Condo Market: You Can't Handle the Truth!
“The truth is that people can’t take the truth,” Robert Levine, the president of RAL Cos., is quoted as saying in a Sun article about how the city’s condo market is (brace yourself!) not as healthy as it once was. The point of the article seems to be that though the press has instilled “fear”…
“The truth is that people can’t take the truth,” Robert Levine, the president of RAL Cos., is quoted as saying in a Sun article about how the city’s condo market is (brace yourself!) not as healthy as it once was. The point of the article seems to be that though the press has instilled “fear” in people (another Levine quote) about the value of real estate as an investment, condos are still worth buying because the city’s market will eventually rebound. Here’s the evidence the story gathers about condo sales slowing: financing is shaky (“As transaction volume dries up, and liquidity remains nonexistent, property values will fall, and banks will begin foreclosures,” say Kevin Comer, the president of Beck Street Capital. “The kid gloves will come off, and it won’t matter if you own property at Fifth Avenue and 58th Street or Williamsburg, the banks will be brutal as they all struggle to survive and avoid Bear Stearns fate. The busted condo deals will be the first to fall given their short term financing.”); a ton of prospective buyers are lowballing offering prices, says one developer, which means inventory isn’t moving unless a sponsor’s willing to make a deal; after buzz fades on a condo that’s just put up listings, sales are languishing, says Gary Malin, the president of Citi Habitats. So wait, what’s the truth that we can’t take? Oh, right—now (or very soon) may be the time to buy. “Now more than ever its location, location and location,” says Beck Street Capital’s Kevin Comer. “Long term, real estate remains a great place to invest capital, especially in New York City, and we are headed for one of the best buying opportunities of my lifetime.” Consider yourself truthified.
Believe It: Condo Sales Slow [NY Sun]
Still from youtube.
12:43 – you are making the same mistake that many make here – the question of “which makes more financial sense – owning v renting” is an ECONOMIC one – it is simply a matter of adding up all the costs of both and figuring out which is higher – there is a definitive answer.
Issues like having to move or the inability to renovate for example are genrally not economic issues (except for the direct costs of a move for example) but lifestyle ones – and while certainly valid, everyone has different desires/tolerences etc… and therefore there isnt a definitive answer.
i’m in contract on a new condo and can’t wait to close and move in… the cost of my sublet (in greenpoint, yeah, greenpoint!) is hundreds more than my monthly costs are going to be after i move into the sexy new condo. i really don’t get why people rent in this town. sure, i did the first year i moved to brooklyn, but bought as soon as i could, more than doubled my money, and now i’m trading up. not to be harsh, but renting is for losers. especially those out there who can afford to buy and don’t because they think they’re going to strike the market at just the right time…too late suckers.
Who’s Jerri Been?
Biff where’s jerri been??
Thanks Dave, I can’t believe I didn’t specifically mention the #1 argument for renting! Personally, I agree 100% that it makes sense in the long term to buy, but I’ve been a renter before (sold a home in one city and rented initially when I relocated to NYC) and I can appreciate that others have their own reasons for renting vs. buying.
However, 12:43, I agree that it makes sense for someone currently renting to continue to do so if they are confident housing prices are going to fall 20+% – however, it wouldn’t make any sense, in my opinion, for a current homeowner intending to stay in the city long term to sell under such conditions.
Seriously…the renters on this blog sound like they are missing a chromosome.
12:41…you are going to ask your landlord to lower your rent or move???
yeah, that sounds fun. move every year.
what a nice life you have set up for yourself.
Biff – you forgot to add – when housing prices are going to fall 20+% – then it definitely makes sense to rent.
Additionally, it’s best just to rent a place to keep a mistress or a gigolo (or whatever you want to call them) as opposed to buying something for them. They tend not to last that long anyway. HOWEVER, if they are to be replaced eventually then yes, for the long term buy a place. It’s the only logical thing to do.