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]
That’s not a boyfriend Dave, that’s a SEPTA-Guy-Aryan.
Even better yet is when the bf lives in Philly and I live in brownstone Brooklyn!!!!
US economy has collapsed. More so the NYC economy. One of the reasons is the housing bubble. I can’t believe people believe that people will break even in 2011 or 2012. I think that no one who bought in the last 8 years will break even (inflation adjusted) unless another housing bubble comes again which is highly unlikely in the next 20-30 years.
> “Absolutely, Shark.”
Und der Haifisch, der hat Zähne und die trägt er im Gesicht..
> “And if I were to fall in love and couple up right now, we’d be keeping our respective apartments…”
I’m with you there. My BF bought a quite lovely place, but we like having separate abodes.
Absolutely, Shark. And if I were to fall in love and couple up right now, we’d be keeping our respective apartments and not co-habitating at this point. That’s the price I’ve paid for buying a studio and I’m cool to live with it.
But things have gotten so expensive lately that there are MANY people into their late 20’s and 30’s who still have roommates. I even know a few in their 40’s. It’s not ideal.
If they see a chance to escape the roommate life (like I did) I jumped on the chance to live alone. Even if it was a studio and not a 1 bedroom. I bought what I could afford to increase my living standards. I love it.
I’m playing devil’s advocate for a second here, but honestly Sam…and I’m not AT ALL saying I’d like to live here in the bad days of the past, but just the fact that these neighborhood change at all (and so fast and abruptly) is the reason why some people choose to live here.
I like fast-paced change and an ever-evolving landscape. It’s what creates NYC’s energy, which is one of the first things tourists from out of town or out of the country comment to me as their favorite aspect of the city. They say it feels like it’s buzzing, which is pretty special and rare for a city in the U.S. I’m not sure I feel that “buzz” anywhere else, in fact. Not on this scale. Buenos Aires has it a bit too, as do some other great cities in the world.
I would not be happy in a nice, quiet suburb where everything looks and feels the same today as it did in 1960.
It takes all kinds, and today NYC is a pretty amazing and special place for me. I wouldn’t want to live anywhere else right now.
The last thing a bank wants to do is foreclose on entire co-op. they would rather stand on their heads. There is a simple formula put out by the NYC Council on Co-ops and condominiums that set out what the acceptable limit of debt is per share in a co-op, that has to be part of your due-diligence.
Some interesting points, but one thing hasn’t changed: When those single people get married, they want to move up to a bedroom. When they have children, they want to move to a two bedroom. Because of this churn, studio apartments are most vulnerable in the market.
This doesn’t really so much apply to me, as I plan to buy, stay put, and leave feet first. But I think it does affect the market at large.
Sam – you ignore the fact that Coop shareholders actually own equity in the building – which is also generally financed…if a coop cannot make up its lost “maintenance” – the risk is Foreclosure/receivership of the whole corporation. Condos who lose their maintenance risk – deferred repair, less service etc….
i.e. risk of losing the whole building is alot less.
Each has its advantages/disadvantages – none is inherently more immune to downturn – you have to compare each development/building separately.