HOTD: 306 Washington Avenue, Two Price Cuts Later
The price of 306 Washington Avenue in Clinton Hill has been in free-fall since we featured it as a House of the Day when it came on the market last summer at $2,300,000. It looks like it was a bit of an understatement when when we said that the “asking price might be a bit…
The price of 306 Washington Avenue in Clinton Hill has been in free-fall since we featured it as a House of the Day when it came on the market last summer at $2,300,000. It looks like it was a bit of an understatement when when we said that the “asking price might be a bit on the high side.” In September, the price was trimmed to $2,100,000 and then another $200,000 was taken off last month to bring the current asking price to $1,900,000. The house was also included on this past weekend’s multi-broker house tour. Think it has a shot at this price?
306 Washington Avenue [Douglas Elliman] GMAP P*Shark
House of the Day: 306 Washington Avenue [Brownstoner]
Something else that a lot of you are not factoring or are underestimating is the tax which is currently over $7000 a year (or $600/month) and will be going up to nearly $8000 next year. The city treats 4 family very differently than they do 3 or 2 families. And with the city strapped for cash you can bet that they will try to up the tax on 4 families again like they tried to do 4 years ago.
Aussie – I think you’re vastly underestimating the costs.
1. A $1.4MM jumbo commercial mortgage (4 family and up) is going to cost a LOT more than 6.5% in this environment. I’ve seen jumbos priced at closer to 10% these days.
2. $2,000 for taxes is quite low. The norm is closer to $4,000/5,000 (I pay almost $7,000).
3. Need to add insurance costs, which are now pushing $4,000 per year.
4. Also need to add a pretty big “miscellaneous” bill, especially with rent-stab. tenants.
5. And the big tax savings – well, the dreaded AMT gets rid of all of those.
Of course i cant answer everything brought up here but just one note- the owner is entitles to increases on stabilized units every time they renew either to a 2 year or 1 year lease. Higher increses on a 2 year. So your income will, in fact, grow with every lease renewal.
Anybody who is actually in the market and needs more details on the property is welcome to call me at (718) 486-4452.
A lot of you guys doing calculations are not factoring in tax savings which is how we got our numbers. i can also forward anybody a financial breakdown from Countrywide.
For you guys who want exact rent info please call me as i dont feel that it is appropriate to discuss apartments where people are still living on a blog post.
Thanks-
i would never EVER buy a home with rent stabilized tenants, even assuming i could afford to and wanted to move into all 5 floors. didn’t brownstoner post on a family in prospect heights who tried to do this? i’ve read that they’re still in litigation with one tenant (claiming “hardship”), have been subjected to protests *in front of their home* and attracted the unwanted and fomenting attentions of people like tish james, etc. i don’t necessarily feel sorry for them – caveat emptor and all that. point is, it’s just such a huge risk and a surefire headache either way that it would have to have tremendous upside or be the most amazing house in the neighborhood. this just doesn’t strike me as that kind of house, but good luck to all involved!
extremely optimistic!
so many posters are in denial about the city’s rent-protection law.
No aussie…it was all about doing it in Bed Stuy where there’s a real need. The pullback in the consumer isn’t encouraging either. It’s mostly that I and one of the other main investors have decided that we can’t/won’t risk our capital now.
“You can also legally take over the rent stabilized units for your own use. It involves some paperwork but you don’t have to pay off the tenants.”
That’s a rather optimistic view.
– http://bstoner.wpengine.com/brownstoner/archives/2007/08/tenants_fight_e.php
– http://curbed.com/archives/2008/06/04/lengthy_east_village_mansion_battle_ends_almost.php
Oh shit! That is too bad mate.
Not suggesting them for you but there are a lot of vacant commercial spaces around Clinton Hill at the moment. They have always been there, but they stand out now because there are “For Rent” signs on all of them. It looks like someone went through the areas and convinced owners not to leave space vacant. Several on Gates, Green, even at the beginning of Putnam and tons on Fulton.
Sorry to say that B is dead aussie. Too many problems with the locations that cost too much money in upgrades plus a few of us don’t want to risk our capital at the moment.
On a positive note, the owner of Saraghina; the soon-to-open pizza place on Halsey & Lewis was open last Thursday for some free pizza tasting. I can’t remember where in NYC I have ever had such great pizza. Probably two more months though with permiting, inspections and licensing crap. That food is going to be out of this world