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I'm about to close on a 1bdr for $785000 in the 303 East 33 St. Tolls Brothers Building. Giving the current development on Wall Street, I'm not sure if I should buy now at that Preconstruction price. I also did some research on Tolls Brother and it doesn't look like they will do a good job. Please let me know if I should sign the contract.
If you are looking to flip it (or live in 2 years and counting on the appreciation to sell)..then you need to ask yourself. "Why will prices be higher? Who can afford or be willing to buy at the higher price"
The only reasons I see for buying would be:
- there going to me MAJOR hyper-inflation
- the dollars drops so low that the prices appear cheap for them even though they are in recession
- the FED bailout fuels another mini bubble that may last a few years (please god, one last bubble before I die!)
I have worked a few blocks from this location for 11 years. The neighborhood has improved steadily, but it is not overly residential. I question how much properties in this location can increase over the next 3-5 years, and maybe longer. There are several large new construction buildings going up as well. I would hold out and see what happens over the next few months, but you shouldn't just listen to me.
My advice, fwiw, is if you love the place, aren't afraid of depreciation/risk, aren't stretching to buy it and can put at least 25% down with 2 years of maintenance in escrow after you close....then go for it. If not 100% on all of those, I would wait.
do not do it. let us count the reasons
1) NYC real estate has been appreciating for almost 15 years straight
2) the financial services industry is having major problems, and these are 1/3 of NYC buyers
3) the world economy is slowing down also and there will be fewer foreign buyers
4) fair amount of new developments coming online
1) new construction is only new once, like a new car, it devalues quickly
2) 1 BRs don't hold their value in down markets
3) that's just a lot for a 1BR
Just rent a place you really like. It's just a 1BR - not that much furniture to move/space to customize so it's easy to rent then buy in 2 years.
lastly, if you do buy, there is no benefit to the borrower to putting more $$$ down except to the extent it gets you a lower rate. i would want to preserve liquidity in this market.
thaianh - i had heard about this building and wanted to chk it out. I assume the sales office is open; how long has it been - any idea?
However, I've seen a few Toll buildings and they're generally not the highest quality.