More good news for buyers and renters

You dimwit. This is BAD enws for everyone. If the building is vacant, no bank will lend you the money to buy in it since it is not at least 70% sold.

So the owner will convert it to rentals, lowering the price of rent. Good new!

No it's good news and will push prices further down to where they should be.

but then that is bad news for buyers since that will reuce the amount of availbale inventory. And besides, a lot of these "ghost" buildigns are not completed so they can't be sold or rented. They will have no impact on the market, other than become neighborhood eyesores.

"No it's good news and will push prices further down to where they should be."

uncompleted buildigns have no impact on prices.

alpine, they will be finished over time. there will be tons of inventory. the failures will aid both renters and buyers.

JuiceMan said that Manhattan wasn't like Miami, so this story is obviously false.

they will not be finished anytime soon since the devlepers can't get financing to finish. So in the CURRENT market, they will have virtually no impact.

Dream on Alpine...Factory Lofts and The Metropolitan are complete and ready to move in.

are they 70% sold?

If they are not 70% sold, then it is as if they are uncompleted since nobdoy can move in unless they are buying for cash.

most of them do not show up in the current manhattan market data. and in that data there are TONS of units available for sale that are not in the official inventory. we're fine alpie, this will just be a bit of insurance for those of us who wish to wait. someone will buy these at firesale prices, or do something with them after they've foreclosed. getting 50 cents on the dollar is better than getting nothing. i know, maybe the banks that wind up owning them can provide construction financing to themselves?

many buildiongs are selling their unsold apts. in bulk porfolios, (20 Pine included) but I doubt this benefits the average buyer as they cannot afford to buy 30 + condos.

but bulk purchases benefit buyers (drives down comparable prices per sq ft) and renters (the bulk buyers rent these out.) So you admit I am correct.

Factory Lofts and The Metropolitan are not 70% closed, both buildings are being foreclosed upon.
Who knows what's gonna happen? Are they gonna hit the Auction room ? At some points Lenders will have to unload one way or another...

it helps them when the sales data show that those 30 condos sold at a certain price. depresses the price of the other sales in the building. slow, alpie, slow.

that's not true. When apts. are sold in bulk for $60 million, that has no impact on comps.

And don't assume that all of the ghost buildings will be completed in your lifetime:

http://en.wikipedia.org/wiki/Ryugyong_Hotel

a hotel in north korea? you don't think that's a bit of a reach. and of course it has an impact, although it probably means you'll be able to get a great rental deal in 20 pine because mortgages will be hard to get and people won't be able to sell in a building that is doing bulk sales. cheers.

"and people won't be able to sell in a building that is doing bulk sales."

And how does this benefit buyers? If sellers can't sell, buyers CANNOT buy. DUH!

alpie, read my son. in THAT case it helps the renters. in other cases the buyers are being helped. see, isn't it just B E A Utiful?

the only way ghost buildings will benefit buyers is if the 70% requirement is reduced or eliminated, or if you are a cash buyer.

do we really need to resort to name calling? "dimwit"...

lol. and ryugyong hotel was not completed mainly due to it's poor design...the building is concrete and too heavy...it's listing (i.e. Tower of Pisa) and massively expensive to remedy.

ps- i vote lower prices are good news for buyers and renters

lower prices are not good for Alpine

"many buildiongs are selling their unsold apts."

Then no one will qualify for federally guaranteed mortgages, b/c there is a limit on single ownership.

Seems to me the interesting action is taking place in land values - always the most volatile piece of the pricing puzzle.

"There remains a significant disconnect between the bid and the ask, particularly with regards to development sites with land values off 50 to 75 percent from their peak, in many locations," said David Schechtman, a senior director for Eastern Consolidated.

topper that is key going forward. very depressed land values could actually help promote development of rental properties in the future.

i'm curious what everyone thinks of this....the city and state make a deal with developers to finish their projects and rent them at much lower prices and the developers get large tax breaks...they did it before with stuytown, etc..

Nah, just take over those sites for new schools.

this story highlights only half the story in Manhattan (I don't leave the island);

it fails to account for plenty of large projects that are seriously undersold, whereby the developer is either going to default or bring those units to the rental market, which will create a whole new wave of product, similar to "unsold shares" that have been haunting nyc buildings for years. For me, that is the real story.

Miraval was mentioned...that is only one.

My guess is that they were playing nice and not mentioning the others.

Love those section heds: "Buyers disappear"..."Prices plummet".... Why don't they just title the piece: "OOOOOOOOOOOOOOOOOOOOOOOOOF!"

"i'm curious what everyone thinks of this....the city and state make a deal with developers to finish their projects and rent them at much lower prices and the developers get large tax breaks...they did it before with stuytown, etc.."

Well, if they are bankrupt they probably have no profits to get credits against when taxed...or they probably do not exist as an entity.

Possibly the could work with the banks once they reposes, but to me that is the least desirable outcome. By the there very nature they will drive down rents - thousand of units flooding the market, when the bank just wants to unload. I think in many cases any "tax credit" provided to the likes of JPMorgan etc will just be gravy to get them to do what they would do anyway.

"And don't assume that all of the ghost buildings will be completed in your lifetime:"

Does anyone remember that building on River Rd (or I guess it's Main St there? I'm talking about the place on the West side bout midway up the "big hill" ) between Edgewater and Fort Lee that sat with just the slab floors and some rebar sticking out all over the place that was like that for at least 10 years?

"JuiceMan said that Manhattan wasn't like Miami"

Which steve disagreed with, then steve said he didn't disagree and that I was making stuff up, then steve disagreed again, and then steve agreed but said that I didn't understand his point of view, then he agreed, and the disargeed, and now here we are. What is your point of view today steve? Is Miami like Manhattan?

I think rufie said the girls are hotter. of course he said that about the chicks in chicago too.

I would be in favor of the city finishing buildings absolutely no one will finish and then auctioning them off, or renting to MODERATE income people. But that should be a last resort.

That will never happen Jsaon. The politicians would rather give the units over to the non profits who contribute to their coampaigns. Don't be surpised when the city gives an entire buidling to ACORN.

"Which steve disagreed with, then steve said he didn't disagree and that I was making stuff up, then steve disagreed again, and then steve agreed but said that I didn't understand his point of view, then he agreed, and the disargeed, and now here we are. What is your point of view today steve? Is Miami like Manhattan? "

Which was all only talked about to argue whether Manhattan would go down big or now. Steve's view was pretty clear on that, Juiceman's view was pretty clear on that, and who was right is now pretty clear.