651 Washington Street
5 beds•3.5 baths•2,856 ft²
Townhouse in West Village
71 Thompson Street
2 beds•1 bath
Rental Unit in Soho
30 Park Place
Condo in Tribeca
12 sales•1 rental
Please, won't someone buy my house???
Geithner faces sluggish market, rents out NY home
Treasury secretary grapples with sluggish market -- for his own suburban NY home
NEW YORK (AP) -- The real estate market's troubles are hitting close to home for Treasury Secretary Timothy Geithner.
After reducing the price on his house in a tony New York City suburb to less than he paid for it, Geithner still couldn't sell and recently rented it out instead, according to real estate agents familiar with the deal.
Geithner put his five-bedroom Tudor near leafy Larchmont on the market for $1.635 million in February, after heading to Washington for his job as the nation's top economic official.
A few weeks after the asking price was dropped to $1.575 million, the home was rented for $7,500 a month on May 21, said the agents, Scott Stiefvater of Stiefvater Real Estate and Debbie Meiliken of Keller Williams Realty New York.
See what happens when you don't consider price to rent ratios...
hey Rhino, weren't you considering buying in the burbs... Mabe you can make Timmy an offer. Or did you want to move to CT?
Yeah I grew up there, I'd rather try something else - like CT. I was just doing the math... At his ask, if you bought his house and kept the tenant, you'd make 4%...which doesn't cover the rate of interest on a loan. This is basically what I think is wrong with real estate in this area. It should at least be high enough to match the loan...6.5%? Something like this should be like $950k or less. Maybe I'll offer that.
$1.5M? Why is his house so cheap?
Wasn't he wealthy?
Since when is $1.5 million cheap?
And why would he be rich? The guy works for the GOVERNMENT. I don't believe he has ever worked on Wall St. before, unlike Paulson.
nope - -spent his entire career in public service. his wife is a social worker.
For a second, I thought this was alpine begging....
He said he was having trouble affording the region and had to move to DC.
> nope - -spent his entire career in public service. his wife is a social worker.
Fed is actually quasi-private....
I never said I was having trouble affording NYC, dimwit.
did geitnerness just reduce his price?
oh, alpine292.. did you buy in hell's kitchen or are you renting?
> I never said I was having trouble affording NYC, dimwit.
Except you couldn't afford to buy here, and ended up in Jersey. And now need to move to DC.
Doesn't sound like anything but trouble affording NYC.
Dimwit from someone like alpine is a complement. He thinks perfitz is a genius.
"$1.5 million - why is his house so cheap?"
$1.5 million - It's the new $4 million!
I owned in Manhattan for 13 years. Seriously, are you really that stupid? I think I should just put you on ignore so that I can save myself time arguing with idiots.
I don't care if you've lived in Guam for 13 years - you can't afford Manhattan which is why you're moving to a low-class version of New York.
Stop lying to yourself you poor.
Can someone tell me how these Tim and his wife afford a pricy house like that working for the government? I find it odd that thse government employees have the ability to leaving in such a affluent area.. That is just his house, how about food, car, lawn care and etc.. I have a friend who bought a house around 1.7m in 2003. He is spending about low 20-25k per month which is around 400k per tax.. so how can he afford it?
Wait a sec, a mortgage of 70-80% on $1.7mm isn't anywhere near $20-25k/month...what you talking about? You mean a total family budget?
Honestly, I feel like so many people have family money or family help on the sly tip. Yes, if Geithner is spending on everything in a normal way...a $1.5mm house is roughly a $400k pre-tax check. His monthlies may be $8000-9000 and if it were rent the landlord would be looking for him to earn 50x... If only banks were as strict as landlords....Yet another reason why price to rent ratios got ridiculous.
Family $ (from wiki)
Geithner's paternal grandfather, Paul Herman Geithner (1902–1972), emigrated with his parents from Zeulenroda, Germany to Philadelphia, Pennsylvania in 1908. His father, Peter F. Geithner, is the director of the Asia program at the Ford Foundation in New York. During the early 1980s, Peter Geithner oversaw the Ford Foundation's microfinance programs in Indonesia being developed by S. Ann Dunham-Soetoro, President Barack Obama's mother, and they met in person at least once. Timothy Geithner's mother, Deborah Moore Geithner, is a pianist and piano teacher in Larchmont, New York where his parents currently reside. Geithner's maternal grandfather, Charles F. Moore, was an adviser to President Dwight D. Eisenhower and served as Vice President of Public Relations from 1952-1964 for Ford Motor Company.
Maybe Charles Moore invested well ...
In October 2003 at age 42, he was named president of the Federal Reserve Bank of New York. His salary in 2007 was $398,200. Also from Wiki.
