NationStates Jolt Archive


WTF, over?? Real estate in Manhattan is outrageous!

Eutrusca
04-12-2005, 17:33
COMMENTARY: OMG!!! A one bedroom co-op for $240,000.00??? To someone who will soon feel great relief at making his last $640.00 mortgage payment, this is virtually unimaginable!

On the plus side, the girl is cute as hell! :D ( Make sure you watch the video! )


Out of the Nest, Into a Studio (http://www.nytimes.com/2005/12/04/realestate/04hunt.html?th&emc=th)


By JOYCE COHEN
Published: December 4, 2005
TURNING 30 and still living with her mother - that was one milestone Marlie Hall did not want to reach. Ms. Hall had reasons for staying so long in the house where she grew up in Bay Shore, on Long Island. As an only daughter (she has three brothers), she was reluctant to leave her divorced mother. And, as a television reporter and anchor, she was aware that a job opportunity could arise somewhere far away.

http://img509.imageshack.us/img509/9642/nycstudio9cf.jpg (http://imageshack.us)

But as time passed, it seemed less likely that Ms. Hall - who by now was host of "Recipe for Success" on the Food Network - would move away. She started to hunt for her own place in Manhattan.

Her budget allowed for around $300,000 - more if the place had a low maintenance and down payment, less if it didn't. She didn't care about size, but did care about condition. A $240,000 listing for a small one-bedroom co-op on East 90th Street, with a maintenance of $500 and a 10 percent down payment, was seductive.

"I asked all the right questions and got all the right answers," she said. But her interest turned to annoyance when she showed up, accompanied by her mother. The maintenance was higher than advertised, and a 20 percent down payment was required. Nor did she know the apartment was a walk-up.

As they trudged up to the fifth floor, her mother declared she would never come to visit.

"They were showing her junk for a lot of money," said her mother, Marie Hall. "I though that was disrespectful for a real estate agent to show her that. You don't buy something for that kind of money, and then you are going to spend another $100,000 to fix it."

Ms. Hall decided to leave her mother out of it. "Knowing I was leaving soon, my mother was having separation anxiety, and became difficult and kind of overbearing," she said. "When I started to look at places, she was not that supportive."

The broker had other places to show her. Most were run-down or had an uncomfortably high monthly maintenance. One even had a bathroom outside the apartment. "I am not kidding," Ms. Hall said. "You physically had to walk out your front door to get to your private bathroom."

Last winter, though, she saw a tiny studio in a co-op building on West 57th Street. The size, 300 square feet, "was O.K. with me," Ms. Hall said.

The asking price was $239,000, with a maintenance of around $600. "It was awash in sunlight and was really cheerful," she said. "It had a window in the bathroom. I didn't think they would accept $220,000, but they did."

Yet, for some reason, she wasn't very excited about it. After a month, her lawyer still hadn't received the contract. "I speculate the seller was stalling to see if more buyers would show interest after the New Year so they could command a higher price," she said. "I never signed a thing."

While she waited, an agent with whom she had corresponded, Gavin Parker of Tungsten Properties, sent her an e-mail with a brief but intriguing listing: "Condo, financial district, $310,000." She decided to take a look.

Sales were just starting for the 90 condominium units in the building, on Pine Street, built in 1894 as an office building. "Such was the demand that the brokers were booked up two weeks in advance," Mr. Parker said. He figured the studios would be gone by then. After asking about cancellations, he snagged an appointment for the next day.

It was raining, and Ms. Hall didn't feel like going all the way downtown. She thought about canceling, but felt bad about doing so on such short notice. The building, a city landmark in the Romanesque Revival style, was beautiful despite a shroud of scaffolding.

"The sales office was madness," said the listing broker, David Wanamaker of Prudential Douglas Elliman. "That building sold out in less than three months."

The model studio was available for $355,000, completely furnished. Ms. Hall was prepared to take it. But a buyer of a $310,000 studio backed out a few hours later. "Marlie let us know she wanted something cheaper," Mr. Wanamaker said. "Luckily, something came back on and she answered the phone when we called."

Ms. Hall said, "I didn't think $310,000 for a studio was such a bargain." But amenities made up for it, and the monthly charges were only $470. She found herself much more excited about this one.

