in my view) that post-Atlantic Yards depreciation was inevitable. Friends of mine who are brokers relate similar stories. It’s weird what’s happening right now.
So much mis-information! Most of the condos around Brooklyn (and Manhattan) are new and benefitting from R/E tax abatements and so have unusually low total maintenace costs. And being new, they also may have no capital projects costs (yet). Co-ops, more often older buildings, are paying full freight on R/E and have to have a healthy reserve fund for capital projects. The only part of the monthly maintenance in a co-op that is tax-deductible is the interest expense on the underlying mortgage (if there is one — most do have them, some bigger than others) and R/E taxes.
As to the price — most of the condos are new “luxury” buidlings, while co-ops range from Mitchel-Lama to Park Avenue — a wide range in terms of “average” so comparisons are moot.
“Who knows”: It’s possible that the market is overpriced, but it’s also possible that your expectations are over-reaching your capabilities. Maybe you simply can’t afford a house yet. And one day, when you can, you will look around and think the market is just right.
please sylvia, stop posting here. Too much reality and perspective is not good for the brownstoner crowd.
condo monthly maintenance costs are not tax deductible.
in a co-op, these charges are deductible.
here’s another reason and i guess my 75% figure was off:
“In New York City, 85% of all apartments available for purchase (and almost 100% of pre-war apartments) are in co-operative buildings.”
since this is a site about brownstones and loving old architecture, i think this quote speaks for itself in why i prefer a co-op over a condo.
i like pre-war. plain and simple.
they are moving into and purchasing condos because the new shoddy construction that is being built these days are, for the most part, condos…not co-ops.
quite simple, actually.
as i said though, to each his/her own. for now, the rest of the 75% of nyc homewners are on my side, so until your condo’s got numbers like that, i feel just fine about it.
Would the person who’s so happy to be living in a coop please explain why so many people are voting with their feet and buying condos? Why do so many people (smart, market-savvy people) eschew coops for condos? Are they all stupid? (Pride goeth before the fall..)