Open House Picks: Six Months Later
Comment: Reality finally setting in for sellers? Open House Picks 1/16/09 [Brownstoner] Previous Six Months Later Posts [Brownstoner]
Comment: Reality finally setting in for sellers?
Open House Picks 1/16/09 [Brownstoner]
Previous Six Months Later Posts [Brownstoner]
Oh absolutely IronBalls. We’re on the same page.
The initial comment that sparked my response was:
“I think the biggest obstacle on that 6th st house is it’s a 1 family (ie cuts off some buyers who need that rental income to carry mortgage)”
I was never talking about multi-unit buildings.
Wow, gem, you sold your place really fast, it sounds like.
Re: Corcoran vs BHS — both of them have some good, straight-talking agents and some sharks. But in my sad experience, it is by no means always the brokers pricing things unrealistically. Frequently the sellers are the ones who have a number in their heads and won’t change it, no matter how hard the agent tries to talk to them about market realities. We’ve been looking for ages now and I have seen several properties get taken off the market by owners who wouldn’t consider an offer that was more than 5% lower than the (delusional) asking price. The brokers just want to sell.
Folks buying 2 million dollar homes don’t “rely” on their upstairs rental unit to pay the mortgage. That’s plain nuts.
But plenty of multifamily apartment building owners sure as heck rely on rents to pay their mortgages, and as more and more big buildings go into foreclosure, or are sold for big losses, the entire Brooklyn housing market (Park Slope brownstones included) will keep tanking.
BrooklynChimp,
Let’s not kid ourselves. If you buy a two family and are reliant upon that tenant paying on time every month what happens if they stop? They lose their job, they’re just being crappy because they don’t like something you decided didn’t need fixing etc.? Then what? Default on your mortgage payments?
I stand by my original statement, if you HAVE to rely on the rent roll then you can’t afford the house.
Have you learned nothing from this economy with everyone stretching themselves too thin? Use the rent to fund your retirement, your kids college fund, or pay down the mortgage early. Just don’t get yourself in a situation where if the tenant defaults, you then default. That’s just really bad advice.
LOL, real time reductions.
448 6th Street just reduced from $2,149,000 to $2,099,000 in the last hour.
“Reality finally setting in for sellers?”
No, they’d be in contract.
“how much was that place rented for?”
Fundamentals WOULD have it at 2,150,000/(10 x 12) = $17,917/mo. In Southie.
***Bid half off peak comps***
“If you HAVE to rely on the rental income to pay the mortgage you can’t afford it. Too many people get themselves in trouble that way. Rental income should be gravy.”
Delusive much? Rental income can be & is congenital to an investor, especially now.
Gravy? lets try leaving the aureate aura at log-in.
Thanks.