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.
what if I get fired and leave my rental and move to Hawaii.
What if you get fired and get stuck in NYC with no job and crazy maint.
what if I retire and move to south east asia and eat fish.
what if you retire and stay in your shitbox condo.
12:15…that’s the most foolish thing I’ve read on this site in, oh, a day or two…always amusing how stupid people are…unless this is a joke…which it has to be…EVEN renters aren’t THAT stupid!!!!
renters are fools.
plain and simple.
what if my rent is lower than your maint?
I said ALMOST no housing costs, 12:07. I love how you misquoted me.
And yes, there will be mainenance on my property.
But you still didn’t answer the question.
Where are you coming up with the rent 30 years from now on your fixed income?
Hope you’re saving about 500K a year to get you through old age.
Renters have no thought to their future.
That’s why they rent. They only think about the here and now. Not a good way of thinking since the average life span is increasing as we speak.
11:54 bring up a VERY good point. People who are buying homes now are thinking about years down the road and are not so quick to brush aside the thoughts of a stable life for the long haul.
$15 martinis and $500 Manolo Blahniks might be fun today, but they really won’t come in quite as handy when you’re 80 sitting in your 10K a month studio in Ocean Hill.
11:54 – if you think you’ll have “no housing costs” maintaining a 30+ year old home you are delusional.
BTW – as alluded too in the article – the condos (decried over and over here) on 4th Ave in Brooklyn appear to be selling steadily – not a prediction on price drops (I expect some and maybe substantial) but clearly there is demand which may mitigate the effect of tightening credit and rising unemployment.
I agree with 12:00 #1.
And 11:54.
11:54:
I like the cut of your steak! Good question…