Buy vs. rent - my old apt (apples to apples)

what would be your guess if they tried to sell instead of rent?

Same line (9 flrs higher but same views) closed for 900k in Sept.
Same line (5 flrs higher) closed for 840k in Aug.

Both apts were in similar condition to my old place.

10023, your example shows that buy and hold hasn't been the wisest choice this decade. But if your sellers had held on, $3800 rent on a $300k basis would have been a fantastic return. Then again, with these hard times, we may see 90s prices again.

Only with these low interest rates, will an apartment that rents for $3800 sell for $900k--a 5% cap rate before carry charges. Watch out below if interest rates rise as expected.

Based on that very general information, those current rent-buy numbers seem reasonable. The 2000 rent-buy numbers don't seem to make much sense.

rents were high in 2000, but corrected in the 2001 downturn

nothing like taking actual data that doesn't agree with your conclusion and concluding that the data doesn't make sense. brilliant.

LICC: you mean that in 2000, my old apt was sold for a too-low price? You would buy at the current rent-buy numbers (assuming that it will sell at 800kish)?

In (late) 2000, the apt had been on the market for almost a year, first priced at 549k, no takers. The apt was vacated, the agent could have done a much better job of cleaning - it was not filthy, but one of the bathrooms had water stains in toilet bowl. They could also have invested a little in sanding the flrs & painting the walls (they were white but not newly painted).

The apt sold in one day (to us) at its new ask of 480 (it was lowered to 499k after a few months at 549k).

At the time, convertible 3s were selling for approx. the same price in the Lincoln Towers (inferior location, better co-op finances). Condos were hard to come by, and were selling for 700k+.

One other data point, a larger apt in the same building (similar condition, better views, 1 extra room) sold for 520k a few months (Feb '01) after we bought our place. We had total buyers' remorse because it was a better deal. Anyway, my point was - it was a good deal, but NOT such a fabulous deal that we had to jump on it.