Slim pickings

Sunday: "inonada, why haven't you accepted such irrational mindset even though you are profiting from it both through stocks and RE by renting. Do you not see yourself continuing to be ahead of the crowd going forward?"

Trust me, I've accepted and embraced it. Why do you think I like putzing around here on the topic? It's hard to get an understanding of irrationality elsewhere.

inonada: "What do you think the ownership premium was on average across the market pre-bubble? Did it shift, or has it remained the same?"

That's actually a tough question and it probably depend on where they live and their social circle. The "being a owner status symbol" that was fueled by the bubble was important to certain people, so for them it probably changed a bit more. However, the "preference to own" I was talking about was more about family/social stability/nesting. For those who don't care much about owning as a status symbol (hopefully the majority), I would say the premium one was willing to pay owning one's primary resident stayed relatively the same. Of course the bubble forces that was encouraging people to own/flip as an investment might make it seem like they are willing to pay a greater premium during the bubble.

inonada: "Why do you think I like putzing around here on the topic? It's hard to get an understanding of irrationality elsewhere."

I think part of you is afraid that they'll wake up someday. This forum is reassurance that it won't happen, or at least not any time soon.

Thanks for the thoughts on ownership preference / premium. I certainly sense a shift away from preference compared to peak bubble in people, so I correlate the preference (non-financial) with dreams of $$$. It always seemed convoluted together in the irrational minds I've peered into.

"I think part of you is afraid that they'll wake up someday. This forum is reassurance that it won't happen, or at least not any time soon."

Interesting theory. Maybe that's going on in my subconsciousness ;).

This rent vs. buy discussion is academic and correct in theory in NYC, but it is closer to reality outside of NYC. I've been looking for a large 3br + rental and there is very little in the area where I want to live. I could find something but in less desirable area. In addition, most rentals I've seen are not acceptable in terms of condition (personal preference). So if someone puts high value on location/condition buy vs. rent calc could easily flip around.

It is academic until you find the place. Then it becomes real. Well-priced apts with good location / condition come to market rarely and move quickly.

I remember seeing a small 3BR (1700 sq ft or so) overlooking Wash Sq Park, corner exposure with about a dozen windows, nice renovation just completed, asking $7200. A rental building, not the sort of thing I usually look at, but seemed interesting. Sales value in the $2.5M+ range, totally underpriced even by my expectations.

I saw it at first showing as soon as the listing hit, but was the 2nd person. Unsurprisingly, the first guy who saw it had already put in an application. The broker said he had been waiting 7 years for the unit to come onto the market again. Gone in 15 minutes.

I suspect it'll take another 7 years for it to be back on the market.

It's not academic at all, because I've been comparing condos where both rent and buy options are available. I cannot get the buy numbers to work within even a 10 year time frame unless I use assumptions which seem unrealistic. Maybe I'll start a separate thread on this, because I'd love to see if we can start gathering some hard data in this area.

200 times monthly rent. The lazy man's quick formula for the tipping line Thoth.

Inonada: So what do you do if your parameters are strict? That is, nothing but that 3br Wash Park or equivalent will do? And the rent v. buy totally tilt in favor of renting (no question, 2.5m+ v. 7200). One doesn't have to compromise quite so much by buying but the economics don't favor buying. Ah, the joys of living in NYC.

How is everyone feeling about the bets they placed in this thread? I am commenting on it to bring it to the fore because I think it is one of the better ones on SE.

Place no bets on NYC RE nor this thread.
Then you will be feeling fine.

Any one who was long real estate did well as did equity investors. I am loving it. Up in real estate and enjoyed a decent ride in spx till 1400 plus.

But did you buy Sprint?

Hi Truth - Have been meaning to tell you that I have no idea what history is between you and AR and AH, and while I value both AH and AR's substantive posts, I cannot for the life of me figure out why they pounce on every post you make, and it disturbs me. From what I have seen, although your posts might not be RE-substantive, they seem harmless and generally light-hearted. Again, no idea what the history is and don't care; simply wish they would leave you alone and wish you would ignore them when they pounce on you. Confounds the neutral observer.

What was the point of posting that?

300_Mercer - I am rooting for you.
HB - Also meant to tell you that I always enjoy your background commentary.

Thanks nycnovice.

NYCNovice: Not to worry. Don't be disturbed.
streeteasy agrees with your observation and as of today streeteasy has resolved the issue.
Many of my posts have been RE substantive, others just light-hearted fun.
ar and ah will leave me alone from now on and all is good on the streeteasy.

huntersburg: that was the point.
That is my reponse.
The point is that all is good as far as I'm concerned.

Good to hear that,300_mercer.
Continue loving the ride and love it all up!

huntersburg gives good color commentary.

For the best music website blog and comments:
go to www.JormaKaukonen.com
Jorma is my dear friend and his blog covers his tour experiences, music,
family life,his talent at on-the-road photography, some religion and politics.

All are welcome to post comments, although there is a delay as the comments are reviewed.
You will enjoy it. Very civil and good-natured.

nycnovice, you are right, you don't know the history, including Truth's lovely allegations regarding the sexual activities of my children. keep me gray if it bothers you.

just noticed this early in the thread...

"To be perfectly honest I would love to sell now because I'd like the cash for something else -- but I am not going to put it on the market until prices come up"

Exactly the kind of sentiment we were discussing on other threads. Could be a healthy reason inventories aren't higher.

Funny, that was me, somewhereelse! I see that I wrote that 6 months ago. Havent seen the other threads you are referring to, but nothings changed with me. It is indeed irksome to have some of my equity tied up, but I am very grateful that prices are going up, at least in my building. That said, hasn't been an easy ride and I think I look 10 years older than i really am from sweating it out, lol!

Roger Waters of Pink Floyd was just added to the Love For Levon concert line-up.

Roger may have overpaid when he bought his E60's townhouse in 2008 for $14.995m but it's so beautiful.

Hang in there, technologic!