Rino, I meant all in cost... mortgage, RE taxes, car, lawn care, etc.. Where is he getting the money to pay all that.. plus also save for his retirement. What a life these guys have
Okay make sense, so he is spending all his money now and will be getting social security and other low income grants when he retires.
His maternal g-grandfather was Arthur Boylston Nichols. Inv. banker, founder of Scuder Stevens & Loomis Sayles, inv. firms. RE developer :) 21 g-children. Died '55. Maybe he had 21m?
Look, if I had a gfather who was an exec. VP of Ford when it meant something and some kind of Beantown inv. whiz, maybe I graduated w/o student loans and a hefty DP on a 1.5m house.
Westsidehighway re 1.5m, "why is his house so cheap?". Even at the peak, many many lovely houses could be bought in the most expensive zipcodes in the greater New York area at this price. Manhattanites have their perspective skewed. Here a shitty little 1000 sq ft apt surrounded by brick walls on all sides sold for that.
alpine, you are an idoit!!!
"I don't care if you've lived in Guam for 13 years - you can't afford Manhattan which is why you're moving to a low-class version of New York."
Your right. I cannot afford Manhattan, which is why I live in Manhattan RIGHT NOW... as in thsi VERY SECOND. And as far as D.C. being a low class version of NY, I'm sure the people of Georgetown would disagree. The people in Georgetown are the ones who control the entire financial sector. They decide who survives and who dies. Without them and their bailout money, NYC would be a second Detroit right now.
"Can someone tell me how these Tim and his wife afford a pricy house like that working for the government?"
Because when Geithner was head of the NY Fed, his annual salary was $400,000, which is hardly a typical government salary.
gaongaon, most of those lovely houses also came with some of the highest property taxes in the country. That shitty 1000 sf apartment saved you 4 hours of commuting time a day and thousands of years in taxes. Commuting sucks, particularly when you have two parents working high-pressured jobs and juggling child care.
Oh, drat: thousands of DOLLARS PER year in taxes.
alpine: you're an idiot...D.C. has NO money....they have the authority to confiscate OUR money or BORROW money for a "bailout". Effectively, they plan on taking MY money in the future and are currently borrowing against this. i..e.. future confiscation without representation. But make no mistake it is not "their" money as you like to say.
D.C. has no money? Well then, the owner of this house respectfully disagrees:
and on the subject of money, D.C. lobbyists kick the asses of NYC iBankers. Why work as an ibanker in NY and have your salary regulated by the "Pay Czar" (whom will be chosen by Obama next week) when you can work as a lobbyist on K Street with absolutely no oversight of your 7 digit salary?
So what have we established.... Tim made $400k so a $1.5mm house was not too far out of whack. And as usual, Alpine is an idiot with no point. If Tim started making $400k in 2003 and still has a cost basis of over $1.5mm on that house (article said he'd take a loss at $1.595mm last asking price)...we know his timing wasn't great...now he is eating shit like the rest of the bulls!
Its funny, after all the arguments on this board, that buying and renting to an outside party (and being cash positive) is not the right analysis for purchasing owner occupied real estate....We see the Sec of the Treasury is actually suffering from not applying that logic. At $27k/yr in RE taxes and a big mortgage....he rents at $7500 and loses money monthly! You should always be able to cover your nut renting you real estate!!!!! Get the joke.
Evnyc, how about 29 minutes on the express train and 14K/yr taxes. Cheapest average maintenance for an apartment like that is around 1300/mo.
Gao - taxes on Geithners house, mentioned in the article, are like $27,000 a year. That doesn't include actual maintenance.
I'm talking generalities about 4 bdr houses in the richest zipcodes in the ocuntry. There were/and are many that sell for well under 1.5m. And taxes around 14k are not unheard of in such areaa. Wasn't referring to G's house, but to the perception that 1.5m was "cheap". Maintenance can be 300/month on average.
alpine292, sweetie, no.
World's richest cities by GDP
1. Tokyo - $1.19 trillion
2. New York - $1.13 billion
10. Washington - $290 billion
2. New York - $1.13 trillion **
"Your right. I cannot afford Manhattan, which is why I live in Manhattan RIGHT NOW... as in thsi VERY SECOND. "
If you could afford it, you wouldn't have to leave it.
Just like the guy who got foreclosed on. He lived in the house for a time, but could never afford it.
Alpine, I think you're just jealous that you can't afford to live in New York anymore and have to settle somewhere downmarket like Washington.
Just move away quietly, please.
"and on the subject of money, D.C. lobbyists kick the asses of NYC iBankers. Why work as an ibanker in NY and have your salary regulated by the "Pay Czar" (whom will be chosen by Obama next week) when you can work as a lobbyist on K Street with absolutely no oversight of your 7 digit salary?"
