Most Post-2006 Condo Buyers Are Underwater?
In an article describing how co-ops are much better positioned for the downturn because, unlike condos, their position in foreclosure proceedings is senior to the bank, comes this doozy of a quote from the president of a property management company in Manhattan: I think it’s safe to say that the value of any apartment purchased…
In an article describing how co-ops are much better positioned for the downturn because, unlike condos, their position in foreclosure proceedings is senior to the bank, comes this doozy of a quote from the president of a property management company in Manhattan:
I think it’s safe to say that the value of any apartment purchased in the last two years is less than its purchase price. The simple calculation is that if you bought an apartment a year ago and financed 90 percent of the purchase price, as many did, and now it’s worth 20 percent less, you’re upside-down as an owner.
That’s another reason why co-ops are in better shape: Most owners had to put down a minimum of 20 percent when they bought.
The Downside for Condos in a Downturn [NY Times]
g123 – The overwhelming consensus is that prices have barely begun to fall in NYC so no, the market is not even close to “well priced” right now, unless you’re a seller hoping (unrealistically) to fetch current prices. Just wait til next winter and beyond.
Property is pretty darn cheap right now. And there is still good property. Buildings that are largely sold, largely paid off, already at 50% or more. Relatively safe buildings and they are priced well right now, at or getting close to cost.
If you’re waiting for the market to get cheaper (less then cost)… then you are planning to buy a high risk unit from buildings under duress. More typically this stuff is picked up by investors who have the stomach and tolerance for it. Most home buyers can’t live with huge vacancy… transient tenants, no services… lawsuits… no ability to re-sell for years, huge assessments that are unpredictable and the possibility of their home becoming effectively uninhabitable.
I think the market overall is well priced right now, I really do. But there should be and I think there will eventually be as the market adjusts a price difference between a largely sold, largely occupied, basically safe building and a largely unsold, un-built, unoccupied extremely vulnerable building. It hasn’t happened yet, but I think that it will and I think that’s where we are going to see further drops.
Oh harry, you typical windbag. What makes you think I am upset with people (like myself) who work for a living? What makes you think I think Obama is the messiah?
Are you right? No, actually you are wrong on every count. But go with your strengths.
snark – Typical far left liberal, going no where, doing nothing, very upset with people who actually work for a living, thinking Obama is the Messiah, believing the world owes them a living, am I right? Maybe, maybe not but i have reas some of your posts, seems like you are the one sleeping and haven’t woken up since birth.
harry – Did you just wake up from an eight year nap?
Hang on to your condo,coop don’t worry about it being worth less for now, just live in it and when the market comes back and it always does your equity will go through the roof.
Sam– your hilarious Oh yes on January 20th a socialist was elected president.
God help us… believe me he will be out in 2012. In 2 years republicans will take back congress. But I would rather have the whole toilet (congress) flushed out and term limits in place so it wouldn’t be corrupted as it is today.
That alleged press conference last night was a speech. He’s going to let Pelosi and Reid destroy our economy.
11217 should go work make some money for the heavy losses around the corner or make money and buy something bigger–perhaps a brownstone.
Does anyone know what he means by “since January 20th”? -in the 9:04 post? That is so creepy. What happened January 20?
Really, 11217, a blog is not a substitute for real human interaction, you seem like a bit of a lost soul. Listen to me: turn off the computer! Comb your hair, go for a walk.
Try and meet people, although I understand that may be a bit of a challenge. Maybe there is a vegan, all-windpower, back-to-the-sixteenth-century group you could join in Park Slope, Oh, come on, there’s gotta be. Once you start actually interacting with human beings, you can put the whole blog thing in perspective, and maybe you won’t feel so depressed.
Really, I know you think I’m old and therefore disposable, but old people sometimes know stuff. Turn off the computer, go to a movie. And take your meds!!!
OK?