In case anyone happens to be looking for a similar condo/rental as me, lets share comps where one can rent or buy the exact same unit. I'm looking north of Fidi and south of 23rd st, generally on west side, but also noho/nolita area. here are a few places i found in a search today (asking price, then asking monthly rent). 217 West 19th Street #7S 2,900,000 9,500 445 Lafayette Street #9C 2,495,000... [more]
In case anyone happens to be looking for a similar condo/rental as me, lets share comps where one can rent or buy the exact same unit.
I'm looking north of Fidi and south of 23rd st, generally on west side, but also noho/nolita area.
here are a few places i found in a search today (asking price, then asking monthly rent).
217 West 19th Street #7S 2,900,000 9,500
445 Lafayette Street #9C 2,495,000 9,950
251 West 19th Street #4D 1,850,000 8,500
139 Wooster Street #3B 2,250,000 10,000
130 West 19th Street #10C 1,999,999 9,250
4 West 21st Street #5C 1,550,000 7,250
The rent/buy math is ridiculous on the first two (especially considering the 4k/ month common chargess at 446 Lafayette), but the rest aren't too crazy if you assume that the asking rental price is market (i think they are generally a bit high).
I'm not looking to just show apartments where rent vs. buy math reflects an overpriced condo and i'd love to see examples where it shows that the aksing price to buy represents good value.
The common theme to all of the apartments above was that the owner bought close to the top of the market, but probably also looked in a really attractive mortgage. From their point of view it makes sense to subsidize a renter, rather than prepay an off the market mortgage on an underwater house.
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Response by gutterballs
over 16 years ago
Posts: 29
Member since: Mar 2009
Also, there was a ridiculous unit at One Jackson Square that sold for over $3m and just rented for $10k. 6th floor with terrace, i believe.
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Response by truthskr10
over 16 years ago
Posts: 4088
Member since: Jul 2009
Simple formula. You should not pay more than 200 times an apartment's monthly rent.
That works out to 16/17 times rent roll.
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Response by maly
over 16 years ago
Posts: 1377
Member since: Jan 2009
It completely depends on monthly charges, which can vary enormously. It may be a simple formula, it's also completely wrong.
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Response by truthskr10
over 16 years ago
Posts: 4088
Member since: Jul 2009
It doesn't COMPLETELY depend on monthly charges and I didn't say you should pay 200 times monthly rent.
I said you should not pay MORE THAN 200 times.
I was offering a worst case price. Work down from there.
In fact, you'll find at least 80% of today's listing are well over 200 times. Pricing on last year's rent. Treating today's market like it is some apparition and soon to be yesterday's news. It's almost comical what some agents say at open houses.
I am back on open house hiatus. I think showing up makes them think the price is amiable.
I was considering renting this apartment but it either sold or rented a few days ago. Very nice apt but as a rear-facing loft, I wouldn't want to be an owner long term.
Also, there was a ridiculous unit at One Jackson Square that sold for over $3m and just rented for $10k. 6th floor with terrace, i believe.
Simple formula. You should not pay more than 200 times an apartment's monthly rent.
That works out to 16/17 times rent roll.
It completely depends on monthly charges, which can vary enormously. It may be a simple formula, it's also completely wrong.
It doesn't COMPLETELY depend on monthly charges and I didn't say you should pay 200 times monthly rent.
I said you should not pay MORE THAN 200 times.
I was offering a worst case price. Work down from there.
In fact, you'll find at least 80% of today's listing are well over 200 times. Pricing on last year's rent. Treating today's market like it is some apparition and soon to be yesterday's news. It's almost comical what some agents say at open houses.
I am back on open house hiatus. I think showing up makes them think the price is amiable.
151 Wooster 4B. Buy $3.9m, rent 20k, monthly payments about equal.
I was considering renting this apartment but it either sold or rented a few days ago. Very nice apt but as a rear-facing loft, I wouldn't want to be an owner long term.
http://www.streeteasy.com/nyc/sale/462149-condo-151-wooster-street-soho-new-york
The 200 times kinda works for the apartment I'm renting right now....though all rules of thumb are only that....good starting points.
The buy vs rent relationship in most of Manhattan is remains out of wack....especially since rents are still falling for parts of the market.
The market for UWS family size prewar rentals seems remarkably resilient however
200x is WAY overpriced. Sorry. No more than 150x monthly rent.