Open House Picks

I saw the Vanderbilt house and the 1 thing I’ll say is it has really nice floors ALL the way through. The “smuggler’s” basement i think its really a coal shaft but very cool the way they’ve retiled it’s floor. The basement rental is a little bit of a sad space. I think it could be converted to a one-family very nicely. The no backyard is a bummer but it is wide, I’ll vouch for the 21 ft. There’s a wall that runs through all floors, dividing them from the staircase. That’s what makes it seem narrow, but it’s a crappy drywall and can easily come out.

There are certainly people that will buy regardless. There are a lot of people looking in Park Slope and the surrounding areas that make $500 K plus a year. They don’t want to wait for a possible market correction. They work and make money to use it NOW.

The problem is that Downtown Brooklyn has become an area for the haves and the have nots. Many who report above don’t have the means to support these prices. I hate to tell you but the house on 6th Avenue will probably have a contract out within two weeks.

You can just wish the market down. In fact, the rental market is now pretty steep. People still don’t want to throw money away on rent. If you net $30,000/mth, you can afford payments of $8,000/mth pretty easily..

How romantic — making love on the roof of a building overlooking the Franklin Ave shuttle — kind of like all those train going into a tunnel scenes in the movies!

This letter is for anyone considering renting money from a bank in order to possess a home:

* If you buy a home today, there is an extremely strong chance that it will be worth less in the future, in some cases SIGNIFICANTLY less.

* Renting a home is significantly less expensive on a monthly basis than buying (financing) the same home. Just do the math.

* The late great worldwide housing ponzi scheme is over. Some countries are getting the memo a bit later than others, but the tide has turned, the days of wild speculation are over, and we will now revert back to the historical mean.

* It’s never different this time. The fundamentals will always matter. And it will always be the P/E stupid.

* Home prices rising to the point where working people cannot afford a home is not a positive development for society.

* All financial manias feature loose credit. This current financial mania featured the loosest credit in the history of mankind. The resulting cleansing will be historic and horrific.

* Real estate clerks (i.e. REALTORS) and mortgage brokers are not your friends, they are not interested in your well being, and they will do anything to earn their commissions.

Rent. Do not buy. After the collapse, there will be a time to buy again. Just look to the P/E and you’ll know when.