Co-op of the Day: 7 South Portland Avenue, #3A
Last year, Apartment 5A at 7 South Portland Avenue in Fort Greene hit the market asking $425,000 and ultimately sold for $415,000. That unit however wasn’t nearly as nice as this new listing for Apartment 3A. The half-floor, one-bedroom co-op has a light, airy feel and has recently undergone a tasteful renovation that maintained historic…
Last year, Apartment 5A at 7 South Portland Avenue in Fort Greene hit the market asking $425,000 and ultimately sold for $415,000. That unit however wasn’t nearly as nice as this new listing for Apartment 3A. The half-floor, one-bedroom co-op has a light, airy feel and has recently undergone a tasteful renovation that maintained historic detail while lightening the space up. This one’s asking $550,000. What do you think it’ll go for?
7 South Portland Avenue, #3A [Corcoran] GMAP P*Shark
Assuming $2500 a month rent (which might be slightly high) works out to $450,000 using 15X which is the number I usually hear when referencing NYC.
BHO is using the metric for suburban Las Vegas.
Thanks, DeLepp!
If I recall case-shiller had NY at 15X for long term. In 2008 that number got up to 22X.
> (10 x annual rent)
You keep stating that this number is a fundamental, but when was the last time that number was actually reflected in the NYC marketplace?
“$2,750 (if they could get it) means a fundamental value of $330,000 (10 x annual rent). But that’s a downward moving target as rents continue to slip.”
Why do you use 10x, BHO?
Not trying to make a point, just curious.
“Saying it is ‘well on the way to $1,900/mo’ makes you sound like a buffoon.”
Makes me look like a baffoon too. I guess I was exaggerating considering the high ask. But I expect all maint/cc’s to go up with taxes and energy costs. So does Minard @ 1:27.
But guys, stop comparing rental to monthly nut. Effective projected cost of owning versus renting requires, to the monthly nut, addition of projected net loss (underwater in bear market) or subtraction of net gain (appreciation in bull market). You have to consider the risk of losing your downpayment (forced sale) which in the typical 20% downpayment case requires a price drop of the same (even less considering the miscellaneous costs). Put $20K down on a $100K property which then drops in value by 20% three years later, that’s yo’ ass (20K/36 mos = $555/mo + nut, gross). $1,110/mo + nut, gross, if -40% drop.
$2,750 (if they could get it) means a fundamental value of $330,000 (10 x annual rent). But that’s a downward moving target as rents continue to slip.
Yes, there are benefits to ownership over renting. But when markets bottom, owning becomes cheaper, not more expensive. Remember the 90’s? RE will become undervalued again.
***Bid half off peak comps***
Snark, you are so devious. I would think the owner may have wanted to rent it out first, and asked for an amount that covered his/her cost, then the agent said the rent was never going to fly, let’s try to sell instead. I’d rather believe this, than this Machiavellian plot.
> $2750 rent for this is absurd.
Agreed. I’m just saying that apparently Corcoran was asking that, and since the listing is gone, they may have got it.
Or, perhaps it was a ruse to give a false impression to a potential buyer of the potential rent.
BHO- please explain your $1900 per month maintenance.