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.
11:54…but of course social security can be relied upon for that!!!!!???
dave: thanks for pointing out the obvious. No way the carrying costs would be that high on a $350k place (even factoring in mortgage insurance)
New York city rents are high, so at some point people get forced into buying because the monthly with the write off is cheaper, and it keeps your monthly output at the same place as rents rise. Also, it’s a forced savings plan which most need.
NYC real estate in the short run, the mid run and the long run will always be a great investment. wherever you buy.
What people are not realizing is this…
When you pay off your mortgage in 30 years…in my case at the age of 60, the rest of my life…perhaps 20 or more years I will have almost NO HOUSING COSTS.
When you want to talk about the benefits of renting over owning, you need to factor in that you will be renting for an additional 20-30 years beyond the time most of us will have finished buying a house.
Please explain to me how you plan to afford what will be approximately a $15,000 rental for a 2 bedroom in the year 2038 on a fixed income???
only someone who is fearful about their neighborhood and property value would come on here and tout it like you just did 11:47.
not to mention that you’ve written that EXACT SAME COMMENT on many other threads.
50 million dollar pool and all.
Ever heard of a little place called Prospect Park, btw?
I’ve been to your “waterfront” area. It’s open odd hours and has two saplings, they pawn off as trees.
I don’t know how you get to $3250 in monthly mortgage payments on a $425,000 cost even if CCs are $500 (High) and taxes are $200 (High). $3250-700 = 2550 which at 6.5% would be on a mortgage of $410,000…only $5,000 down?? I think not. With 20% down, the mortgage would be $340,000 and the payment (at a conservative 6.5%) would be $2149 with estimated $500 CCs and $200 tacxed (Idoubt for a $425,000 condo they could be much higher) the total monthly payment would be $2849.
Could the original poster help with the details???
williamsburg is the best bet for long term investment. it is the closest neighborhood to midtown and most of manhattan in Brooklyn. has jaw dropping views, tons of amenities that the rest of brooklyn lacks – especially culturally (art galleries + music venues by the dozens) – best restaurants, salons, clothing shopping, furniture shopping and in williamsburg proper – no housing projects.
also, rental prices are through the roof in williamsburg. so, buying a condo is a safe bet because you can always rent it out.
this being brownstoner, not sure that the majority here understand the waterfront boom that is coming to williamsburg. the entire waterfront area will be developed including parks, athletic fields and public open space.
add to this, the 50 million – hello! million! dollar pool renovation.
now, if living next to the cities BIGGEST bloody housing project in fort greene/dumbo/clinton hill sounds better to you… be my guest.
11:22 here. I’m not against buying. I’ve purchased a few places in my life. Just sold a place in Europe. The reason I sold was the market had reached a high point and it was time to take my money out.
But what sense does it make to buy a place with a huge net loss compared to renting? If you got into financial problems like a job loss, you could not unload the property by renting it and you probably couldn’t sell it either at what you paid. Therefore, in my very humble opinion prices in NY still have a lot of adjusting to do. But like always the banks created this boom and their lack of capital to loan out will create the correction.
11:26 the speculators are in Brownstones as well. Clinton Hill Bed Stuy and Prospect Heights are high risk. Look up some of the mortgages that have been taken out the past couple of years on some streets t=you like in those areas and you will see lots of interest only Arms and crap like that.