Condo of the Day: 70 Washington Street, #7L
This seventh-floor two-bedroom condo at 70 Washington Street in Dumbo just underwent a price reduction from $1,465,000 to $1,398,000, bringing it in line with the asking price on the same apartment on the fifth floor. The $900-per-square-foot asking price is about par for the course in this building right now, though we’re not sure anyone’s…
This seventh-floor two-bedroom condo at 70 Washington Street in Dumbo just underwent a price reduction from $1,465,000 to $1,398,000, bringing it in line with the asking price on the same apartment on the fifth floor. The $900-per-square-foot asking price is about par for the course in this building right now, though we’re not sure anyone’s actually getting that. By comparison, you can rent a that fifth-floor place for $4,900 a month.
70 Washington Street, #7L [Halstead] GMAP P*Shark
The kitchen is already beginning to be out dated, plus I think it ugly anyway.
The building and area are good, the layout is that same old crap, Kitchen, Living Room all one big room, yuck ! hardly any place for a comfortable table.
Looks more like a 2 room apartment with a huge walk in closet they call an office, since there is no window.
thumbs down for me.
…forgot to add the answer to your question: in 2006, after selling a place in PS for a nice profit, I looked at renting – amazingly, although I am a bull by nature, I thought the bear arguments on Brownstoner were sadly correct & that a market correction was in-store. However, once I began looking at Manhattan rents [I figured if I was going to become a bitter renter, I might as well become an angry Manhattanite too], I realized I could pay less per-month on mortgage + maintenance for a very nice center slope 2BR with roof deck, fireplace, w/d, 1 1/2 baths, etc. Yes, I have a nice chunk of cash tied-up in the downpayment & various renno/ownership costs, but the mortgage tax deduction makes the deal much, much cheaper for me in the long-run. Besides, with any luck, I intend to weather the current storm – like most people I know in the ‘hood – in my comfy little home!
So long story short: I did a straight comparison of monthly rent vs monthly mortgage + maint. [calculated at 20% down, 5% +/- rate] Eventually, I do some math about the tax deduction too, but I prefer focusing on the basic numbers. I think if you do that simple math, you’ll find that $4900/month would buy you a lot more than a $588K apartment – even in 2003!
@BHO – I’m a bit confused: are you saying 2003 prices are the norm? Having lived in NYC a good bit before that, I’d say 2003 prices were already pretty steep compared to the early 90’s…
Besides, you should know better than to quote the NYT real estate section and its anonymous ‘brokers and investors.’
I know ‘half-off’ is your name, but as I’ve written before, if prices in NYC actually drop 50% from current levels, it will mean the national economy is in free-fall & we’ll all have much bigger fish to fry…
1.4M and you have to look at that ugly wire mold on the kitchen ceiling!!!
Would it have been too much to throw up a 2-5/8″ stud and sheetrock?!?!?!?
Or at least painted the damn thing white!
It’s a well known number, parkedslope. Even in bullish circles like the New York Times RE section.
“…some buyers have been willing to pay as much as 12 or 14 times the current rent roll in Manhattan. That is not the norm, however. The more typical range in recent sales in Manhattan is 9 to 12 times the annual rent, brokers and investors say.” – For Rental Buildings, A Rising Market; NYT RE, October 5, 2003, Read more – http://www.gmaloneco.com/oct5nyt.htm
It’s been only 6 years but nobody wants to remember the fundamentals.
“The concept of ‘multiple of the rent roll’ is a standard way of speaking of sale prices in rental buildings in New York City…if the average rent is $1,000 a month in a 60-unit building…At 10 times the rent roll the same building would sell for $7.2 million.”
See, I didn’t pull this number out of my ass!
“Another factor in the current market [circa 2003], active buyers say, is that in recent years some wealthy individuals have found real estate more appealing than the stock market as a place to invest…”
I wonder why! Oh, the MAB was born [awww, it was so cuuute then!]
“‘Equity financing is easy to come by’, said Eric S. Margules, principal in Margules Properties, which has bought four Manhattan buildings in the last two years.”
EZ $$$. Remember the liar loans? Nobody turned down?
Now back to you, parkedslope…
“high-end rental prices are not in-line with sales prices – they are typically far higher [other way around as clarified @ 2:31].” – parkedslope @ 2:30
Typical for what range of time, 2003 to date? Yeah, that’s what a bubble is!
“If you actually live in NYC – and take the time to read/post on this site – you should know that.”
I actually live in Newwww Yawwwwk and have been a longtime lurker/poster here on brownstoner and know that the market was nothing more than a giant, worldwide, ponzi scheme with Price/Rent ratios approaching 20 or worse. That’s one of the reasons why I’m calling half off.
Tell me (you and DIBS), exactly how do YOU valuate a sustainable home price?
***Bid half off peak comps***
$900/psf for this place?! hahahahhahahahahahaha.
to clarify: sales prices are typically far higher than rents.
@BHO: not interested in taking-sides, but where do you get ’10 is normal?’
In my experience, these simplistic rules-of-thumb are pretty much worthless in NYC which is unique for having so many committed long-term renters [as opposed to the ‘American Dream’ of home ownership which prevails elsewhere]. As a result, high-end rental prices are not in-line with sales prices – they are typically far higher.
If you actually live in NYC – and take the time to read/post on this site – you should know that.
DIBS,
Simple price-to-rent ratio. 10 is normal and fundamental (like 3 x median income). Bubbles always collapse to intrinsic fundamentals. It’s a lesson in history, not smoke/mirrors with T-bills.
***Bid half off peak comps***