Condo of the Day: 535 Dean Street Penthouse Price Cut
Can you say Atlantic Yards Effect? There’s no other reason we can think of (other than that pesky global financial crisis, of course) to explain why this 1,400-square-foot penthouse at 535 Dean Street in Prospect Heights just had to cut its asking price from $899,000 to $799,000. In its current configuration, it’s also not much…
Can you say Atlantic Yards Effect? There’s no other reason we can think of (other than that pesky global financial crisis, of course) to explain why this 1,400-square-foot penthouse at 535 Dean Street in Prospect Heights just had to cut its asking price from $899,000 to $799,000. In its current configuration, it’s also not much of a family apartment either. Still, you’d think there’d be at least one childless buyer out there who would be digging the open space and views (and rather low monthyl maintenance of $701). What gives?
535 Dean Street [Corcoran] GMAP P*Shark
“Since you all seem to say no one is buying anymore, what else are they doing???”
I think many are currently sitting on the sidelines and holding on to what they have. If they bought 5+ years ago, they’re probably still smiling. If they bought within the last couple of years, they’re probably nervously hoping to hang onto their jobs to pay off their mortgage.
Most of those condos are sold to investors who will turn them into rentals when they discover they can’t flip them for a profit.
At lease renewal this year, I negotiated the rent on my smallish Brooklyn Heights two bedroom down to $2600 from $2700 (he had proposed renewal at $2750). My rent was already low since I’ve been in the place for two years. I pay my rent on time so he likes me well enough, but after we signed he said that a number of his other apartments in BH/CH/CG were sitting unrented for longer than he was comfortable with. I should have pushed harder.
If all these people are no longer buying homes as they have been for the last 8 years, won’t they be renting instead?
Seems to be that there will be the complete opposite of a rental glut coming up.
You gotta live somewhere. You either own or you rent.
Since you all seem to say no one is buying anymore, what else are they doing???
Fails to sell…cause it’s an ugly building in a not so nice location.
What is that on with the soffits in the kiving space, that is just ugly.
Rents fall? Yeah right. Prices are so high rent wont need to fall. They might go up a little more slowly (for a very short while), but since people will be buying at depressed rates, excess rental capacity will get taken up fairly quickly.
“There will be a rental glut”
The vacancy rate is less than 1% in nyc.
It will take a helluva lot more than a few condos (most of which are already half sold) to create a rental glut as you say.
Argyle is already 70% sold, Novo is almost 50% and I believe Crest is over 70%.
That leaves maybe 150 condos that might go rental.
Is that a glut in a borough of 2.4 million?
1:11 – Landlords lower rents all of the time for EMPTY apartments. Of course they don’t lower rents for existing tenants since they know it will cost you to move. But with every bank in NY in a hiring freeze, the chance of rents on 1 bedrooms in luxury buildings going up significantly over the next year or so is nil. More likely that rental prices will fall, especially in the big managed buildings where turnover is high.
So, to sum up, this place is still priced more than $100k too high.
A rent of $3000 equals a rough equivalent of a purchase price of $600K (with a maintenance of $700 per month, after tax benefits on the mortgage interest)
For every $500 per month more that you think it would rent for, add about $100K more to the purchase price.
So, if you think it would rent for $3500 a month, then figure the correct price is about $700,000.
If you think it would rent for $4000 a month, then it is now properly priced at $800,000.
I think it is still overpriced.