The reason to continue working in finance is easy as senior bankers deal with ten to eight digit salaries on average. Hell, one of my friends is 26 and made eight million this year alone and that's not half bad for a guy in his mid-20s in the middle of a depression. Let's not get away from the primary reason, however, why people are beginning to move out of the NY suburbs and away from DC itself: High state income taxes are driving everyone away from these areas and into Connecticut and Virginia.
"High state income taxes are driving everyone away from these areas and into Connecticut and Virginia."
Are you nuts? CT has the 3rd highest income taxes in the U.S. after NJ and NY. Going from the second most expensive state to the third most expensive is very poor economics. No wonder you and your Wall St. friends ran the country into the ground.
and let me say this one last time for you losers: I am not leaving NYC becvause I can't afford it. Quality neighborhoods in D.C. cost roughly the same as NYC, so I will not be saving that much money by moving... most likely pennies.
People are leaving because at the margin, mid-level financial people have seen the 'margin of safety' between their income and a comfortable Manhattan family lifestyle go away. When they see their income cut in half, and half their friends get let go, they have to think much differently about taking on a million dollar or more mortgage then they did in 2006.
CT is a big difference.... NYC is like 7% state 4%(and rising) city. CT is like 4% all in state. 7% diffencein taxes is closer to 15% pre-tax to net down to 7% equalize the two. Alpine I didn't realize that rankings are actually more important that the % difference. Good to know.
Connecticut has proposed raising taxes on the top brackets, so any savings will be short lived. And besides, if yungbuck truly had a friend who made $8 million a year, then he would not be paying the top bracket because he has tax shelters. Seriosuly, how many top income earners actually pay the top tax rate? If I was in that category, I would rent some studio apt. in a no income tax state (Derek Jeter style) and "live" there.
I don't think this 'friend' is relevant. That is not the person moving out of the city for monetary considerations. Its families in the $300k-$600k income range.
Top tax rate in NY: 6.85%
Top tax rate in CT: 5.0
Hardly a big savings, especially when you factor in all the extra money you will have to pay to live and commute from CT (ie: Metro North tickets, cars, etc.)
Alpine you are so annoying. Have you ever heard of city tax? Its another 4% and rising. 7% of an income of $300k is a little more than Metro North tickers. And I think you save more on housing then you spend on cars. You are such a stupid ass. You will take the other side of any argument, and argued it poorly.
People in the suburbs don't pay a city tax.
And as I said before, tons of people in the top bracket have tax shelters. They are not paying the 6.85% and the city tax. And if they are, they need a new accoutnant ASAP.
The Ugland House in the Cayman Islands, which you can share with 9,000 of your closest tax cheats:
LOL, exactly how much would $500,000 per year family save by moving to CT? 750 dollars per month?
You would move for that? LMAO.
Exactly. Moving from NY to CT just to save on taxes is not worth it. If your going to move, then move to a state with no income tax.
Does New Jersey have income tax?
Whatever happened to the Geithner house?
Presumably still rented out, Geithner rents an apt nearby.
He took a rent stabilized apartment???:
"My spies tell me that in September Geithner signed a lease for a fourth-floor apartment at Albee Court, which is a rent-stabilized building at the northeast corner of Boston Post Road and Larchmont Avenue, directly across from Larchmont Village Hall."
I thought if you made more than $170K you couldn't qualify for rent stabilization.
Matt, that may be a New York City regulation, not applicable in Larchmont. I didn't even know they had rent stabilization though outside of the city.
The fact that NYCMatt (not just a typical NYC resident but someone who spends a great deal of time on a RE website, do not take it personally please) does not know basic info about RS should be clear evidence that most people really have no idea about this, and most other aspects of RS, including how it is NOT a program for "affordable housing" and it is not keeping the "middle class" anywhere, especially when no one know what exactly "middle class" in NYC is.
You have to make more than $200K for two years IN A ROW (which most people who make that can get around)
If it is the apartment is occupied, it is a two pronged test (which is never tested after move in):
--Make over $200K a year for TWO CONSECUTIVE years
AND (yes, AND, as in BOTH, not ONE OR THE OTHER)
--Have a rent OVER (not under, where it would make more sense) $2500
What MAV said. There are liteally hedge fund millionares who have RC apartments in the city they inherited because the rents are below $2500 - meanwhile there are literally people who pay half their income in rent for units that rent for more than $2500k a month.
Literally? Or you just made that all up.
Even exceeding the rent level and two-year income test doesn't mean you can't have a rent-stabilized apartment. It just means that a landlord can choose to destabilize it. Or choose not to.
post it again Herr Field Hamster... post it again.