http://www.streeteasy.com/nyc/sale/230999-condop-45-east-89th-street-carnegie-hill-manhattan
For sale at $5,750,000 - what a deal, they recently dropped the price by $200,000. With 20% down and 6.5% () 30 year fixed mortgage (both assumptions might be too aggressive especially if the unit is non-owner occupied) the monthly payments are $33,385.
Also for rent at $22,500 per month
http://www.streeteasy.com/nyc/rental/388652-condop-45-east-89th-street-carnegie-hill-manhattan
The investor here will hemorrhage at least $11,000 a month, tie up $1.150mm of capital on a down payment plus mansion and mortgage taxes and watch the value of your asset go down.
I know there are some smart real estate investors on the board - can one of you enlighten us as to how this math works?
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Response by mbz
over 17 years ago
Posts: 238
Member since: Feb 2008
The "math" consists of - it has worked for the past 10 years therefore it will keep working.
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Response by stevejhx
over 17 years ago
Posts: 12656
Member since: Feb 2008
For a mortgage of that size, figure 8% interest.
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Response by EddieWilson
over 17 years ago
Posts: 1112
Member since: Feb 2008
But the house will double in value, so its ok...
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Response by AnneC
over 17 years ago
Posts: 36
Member since: Aug 2008
houses aren't doubling in value in a year, maybe over 10 years.
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Response by EddieWilson
over 17 years ago
Posts: 1112
Member since: Feb 2008
that was called sarcasm....
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Response by AnneC
over 17 years ago
Posts: 36
Member since: Aug 2008
Hard to distinguish your sarcasm
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Response by MMAfia
over 17 years ago
Posts: 1071
Member since: Feb 2007
actually, house prices (i'll give you benefit of the doubt that when you say "value", you mean adjust for inflation or "real" prices) HAVE *almost* doubled in the past 8 years...
now, since world war II, it has done nothing but "keep up" with inflation.
notice anything strange in the graph?
umm... err... maybe the HUGE HOUSING BUBBLE?
Guess what's going to happen. Yep. It's going to revert back to the norm. Which is to merely, keep pace with inflation, like it has ALWAYS done since World War II.
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The "math" consists of - it has worked for the past 10 years therefore it will keep working.
For a mortgage of that size, figure 8% interest.
But the house will double in value, so its ok...
houses aren't doubling in value in a year, maybe over 10 years.
that was called sarcasm....
Hard to distinguish your sarcasm
actually, house prices (i'll give you benefit of the doubt that when you say "value", you mean adjust for inflation or "real" prices) HAVE *almost* doubled in the past 8 years...
http://biggestpurchase.com/images/hpgraph.jpg
now, since world war II, it has done nothing but "keep up" with inflation.
notice anything strange in the graph?
umm... err... maybe the HUGE HOUSING BUBBLE?
Guess what's going to happen. Yep. It's going to revert back to the norm. Which is to merely, keep pace with inflation, like it has ALWAYS done since World War II.
Now, get that realtor shill BS outta here.