Co-op of the Day: 75 Henry Street
The listing for this 1,500-square-foot three-bedroom at 75 Henry Street makes a big deal about architectural lineage of its renovation but we gotta say it’s not doing a whole lot for. Nor is the asking price of $1,600,000 which seems very pricey for this building. Most folks who can drop this kinda dough on an…
The listing for this 1,500-square-foot three-bedroom at 75 Henry Street makes a big deal about architectural lineage of its renovation but we gotta say it’s not doing a whole lot for. Nor is the asking price of $1,600,000 which seems very pricey for this building. Most folks who can drop this kinda dough on an apartment in The Heights are going to want something prewar. Granted, we’re sure the views are nice and there’s some cheap parking available, but we’ll be very surprised if this fetches anywhere near the asking price.
75 Henry Street [Douglas Elliman] GMAP P*Shark
**correction**
I meant to say the apt should be listed for MORE than 800K
FSRG – I wasn’t saying that this apt SHOULD be listed for 800K – I was making the point agreeing with a previous poster that if this apt WAS listed for 800K the price would make that hideous exterior of the building tolerable
I do not beleive this apt should be listed at 800K, it’s worth more than that – I know for sure!
No Financeguy – I think that your metrics (rent vs. own) are accurate over the long term but irrelevant for a person looking to Buy and live NOW (you cant buy ANY 3br in true Brooklyn Heights for under 1M)
As for social dislocation, if you expect sale prices to fall in the short term (6mo-24mo) to bring sale and rents in line again in Brooklyn Heights – then that means that you are predicting prices will fall 50% in 1 to two years (or rents to rise FAST) in Brooklyn Heights – and therefore presumably more in less ‘nice’ neighborhoods in Brooklyn. If prices fall that much, that fast then allot of people (of all stripes) are going to be in real trouble and abandonment, neglect, massive cuts in city services etc… are likely and THEN – riots in the streets are not too far fetched.
It took a long time to get here (using your ’95 date) -approx 15 years (and I’d say longer); real estate doesn’t generally trade like equities and therefore it should take a long time (albeit less than on the way up) to fall – which brings me back to the point….in TODAY’s market – this apartment doesn’t seem all that over priced and someone looking to buy today will have to pay close to this to get this apartment.
BRG asks
“‘with it’s million dollar view’
So without a view, do you knock off a million bucks??”
Answer: Yes. Or a bit more.
ontheparkway: the numbers have a high fudge factor — the difference between 6% and 12% is huge — but the fudge necessary to get to HALF this asking price is rich for my taste.
fsrq: Rent/buy ratios have been out of whack since about 1995, when the current bubble started to take off here and nationally. A very LONG time for a very big bubble that is likely to have a very unhappy ending for people who assume that it is going to continue forever (or think that prices are up since ’06).
As for the “social dislocation” — seems unlikely to me. BH was a pretty nice neighborhood the last time prices were at that level. In any event, do you really think that the bubble buyers — most Wall Streeters, in the last few years — are going to turn to (violent) crime if they lose their home equity? Or is your fear that the rising middle class, suddenly able to buy middle class housing for middle class prices, will take to the streets in protest?
Well said, Financeguy.
Thanks finance guy, definitely food for thought.
I know there are a few ways to crunch the numbers but if you aren’t counting on appreciation, NYC prices are still way way too high compared to rents, even counting the tax deduction.
if someone pays 1.6M for this place, I will definitely try to sell the brooklyn bridge to that sucker.