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
5200/mo rent = under a million purchase price (depending on maintenance, interest rates, opportunity costs, etc). Where can you find a 2 BR Manhattan doorman apartment for under a million?
These rental prices may be silly, but the purchase prices are sillier.
Jimmy Legs — Ratner contemplated including the Newswalk Building in the AY plan, but reasoned it would cost too much to buy everyone out (using the threat of eminent domain, as happened with nearly everyone except for the notable examples). For reason, there’s an odd bite out of the footprint in the middle — the whole block was spared his clutches.
For obvious reasons, a lot of people in the Newswalk Building are vocally opposed to the plan.
Could someone explain why paying money called rent to a landlord is “throwing it away” but paying money called interest to a bank is “investment”? They look exactly the same to me.
The difference between renting and owning is elsewhere.
First, if you have a self-amortizing mortgage, you could think of the principal payment as a forced savings plan that forces you to invest in an undiversified asset you are already invested in. That could be useful if you have no other way of saving in a more sensible way, but most people in the income brackets necessary to buy at these prices should have better ways to save/invest.
Second, owners take more of the risk or gain the benefit of future price changes. In a rational environment, owners might expect to be paid a bit for assuming this undiversified risk (i.e., it should be cheaper to buy than rent). But given current prices, it is clear that anyone buying today is PAYING for the privilege of making a risky investment (it is much more expensive to buy). This is the usual sign of a bubble: people have decided that there is no risk and therefore don’t demand to be paid for it, which, of course, means that there is a great deal of risk indeed.
Anyone buying today should assume that they would be financially MUCH better off if they rented and saved and waited until rental and purchase prices get more in line. This is not 2001.
I don’t agree that it’s an ugly building, but do agree that that area is somewhat down trodden. I looked at the building prior to construction, and just couldn’t commit to the area. At the time I lived on a nicer block in Prospect Hts, and thought that even there wasn’t so great.
this layout would work for a single / couple wanting a loft space, but similar spaces exist in williamsburg – the Gretsch has terrific apts just like this – without the upcoming headache of AY. I know a couple of people in that building, and an apartment like this would definitely rent around $3500.
if this owner could re-work to make a 2 bedroom, would probably sell then, or rent for a decent amount.
as a poster noted above, there too many sitting on the sidelines right now too.
lol 5:19 my old tenant in PH did the same. When I raised her rent 2000… she didnt renew and purchased in jersey.
I agree…once my rent was about to go past 2000 a month…I was like…OH HELLZ TO THE NO. I am not paying that shit to someone else anymore.
those manhattan rents are astronomical.
keep in mind those are averages. HALF rent for more than those numbers.
2 bedroom doorman for 5200???
what the hell.
you are throwing that much money a month down the toilet to a landlord.
you renters are REAL suckers.
you can buy a whole brownstone in south slope for a mortgage of 10K a month and rent out a floor for 3K a month.
Aburd to spend that kinda money on rent.
Count me among the renters who is too young to have gotten in during the boom. I graduated in 2002 and moved to New York in 2004. I have only recently saved enough to comfortably afford a purchase and right now there is no reason to even consider it. I will continue to easily save and live in my “nice enough” apartment while the rest of the housing pumpers fail to realize that no potential buyers are going to be jumping on the sinking ship with them.
Real data on rents in Manhattan from TheRealDeal. For those who think that AY is better than Manhattan, here is your baseline:
One-, two-bedroom Manhattan rents down in March
Mar 19, 2008 01:13 PM
March saw a drop in rents one- and two-bedroom apartments in Manhattan, with studio rents remaining about the same compared to February, according to a monthly report from the Real Estate Group. The average rent for a two-bedroom in a non-doorman building fell almost 2 percent to $3,858 per month, from $3,929 per month in February. The average rent for a two-bedroom in a doorman building fell half a percent to $5,265. The average rent for a one-bedroom in a non-doorman building dropped by about 1 percent to $2,792 per month, and the rent for a one-bedroom in a doorman building fell just over half a percent to $3,578. Non-doorman two-bedrooms in Gramercy Park saw the biggest change over the month, down 6.6 percent to $4,602 per month, from $4,925 per month in February. TRD