Sale at 29 King Street #3I

i really need your expert advise on this unit versus other ones in the market such as 178 Franklin, 456 West 19th street, 89 Waverly place (there are 2 units for sale) or anything else you might know in the market.

Square footage of 1200 includes 6ft ceiling height loft. The real space is around a 1000 sq ft. Do not know what would make any one pay more than $1.1-$1.2mm for this place considering high ceilings and good location. Assume bathrooms have high-end renovations. However, no pictures of the bathrooms suggest otherwise.

As an investment, the party is over:

1984 ...$230,000
1995 ...$330,000
2003 ...$880,000
2006 $1,351,000 with a mortgage of $1,250,000

Somewhere along the line the appliances were replaced, but the dishwasher was installed incorrectly. It's supposed to be flush with the cabinets. Said cabinets are beat up and need refinishing. For $1M+ the seller needs to do it, not you.

Single-pane windows. Street is probably landmarked, ugly though it is, so big money to replace. That and the look of the radiator and AC suggest the place isn't going to be warm or cool enough, but there's no way to know until you're left holding the bag.

Sandrita, the fact that you would consider paying $1.6M for this place indicates that you have no business buying Manhattan RE at this point in time. Putting the 6 ft loft aside, you're paying $1600 a sq ft for non-prime Soho on a relatively busy street that taxis often take to cross Varick. An 18% premium to near-peak 2006 pricing is unheard of for a place unless it has been gut renovated.

Add to this the fact that you are feeling pressured to sign a contract after two visits, that you're being told that there are 10 people waiting to buy this (HAH!), and the fact that you are going around without your own broker, and I think you are being played for a sucker.

I am a bear on the market in general but am very open to people wanting to make educated purchases knowing the downside risks while having the financial ability to deal with any potential market. You, however, don't seem to fall into that category. Putting the issue of your financial strength and whether you should be buying in this market aside, you see kinda clueless on Manhattan RE. You should find yourself a knowledgable non-pushy broker and reset your search.

Finally, repeat this to yourself every day: "It is consumption, not an investment. It is consumption, not an investment. It is consumption, not an investment."

I am guessing you are spending $2500 or so on housing for your studio right now in a superior location. This purchase will put you at spending the equivalent of 2-3x that on housing all-inclusive (tax deduction, appreciation/depreciation, use of down payment, etc.). The question of 2x vs. 3x is a question of being bullish vs. bearish. However, have no illusions about the fact that you are doubling or tripling your housing budget regardless of what happens.

I thought this apt had an offer on it? It was also advertised for rent but when I tried to see it, it had been pulled. The difference between monthly cost for rent vs. buy was stark-- I think the advertised rental price was $5700 but based on the streeteasy calculator, mortgage plus common charges were just under $9000. That's with a $300K+ downpayment. Yikes.