Forte Closing Prices Rolling In And Boy Are They Low!
Every week now it seems a handful of closings at the Forte trickle in through public records. As you may recall, after a tortuous two-year sales process where the market fell out from underneath the relatively high asking prices, the bank finally acquiesced and went into fire-sale mode in November. Needless to say, the condos…
Every week now it seems a handful of closings at the Forte trickle in through public records. As you may recall, after a tortuous two-year sales process where the market fell out from underneath the relatively high asking prices, the bank finally acquiesced and went into fire-sale mode in November. Needless to say, the condos flew off the shelf and by the end of January the triangular tower was completely sold out. So how cheap were these deals? Very! Take this 1,200-square-foot two-bedroom on the 24th floor that just closed for $594,000. Or this 1,435-square-foot three-bedroom that went for $720,325. Cheap, cheap, cheap!
As I said before I don’t see big drops any longer
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Did you see the first big drop coming?
“The historic sustainable price:income ratio is 3. That means this apartment has another -37.5% to fall like I’ve been saying about the market at large.”
BHO – What income are you using???
more4less – cheap – no I agree with you – reasonable for what it is and where it is – most def
I dont think 130K is a stretch for a 450K apartment AT ALL.
Assuming you are still saving that 50K a year (401K and 529k) – which is 40% of your gross – and doesnt include any equity that you are accumulating in the apartment.
After you consider the tax benefits this buyer would have about $1500 a month to “live”, which again is far from a crazy lifestyle but when you are saving 40% of your gross income to start – its more than ok.
fsrq, no doubt, reasonably price from comparative standpoint but if one aint rich, dont say 700k+ is cheap cause it aint. if someone pulls in 500k and says that is cheap, more power to you cause that is cheap when one is making that kind of coin
“33% DTI” – Adam Dahill @ 2:38
The back end is where banks scream “DENIED!”. Most home shoppers are deep in debt. That’s why they fiend for FHA.
The historic sustainable price:income ratio is 3. That means this apartment has another -37.5% to fall like I’ve been saying about the market at large.
Mopar – By the time you sell that 2BR for a -37.5% loss, you will have in effect paid more than $2,700/mo.
***Bid half off peak comps***
Just the other day, Yahoo News was claiming middle class is household income between $50,000 and $130,000. Just so you all know.
Agree 450 a stretch for $130k. But think about it — there are some two bedroom apts (and whole houses) for $450 or less but they’re not that common. And certainly not in Fort Greene. I mean a real two bedroom that a family with kids could live in — not a 500 sf floorthrough studio with no tub.
Re Berkeley, yes, out of state tuition is very high. That’s why you have to cut them off while they establish residency for a year.
“fsrq, even 175k is not enough for someone to claim to be financially responsible AND can afford these prices because not included in the above is food, entertainment, transportation, etc….”
Using the formula above if you were making 175k then you would have approximately $5625 a month in take home (assuming your take home is 55% of Gross – which is pretty conservative) after your monthly nut it leaves $1125 to spend on whatever you want – no it isnt great but it it isnt terrible especially since you’d likely be looking at a fairly nice tax return given the mortgage deduction that hasnt been figured in either.
Again if a family of 4 making 175K (i.e. affluent but not rich) putting away the maximum in retirement and education savings can afford a 3Br 2Ba apartment in an amenity filled building one of the most desirable parts of Brooklyn, minutes from Manhattan – then I’d say its reasonably priced – and Id ask you to compare that kind of relative affordability to any reasonably decent city in the world.
mopar, my “lots of paychecks” comment was on the 700k+ 3 bdrm units being cheap. 450k for 2 bdrm relative to renting is compelling but that aint cheap either for couple making 130k. cause that comes sacrifices too (tap out savings on down paymt, barely saving enough for rainy days, under-funding retirement, college fund….).
Berkeley for non-residents is harder to get in and pricey. The really good state ones are expensive for non-residents. It was a real eye openner when co-workers were sending their kids to college and heard the $40k-$50k tuition for some “OK” colleges. Ivy’s – dont mind them costing that much. Lehigh – 45k. Vanderbilt – 50k.,…..