Report: Foreclosures Hurting Prices in Bed-Stuy
Small multi-family buildings in lower-income neighborhoods of Brooklyn have been particularly hard hit by the housing crisis, according to a new report from TerraCrg Commercial Realty Group. As reported in The Real Deal, 80 percent of foreclosure filings in Brooklyn over the past year were for mortgages under $1 million and 51 percent of non-residential…
Small multi-family buildings in lower-income neighborhoods of Brooklyn have been particularly hard hit by the housing crisis, according to a new report from TerraCrg Commercial Realty Group. As reported in The Real Deal, 80 percent of foreclosure filings in Brooklyn over the past year were for mortgages under $1 million and 51 percent of non-residential mortgages were for three- to four-unit residential buildings; the article also notes that “the majority of the foreclosures took place in lower-priced neighborhoods like Bed-Stuy and East New York.” The result? “A bevy of three- to four-unit residential buildings in Bedford-Stuyvesant can be had for under $300,000.” No big surprises here, though the headline tries to put a positive spin on the news: “Discounted Brooklyn brownstones coming to market, but not in prime neighborhoods.”
Discounted Brooklyn Brownstones Coming to Market [TRD]
It was a great trade for more than the financial reasons
1. I was tired of living in a large condo building
2. I really wanted more space especially outdoor space…I felt I earned it.
3. I was definitely getting bored and needed something to work on
4. I fell in love with the brownstones after a ride through Brooklyn one day. I had never been to Brooklyn all the years I lived in Manhattan since 1994 except once at night for a party.
The only real negative is that I’d still be walking to work (3 blocks) if i stayed in that condo!!!! Arrrgggghhhhhh
But the A is much better than the F and don’t let any PSers tell you otherwise!!!!
BBB, sorry to hear that.
What is the typical rent on a 750-sf floor-through these days, and what was it in 2006?
Good luck with the property.
What rate were they offering on your loan. I think the ability to lock in low rates certainly has a big effect on everything.
Any idea what that place or similar would sell for now???
Didn’t mean to start a fight again but if it’s your primary residence and you plan to stay there for more than 2-4 years, it shouldn’t enter into the decision.
>>So I’m up 14,000 + 6840 + 5200 = $26,000 per year in reduced expenses + income
this was a great trade.
Dave,
did not mean to start another argument with you. We were getting along just fine earlier with the nice conversation we were having. as you may or may not know, I dont have a lot of money and so if I bought a place a few years ago, I would have taken out a loan on 95% of the price of the house. I was looking into buying a place for 650k with a loan of $617,500. A mere 35k decline in the price of the place would have wiped out my equity completely.
Being a few hundred thousand under water in your primary residence is far from “financial ruin.” It was your inappropriate use of terms like that yesterday that got us into the big battle!!!!
Not sure what I’d get for it…probably close to $800k…with the deck and the facade done, maybe more.
I’m sure the condo I sold in Manhattan is worth a lot less than when I sold it.
Besides, the overall economics look like this:
Condo fees $6840 pa
Condo RE taxes $5200 pa
Mrtgage payment was $2,600 per month
Mortgage payment now $2600 per month including taxes
Income $14,400 pa
So I’m up 14,000 + 6840 + 5200 = $26,000 per year in reduced expenses + income
My gas bill is only about $1700 – 1900 per year
BBB, when did you buy your property in fort greene and what did you pay for it?
Was it because you listened to the likes of 11217?
I was very close to buying a few years ago after listening to the perma bulls but thank God for the What; he advised me not to and saved me from financial ruin.
I have two places. The one I live in I am way up on and I purchased an investment property in Fort Greene in 2006. Given the current rental market I will be paying out of pocket to service the debt. I can afford to hold it but I am not sure I want to be paying the bank to manage there property for however long this downturn lasts.