Looking in the UES for a doorman/elevator building, and I'm willing to consider a land lease building. I found a few that look interesting, but I find it difficult to understand why some units are going for as cheap as they are, mostly transactions in the building as short as 18 months ago (market adjustment withstanding). These two units in particular at 205 East 63rd Street appears to have been... [more]
Looking in the UES for a doorman/elevator building, and I'm willing to consider a land lease building. I found a few that look interesting, but I find it difficult to understand why some units are going for as cheap as they are, mostly transactions in the building as short as 18 months ago (market adjustment withstanding).
These two units in particular at 205 East 63rd Street appears to have been listed and closed for ultra-cheap, even when compared to other listings and transactions in the building itself:
$399k list price; under contract (assuming for less); 900sqft 1br - less than $450/sqft
https://streeteasy.com/nyc/sale/446016-coop-205-east-63rd-street-lenox-hill-new-york
$290k list price; under contract; 650sqft alcove studio - less than $450/sqft
https://streeteasy.com/nyc/sale/476364-coop-205-east-63rd-street-lenox-hill-new-york
While the maintenance is high considering it is a land-lease, it's not completely out of whack, and I've read on the message board that this building's lease goes past 2090.
My main question is really: why are these units going for as cheap as they are, when the average previous sales are closer to $690/sqft, and most listings are coming in at around $600/sqft?
Very confusing -- curious if I should even bother wasting my time looking here.
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Response by mercuricoxide
almost 16 years ago
Posts: 73
Member since: Dec 2008
Even if the lease is until 2090, that does not mean the terms are fixed until 2090. So, the fees can and will increase at various points.
So, some people were probably willing to take deep cuts to get out no matter what.
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Response by kharby2
almost 16 years ago
Posts: 279
Member since: Oct 2009
Some people will not purchase a land lease apartment at all, on principle. Some even extend this to Battery Park City and Roosevelt Island, which are city owned, which I think makes them essentially risk-free as far as the land lease goes. But there are plenty of people who would rather risk a tiny co-op with a big mortgage--which is my idea of a risky purchase.
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Response by stevejhx
almost 16 years ago
Posts: 12656
Member since: Feb 2008
I say Edgewater Park. Try it, you'll like it.
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Response by Trompiloco
almost 16 years ago
Posts: 585
Member since: Jul 2008
I think people are right to include Battery Park City in that category, because BPC maintenance and taxes are very very very high, despite the fact that BPC would never "lose it lease" or anything like that. mets2010, I think the whole issue revolves around total carrying costs rather than simply discounted psf. For example: you're paying 1,800 in maintenance for that 850 sqft apt. plus maybe another 1700 in mortgage (300K mortgage at 5.5%) and are deducting about $300 in tax exemptions, that's still 3,200 per month. Is that higher or lower than renting a similar unit? Will it be cheaper to buy it in 2011? Those are the questions...
Even if the lease is until 2090, that does not mean the terms are fixed until 2090. So, the fees can and will increase at various points.
So, some people were probably willing to take deep cuts to get out no matter what.
Some people will not purchase a land lease apartment at all, on principle. Some even extend this to Battery Park City and Roosevelt Island, which are city owned, which I think makes them essentially risk-free as far as the land lease goes. But there are plenty of people who would rather risk a tiny co-op with a big mortgage--which is my idea of a risky purchase.
I say Edgewater Park. Try it, you'll like it.
I think people are right to include Battery Park City in that category, because BPC maintenance and taxes are very very very high, despite the fact that BPC would never "lose it lease" or anything like that. mets2010, I think the whole issue revolves around total carrying costs rather than simply discounted psf. For example: you're paying 1,800 in maintenance for that 850 sqft apt. plus maybe another 1700 in mortgage (300K mortgage at 5.5%) and are deducting about $300 in tax exemptions, that's still 3,200 per month. Is that higher or lower than renting a similar unit? Will it be cheaper to buy it in 2011? Those are the questions...