Single Women Propping Up the Condo Market?
For some reason, according to The Times, single women can’t get enough of the Brooklyn condo market. It’s the women’s checks, David Walentas said of the unprecedented number of ladies dropping deposits at 110 Livingston Street. It’s not like a dual account — Joe and Suzy. It’s Suzy. I’m amazed. One broker says that it’s…
For some reason, according to The Times, single women can’t get enough of the Brooklyn condo market. It’s the women’s checks, David Walentas said of the unprecedented number of ladies dropping deposits at 110 Livingston Street. It’s not like a dual account — Joe and Suzy. It’s Suzy. I’m amazed. One broker says that it’s the women’s ability to take the long-term view versus men’s competitive need to get the best price in the here and now. Other brokers say it’s the powerful word-of-mouth effect among women that’s resulting in pockets of them buying in the same new developments. One person we had dinner with on Saturday night had a less politically correct theory: That single women at the end of their child-bearing years may be coming to terms with the fact that they will only need a one or two-bedroom home for the long haul, whereas men of the same age may be holding out on the belief that they may need a larger family home at some point in the future. Another option is that there may be no trend at all, just a few anecdotal outliers. It would be interesting to hear from some brokers on this one.
Women Unafraid of Condo Commitment [NY Times]
Photo by Hiroko Masuike for The New York Times
Here’s another artcile that basically says that single women are at much higher risk of losing money on real estates.
Enjoy.
http://www.car.org/index.php?id=MzAxMzE=
Concerned Male, female here – male or female aside, I think it’s very tough to get a decent place in the NYC area if you’re not a two income family. There’s a lot more stress involved – at least with two incomes you might not lose your place if you lose your job or get sick. So perhaps some of these condo sellers are praying on single men and women, who may not be getting another opinion (or may be nervous to, thinking it could make them look weak).
But the lesson to take away is that you should NEVER enter into such a huge financial transaction, single or as a couple, without knowing the meaning behind every detail.
Usually I find the threads on Brownstoner very interesting & insightful, however most of this thread makes me very uncomfortable. I bought my first co-op at the age of 29, and its value is already up considerably. When I bought it I was not single, in a relationship, but we weren’t ready to move-in togetether. I was sick of paying rent, and wanted equity. Why is that a bad thing?
How are these women financing these purchases? Are they taking out fixed mortgages, ARMS or Interest Only loans?
Most of the women who have opined today seem to take a long term view of RE. Are they taking out fixed mortgage to reflect stable long-term horizon? Or they taking on risky financing, ie Interest-Only, ARMS etc.
My wife’s friend recently bought a condo. AFTER closing, she asked me to look over her docs. To my horror, she has one of those negative amortization loans(with the nice teaser rate, but variable after 12 months).
When i explained to her how these work, she seemed clueless.
I dont want to make this a men are smarter than women debate.(Everybody knows girls go to college to get more knowledge and boys go to jupiter to get more stupidier)
The point i’m trying to make is that this mortgage stuff is very very confusing. Anyone, male/female, needs to be careful with all the toxic mortgage products thats brokers are pushing..
My wife’s friend is an intelligent professional single woman who had $125K to put down on a place. I dont know many single men in a similar position. They might have $30-$50K, but thats not going to buy you much.
Since single men have now been priced out of the market, the industry is setting their sights on this new ‘demographic’.
Buyer be warned.
In todays market it’s easier to divorce your spouse than it is to unload a property. You can always walk away from a marriage. You cant really walk away from a property when you have a huge mortgage around your neck.
If you bought in the last year or so and plan to sell in the next couple years, you’re screwed no matter what sex you are.
So at least some of these anooying single ladies are going to get screwed at least once. Hooray!
“Is this the real estate equivalent, “Don’t buy a place or you’ll end up alone?”
Buying a place will get the opposite effect — you will start atracting leeches (aka freeloaders) wanting to ride your coattails to their next destination AND wanting to boss you around to boot!
How does the saying go, “My mama didn’t raise any fools” Instead, what she said was, “Live at home for a year after college, save and buy a nice, cheap co-op for not too much money.” well, mama was right!! I got a 1 bedroom on ocean parkway for less than 100K, lived it in for a few years. I now rent it out at a cost enough to cover the mainteneance & mortgage and use the excess to supplement the mortgage on a 3bedroom, 2bath duplex in Windsor Terrace. Oh yeah, I live there with my husband, beautiful baby girl, an eye toward baby number two and a black Lab in the future.
How interesting that this thread is so reminiscent of all the articles you read exhorting women NOT to get advanced degrees because you will be less marriageable. Is this the real estate equivalent, “Don’t buy a place or you’ll end up alone?”
ok, I just read this thread and first of all: to the neanderthals who think women buy real estate for fear of commitment or for a trade off for a ring or husband, I say to all of you fo f*** your self. Women who invest in real estate are a helluva lot smarter then most guys I know who don’t even have the $ to make this sort of investment. Best thing I could have done the first time around..I walked away with my first buy and sell with over $350K return from my first sale. So I ask you cavemen: who’s stupid, fearful, and poor business people now? This woman who is now on her second buy/sell and will have made almost 500K (based on my upcoming impending second sale) or you, the poor ignorant male who is paying child support because the only head you are using is the wrong one and you who are still renting because you are hanging with your frat buddies and still drinking beer every night?
“Jeezus, 11:37, what “market today”? Everything is selling! Slower, sure, but big whoop. It’s nice when that happens; it gives buyers more time to look and think before you make an offer.”
Are you kidding me? How can something purchased in 1994, or 1997, or 1999 and the money made from it be at all relevant to making a decision today? Every single person buying at those times would have made money? Someone who bought at the end of last year – tell me now that it was the greatest decision and that your place is worth double what you paid? The fact is people give these anecdotes to demonstrate that they made a boatload of money buying real estate – that’s not going to happen today. You can say all you want that prices aren’t dropping much, but they’re certainly not appreciating at the rate they were, and they are WAY above what it would cost to rent similar places.
So whether things are selling is irrelevant to the point that people who provide such anecdotes are trying to make.