Rentals of the Day: Some of Bklyn's Priciest
Looking to spend more than $6K every month on a rental? Here are some options, clockwise, from upper left: 1. Dumbo: 2-BR, 2-bath, 2,477 s.f. loft. $13,500, 1 Main Street [Sotheby’s] 2. Brooklyn Heights: 19th Century 3-story carriage house with garden, fully furnished. $10,000, 19 Grace Court Alley [Halstead] 3. Cobble Hill: 3-bedroom, 2.5-bath private…
Looking to spend more than $6K every month on a rental? Here are some options, clockwise, from upper left:
1. Dumbo: 2-BR, 2-bath, 2,477 s.f. loft. $13,500, 1 Main Street [Sotheby’s]
2. Brooklyn Heights: 19th Century 3-story carriage house with garden, fully furnished. $10,000, 19 Grace Court Alley [Halstead]
3. Cobble Hill: 3-bedroom, 2.5-bath private carriage house, private garden and patio space. $7,000, 48 Tiffany Place [Stribling]
4. Dumbo: 3-bedroom, 1,887-sf loft w/ open chef’s kitchen. $8,500, 30 Main St./The Sweeney Building [Douglas Elliman]
5. Bed-Stuy: 6-BR, 4-bath brownstone w/ garden. $6,500, 63 Hart St [Warburg]
Those rents all seem crazy to me. On the other hand, I did a quick calculation in my head a while back – having bought a house over a dozen years ago and watching the run up in prices I’m sitting on ~$1mil in equity. The opportunity cost of that sitting in the house now as opposed to sitting in a money market paying 4.5% is $3750 / month. Add my mortgage P&I and escrow payment and a rent north of 6k would be a reasonable trade-off.
If you buy you’ll pay well over 6k/mo. per $1mil financed (plus the opportunity cost of your down payment plus taxes & insurance & maintenance minus some $ for tax deduction on interest), so the places in the $1mil to $2mil range that get talked about every day on this blog are comparable to the rents in this range. You would have to come up with a far more crazy rent, maybe $30k/mo., to compare costs with the $7.2mil for yesterday’s HOTD.
Interesting article in the WSJ yesterday about the house price to rental ratio. In the US (and I’m sure in brownstone Brooklyn as well) there’s a long way to go to return to historical norms.
Check the graph here…
http://bigpicture.typepad.com/comments/2007/12/housing-crisis.html
Please tell me that BS rental is nothing but a cruel joke. I would hate to think that somebody supposedly sane made a decision to put that on the market. I love Bedstuy, but I think someone is trying to collect a months rent and security and skip town before it becomes clear that they don’t own the property. Now that would be worth a good laugh!
I could see someone renting a place this expensive and using part of it for a business and living in the rest and having a tax right off
my prediction: bed stuy building will be sold or in foreclosure inside of 6 months.
You could rent the Grace Court Alley carriage house for 30 years and still only spend half of what the Columbia Heights carriage house is asking (yesterday’s HOTD). That had a garage but this has a garden and windows.
I love Bed Stuy, but they are nuts to think they are going to get that much money for that particular house in that part of BS. If Tiffany Place can’t sustain that kind of rent, how in the world can Bed Stuy be expected to?
Unless you’re on a one- or two-year business relocation, who pays this kind of money on rent? Has the market really gotten so skewed that there are people who can afford a hundred grand a year in rent — the cheaper DUMBO apartment, the mid-price of the five — but somehow cannot afford to buy? (I am disregarding for now the folks that want to buy but just can’t pull the trigger.)
I mean, I am currently renting because I think that at my price point, I will save more on a future purchase than I am losing by paying my (slightly below market) rent for now. But at the rents listed above, I don’t see how there can be a comparable calculation.
That Tiffany Place 3br townhouse has been on the market for some time. I think if it were priced a bit lower, it woudl have gone quickly.
I don’t think they’ll get that for the rental. Whoever owns this place is pretty unrealistic.
I like Dumbo, but it amazes me that someone would drop that much on a 2 bedroom rental cookie cutter apt with nice views.