House of the Day: Stretching It in the Slope
Is it just us or does $1.8 million seem like a lot of dosh for a three-story house of nice, but certainly not extraordinary, quality? We’re sure the block is a good one as the ad says, but both the scale and finishes of the house look modest by Park Slope standards. Or maybe this…
Is it just us or does $1.8 million seem like a lot of dosh for a three-story house of nice, but certainly not extraordinary, quality? We’re sure the block is a good one as the ad says, but both the scale and finishes of the house look modest by Park Slope standards. Or maybe this is one of those cases where it would be worth it to hire one of those consultants to touch up the interiors–the Ikea furnishings certainly detract from the necessary gravitas needed to pull of this price (especially with the top two floors leased through the end of 2006!). Are you folks who know the Park Slope market with us on this one or is our lack of sleep starting to show?
10th Street [Corcoran]
Here’s where trader dude is not even following his own post:
“I wouldn’t blink an eye if the mansion on berkely… which is priced at 4.25 million is suddenly back at 3.25 million where it sold only one year ago… I personally would rather lose a 100k on my 400k coop ….”
Trader dude starts with the assumption that the trade happens at $3.25MM, the house is $4.35MM, it loses $1MM of value and goes back to $3.25MM. Then he says, he’d rather own a little co-op worth $300K (after the drop).
Who would you rather be? The guy with a $3.25MM mansion or the coffee boy with the co-op.
“Just because you have your name on a note for a $4M house (or $3M, whatever) does not mean you have millions in equity…or am I missing something?”
Yes, you are missing the fact that there is more than one way to look at the question. Just because you have your name on a note for a $4M house does not mean you are up to your eyeballs in debt either.
This is getting silly trader-dude. Are you really a trader or are you the guy who fetches the coffee for the traders? Cause it doesn’t sound like you’re exactly a BSD.
Anyhow, it all depends on the assumptions. You assume the investments were made at $4MM and $400K. Well, what if they were made at $1MM and $100K? Who would you rather be? The guy still sitting on a $2MM gain or the sucker with the $200K gain?
Anyhow, I apologized for jumping the gun because I realize you can look at it all kinds of ways. You obviously see the world in very limited terms. You must trade penny stocks – LOL.
Just because you have your name on a note for a $4M house (or $3M, whatever) does not mean you have millions in equity…or am I missing something?
I think the fundamental difference in the BB vs. trader scenarios is that BB accounts for the remaining equity value, while the anon trader is looking purely at the dollar loss, as though he were not actually using his own investment funds. To the trader, a $1,000,000 loss vs. a $100,000 loss is worse, all other things being equal. To BB, the owner of the $4,000,000 property still has $3,000,000 of equity remaining (assuming no debt), while the owner of the $400,000 property only has only $300,000 remaining equity.
Which one would you rather be? In real life, I’d rather be the millionaire (all other things being equal) despite the hefty loss, rather than the poor schlub who lost money on his little co-op. Of course, it all depends on so many other variables.
btw, peace and respect brownstoner. I’m signing off.
your not even worth responding to. The buyer’s situation is constant. He’s buying the property today. He can buy the $4m property or the 400K coop. The buyer is losing more money in absolute terms on the building than on the coop. For Christs sakes, you’re dense. Two investments, same cash in the bank. Something tells me you didn’t do so well on the math part of the SAT.
I’d rather have several million in equity, rather than a couple hundred thousand.
Maybe ythe bond market has been distracting you lately, so you fail to grasp that basic math.
I guess you do need the dots ALL THE WAY connected. In absolute terms, I were to buy a building today for $4m or a coop at 400K and the market went down 25% then I would rather lose 100K on the coop than $1M on the house. What part of this don’t you get???????? Are you a writer or something along those lines? Or you’re more verbally oriented than math? I’m really trying here, but I almost fell out of my chair when I read your comment and so did the other 10 traders I sit with. You are now the officially laughing stock of our small trading floor. Good luck Amigo 🙂