House of the Day: 41 St. Marks Place Revisited
Are we surprised that 41 St. Marks Place just underwent its second price cut? No. Do we think there will be more to come? For sure. The listing has been a disaster from the beginning. After hitting the market in mid-January for an insane $3 million, the three-family house was cut almost immediately to $2,650,000….
Are we surprised that 41 St. Marks Place just underwent its second price cut? No. Do we think there will be more to come? For sure. The listing has been a disaster from the beginning. After hitting the market in mid-January for an insane $3 million, the three-family house was cut almost immediately to $2,650,000. The 3,600-square-foot has now been cut again to $2,450,000. In addition to the mispricing, the presentation is abominable—Elliman should be embarrassed about this one. The crappy, overexposed photos only work against it. We took about five seconds to press the “enhance” button in iPhoto and improved them to what you see above. But who took the photos to begin with? That kid in the back hallway? This price has a ways to go, in our opinion.
41 St. Marks Place [Douglas Elliman] GMAP P*Shark
HOTD: 41 St. Marks Place [Brownstoner]
3rd Ave has a hooker stroll???
Where and what time? Im just curious for research purposes of course.
You can’t deduct all the interest on a $2 million mortgage, whether it’s a one-family or not. You can only deduct interest on the first $1 million of the mortgage. So the deduction, if you’re in the top bracket, is around $2000 a month (assuming $5800 in in interest on a $1 million mortgage). So your monthly interest payment, after taxes, is around $9500 a month. Add another $5000 a month for paying down the cost of the principal.
It’s fascinating that 2:00 pm is on here shooting his mouth off about other people’s math and insisting that this house is a great buy when he has absolutely no clue of the actual economics of buying a house, since he thinks you can deduct interest on all $2 million. Of course, this helps me understand the bubble of the last few years: tons of people like 2:00 pm, ignorantly thinking they could afford far more house than they could, and no brokers honest enough to tell them otherwise.
With the numbers on this house, the only way you’ll make a hefty profit when you sell is if home-price appreciation vastly outpaces its historical norm in NYC. Given how absurdly high home prices went between 2002 and 2007, that seems decidedly unlikely. There are more price cuts in this home’s future.
2.2 million
If the inside is in solid condition, and you could make the basement liveable space, I think a realistic price is around $1.5 million.
Again, i am asking, what would be the realistic price?
No, I do not own that house.
Babeland? Hookers? Quick, somebody cover Dmitri’s ears!
Bunch of frustrated comedians here today, huh?
I would be very surprised if they get more than $1.5 mil.
Actually 2:00, it is after taxes.
On a 2MM mortgage at 7% you pay 11,666 per month in interest.
Assume that you are in the highest tax bracket, and you take a deduction for all of the interest (if you make it a one family you can do that — if you keep it as a rental, you can only write-off the percentage of interest allocated to what you live in, which is a significantly smaller write-off). So, your deduction is about $4000 as a one-family. If you keep it configured as is, then your deduction is about $1400.
So, after taxes, your interest payment alone is signficantly more than what the rental cost is.