Co-op of the Day: 10 Willow Place, #2
The interior of this new listing at 10 Willow Place feels more like a rental than a co-op in Brooklyn Heights, but it also looks like a decent deal for a townhouse floor-through apartment in prime Brooklyn Heights, especially when you factor in the private deck and the low maintenance. The asking price is $535,000….
The interior of this new listing at 10 Willow Place feels more like a rental than a co-op in Brooklyn Heights, but it also looks like a decent deal for a townhouse floor-through apartment in prime Brooklyn Heights, especially when you factor in the private deck and the low maintenance. The asking price is $535,000. Not bad, right?
10 Willow Place, #2 [Corcoran] GMAP P*Shark
I’ve actually been in this apartment. Yes, there is no kitchen to speak of. Moreover, the alleged “den” that causes the broker to list the apartment as a 2 bedroom is currently used as a closet, which is appropriate given its size, location, and the absence of other closets. The bathroom feels as cramped as those in a small, commuter plane. From the deck, which is the most attractive part of the apartment you can hear the BQE and helicopters (it must be close to a flight path for the down town heliport). The building’s “common space” feel cheep and thrown together, dating from a period when property values did not justify the renovations that are customary today. Willowtown is beautiful but you couldn’t be much further from a subway stop in Brooklyn Heights. All in all, the only thing that is likable about this place is the low maintenance.
Boerum — I’m not arguing against ANY of what you say.
BUT look at this example. Someone brought up how much this place might be worth as a rental (or rather what it has recently rented for) It is WAAAAAAAAAAAY off from the monthly nut you would have to cover… This is a crappy apartment and a MORTGAGE payment ALONE of $2400/month with a more standard down payment (say, 20%) you think is OK for this POS?
The add maintenance, add the obvious huge expenses of making this place not totally crappy, add the, what, thousands in costs associated with the purchase…
There is a REASON Corcoran took the listing down.
As someone who is newly considering buying, that is one of the most cogent explanations of the economics I have come across. Thanks @BoerumHill.
By tybur6 on April 14, 2010 2:47 PM
So, if you wanted to keep renting it at $2,400 a month, you would have to put at least 40% down just to SQUEAK by breaking even…. umm, well, as long as your tenants paid all of the utilities and general maintenance and any other incidentals.
So, ummm…have you spent much time thinking about this whole rent vs. buy thing? No?
It’s not exactly six of one, half a dozen of the other. There greater rights (and responsibilities) that ownership convey. You have the right to resell your property, at hopefully a higher price. You get to write off a portion of your expenses (prop taxes & mort interest). So, just in case you haven’t played around with the math, let me state in a plain, obvious way what should be plainly obvious:
IT COSTS MORE TO BUY THAN TO RENT ON A STRICTLY MONTHLY BASIS (assuming a conventional downpayment of 10-50%).
Not most of the time, tybur6. EVERY. FRIGGIN’. TIME.
So…now that we have covered that part…the old (5 years ago) paradigm for NYC was a fair rent or sublet for a co-op/condo is 1/40th of the purchase price PLUS the annual main/CC divided by 12. Go through a couple condos or co-ops in neighborhoods or buildings you are familiar with, and you’re find it’s a losing proposition.
Not most of the time, tybur6. EVERY. FRIGGIN’. TIME.
But hopefully while you are offsetting your oodles of passive income with passive rental losses, the home/condo/co-op you bought to rent out is appreciating. Unless you are living in BHO’s alternate universe, you will re-coop your losses when you sell for a gain. That long term capital gain will be taxed at a SIGNIFICANTLY lower tax rate than your ordinary income. Meanwhile, the whole time you have been renting out your investment property, you have been offsetting income with matching expenses, and taking deductions for taxes and mortgage interest.
We ain’t building rockets here…
Look what you guys have done!!! All these negative comments made Corcoran pull down the listing!!!
Oh my god, please. That is half a million dollars. I don’t care where it is, it is horrible.
So, if you wanted to keep renting it at $2,400 a month, you would have to put at least 40% down just to SQUEAK by breaking even…. umm, well, as long as your tenants paid all of the utilities and general maintenance and any other incidentals.
Streeteasy had this renting for 2400, which seems about right. 535 is quite rich, given that.
Worst apartment ever featured as a COTD (in Simpson’s Comic Book Guy voice).