Open House Picks: Six Months Later
Comment: Doing deals! Open House Picks 11/20/09 [Brownstoner] Previous Six Months Later Posts [Brownstoner]
Comment: Doing deals!
Open House Picks 11/20/09 [Brownstoner]
Previous Six Months Later Posts [Brownstoner]
didnt someone around here once say that the prices wouldn’t adjust before the volume returns? wish i could remember the handle. well, closings are occurring and prices don’t seem to be doing anything but stabilizing from the initial 10-20% off peak.
Market is busy, that’s a positive/bull indicator. However, prices aren’t down all that much. They’re much less than peak of bubble, but they’re higher than pre-peak. That’s also pretty bullish if you ask me.
“The concept of ”multiple of the rent roll” is a standard way of speaking of sale prices in rental buildings in New York City.”
BHO–the above quote from your article clearly states that the 10x metric is for “rental buildings.” What I have not heard from you is the correlation between rental buildings (purchased as an investment property with multiple units) and one and two family townhouses in Brooklyn.
BHO believes that the real estate community had something to do with 10x rents.
ROTFLMMFAO
8%, whatever, they were 10% by 1990 and if you still don’t know what a cap rate is and how it revolves around the risk free rate then I suggest you not bother talking about it.
“725k a duplex off central park”
No way! Where?!
“10X rent metric hasn’t worked since the late 1980s/early 90s when interest rates were 10%. And that’s why they don’t work now.”
Wrong! – http://tinyurl.com/yb8hft9
In 2003, at the beginning of the housing boom, the RE community is on record for agreeing that 10x was normal (also see Massey Knakal). What were rates then? You guessed it, around 8%. Where are rates ultimately headed today? You guessed it, back up towards 8% or worse as the world defaults and deflation spirals.
***Bid half off peak comps***
10X rent metric hasn’t worked since the late 1980s/early 90s when interest rates were 10%. And that’s why they don’t work now.
I like how people like BHO, DCB and the What, who are scared by the crashes, will usually go on to predict seven out of the next two crashes.
BHO, these prices are expensive man – especially according to you 10x Rent metric. so the fact they’re selling (3 out of 4 here), it’s bullish. maybe you got rich recently and feel you can splash that kind of cash around without any concern. To me, the above is bullish. I dont give an F if the seller made, lost, or broke-even on the transaction. I’m keying on the buyers willing to pay those prices. 725k for a house in ditmas ( vs 725k a duplex off central park) is bullish.
“I dont look back or forward.”
Then how do you arrive at “bullish”?
Stuff sold in the last five or so consecutive down days in the stock market with no fundamental signs of abatement (not without gov/central bank intervention). Is that bullish to you too?
Just asking.
***Bid half off peak comps***