Rental of the Day: 414 7th Avenue
This two-bedroom apartment was listed as our Co-op of the Day about a month ago, and now it looks like the owner is also trying to test the rental market. We liked this two-bedroom two-bathroom unit at 414 7th Avenue when it was for sale, and we still like it now. And because it’s rented…
This two-bedroom apartment was listed as our Co-op of the Day about a month ago, and now it looks like the owner is also trying to test the rental market. We liked this two-bedroom two-bathroom unit at 414 7th Avenue when it was for sale, and we still like it now. And because it’s rented through the owner you won’t have to pay a broker fee but there’s no mention if a board interview would be required. This unit is still on the Brownstoner Marketplace for $725,000. Renting will run you $3,000 a month. What do you think?
414 7th Avenue [FRBO] GMAP P*Shark
whats the retail like that far down on 7th?
Stargazer,
The average Manhattan ONE bedroom rental is now at approximately $3100.
Yes, people do pay it. They pay this much for 1 bedroom rentals in all those new Downtown Brooklyn highrises that you like to rip apart so much too.
3K a month for nothing more than a glorified tenement.
Wow, Imagine the tenants of 1940 coming back to life and seeing the current people paying all that money…..
I could hear the laughter already…..
and people actually do pay this????? no wonder rents will never go down.
Also, when buying, you’re property is going to appreciate. Unless you plan on staying a couple of years then selling you’re making a risky move. If you’re buying a condo/coop with the intention of staying there a while the value will be higher then when you bought it, no matter what BHO wishes.
My guess is that they’ve priced the apartment more in line with comps than they have with the rent to own equation. I think a lot of people do that because they view NYC housing as a luxury good thus making it less likely to be tied to these fundamentals.
But yes, it’s cheaper to rent this place so I see your point absolutely. I think a lot of people DO in fact buy in this city based on the psychological benefits and that part of this is often underestimated. Especially by people like BHO.
11217, I agree with you. I don’t think $3,000 is unreasonable either for this rental either and you could even argue maybe they should be getting closer to $3,250.
I was commenting more on the ask price. If you think $3,000 is a reasonable rent (i.e., you think the annual lease revenue on the apartment is in the $36,000 range), paying over 20x to own is simply paying too much. Bring the purchase price down from $749k to $550-600k and it starts to make sense. Otherwise, you’re better off renting. Too many people are willing to pay way too much to own when they could rent an equivalent place on much better economics. It’s fine if they want the psychological benefits and pride that comes with ownership but 20x simply does not make sense on pure economics.
bkhabitant,
I have friends who pay $2800 for an apartment a block from here which isn’t NEARLY as nice as this place so no, I don’t think 3K is completely unreasonable at all.
Guessing they left a little room for negotiation though.
BKrules, most renters like to decide if they want to move after a yr, renew, etc. vs this is huge risk of being ASKED to move cause landlord sold the place. makes a huge diff. moving is a bitch and it’s costly too
Not going to defend BHO (no way this is a $360k place in the future), but if you think $3,000 is a reasonable rent for this place, then you have to admit $749k is WAY overpriced.