"There was every last thing I wanted and then some," she said. "Laundry on every floor sounds like not the biggest deal in the world, but I looked at places where you had to go a few blocks away."

Then she had to make the dreaded phone call, telling the broker with the 57th Street listing that she was pulling out. "I suppose I could have had my lawyer do it, but she had done a lot of legwork on my behalf, so I felt I needed to tell her voice to voice," Ms. Hall said.

"I said it's not something I planned and I feel really bad, but you know how the broker thing works," she said. "She was really dramatic and emotional. I was kind of feeling guilty about it but there was nothing in writing, I wasn't committed to her, and I didn't do anything illegal or unethical. It was ironic because, had she gotten me the contract a month earlier, we wouldn't have had this situation."

Still, months of construction delays ensued. During the wait, Ms. Hall traveled to Haiti with a doctor friend, shooting footage for a documentary, "Mission to Sassier," about a medical clinic in an impoverished Haitian village. She turned 30. She finished the documentary.

Last month, nine months after her purchase, she at last moved into her cozy, 430-square-foot studio. "I was feeling sort of anxious, because I was living with my mother my whole life," she said. "I had some apprehension, like, 'Will I be lonely?' The first night I slept with a blanket on the floor. It wasn't the most comfortable thing in the world, but it was special to me." By the second night, she had a new mattress.

Ms. Hall was among the first to move in. "It's kind of cool because I have the building all to myself," she said. Soon, she knows, "when I go to the gym there will be somebody on the treadmill and I'll have to wait."

Her mother approved of the condo, though she hasn't yet seen it. "She even gave me some money toward the down payment," Ms. Hall said, "so in the end she was really supportive."
Teh_pantless_hero
04-12-2005, 17:46
Big cities have much higher living costs, and higher wages. Brand new, two-story, six bed, two bath, who knows how many square foot houses in a designed-to-be-nice neighborhood is around $300,000. But this is a suburb of only the third largest city in Alabama and wages are lower. Anyone with high wages buys two-story houses on the really crappy rivers I wouldn't even want to visit much less live on. I guess rich people are obsessed with water, no matter how redneck the area is.
The Eliki
04-12-2005, 17:50
I guess some people really want to live in Manhattan for some reason.

Can't imagine why. As I recall, Shredder shrunk the entire city in the 90s.
Teh_pantless_hero
04-12-2005, 17:54
I guess some people really want to live in Manhattan for some reason.

Can't imagine why. As I recall, Shredder shrunk the entire city in the 90s.
Well, I guess that just means there is more living space.
[NS]Simonist
04-12-2005, 17:56
I guess some people really want to live in Manhattan for some reason.

Can't imagine why. As I recall, Shredder shrunk the entire city in the 90s.
But I've been there many times since then. I can assure you, the mini-majesty still allures and captivates. It makes the little rich girl inside of me think "I wanna buy a loft!", despite the fact that, once away from NYC, I realize how much I'd hate to live there after all....
Dobbsworld
04-12-2005, 18:24
In the last five years of living in my rented groovy downtown pad here in toronto, I've seen the prices for modest freestanding homes, and even attached and semi-detached homes, skyrocket right out of my affordability range. $600K (CAN) for a post-war fixer-upper isn't just steep, it's effing vertical. At prices like that, I'm happy to stay in my rent-controlled Federally-assisted housing co-operative.

The people I know who are buying houses are having to head waaaaay out of the city in order to do so, in the pre-fab suburban labyrinths. Not for me.
Fass
04-12-2005, 18:36
430 feet² ~ 40 m². That's tiny.
End of Darkness
04-12-2005, 18:43
I pay a couple thousand for three months in my dread little dorm room.
Ashmoria
04-12-2005, 18:44
you didnt read the whole article did you eut?

she paid $310k for a 430 sq ft studio PLUS $470/month maintenence (plus xmas tips for the staff eh?)

i cant imagine anyplace being worth living in a studio the size of a motel room.

so youre getting off quite cheaply.

HEY how do you come to be paying the final mortgage payment?? or are you talking about your WIFE"S house not the place you are living in?
Ashmoria
04-12-2005, 18:47
I pay a couple thousand for three months in my dread little dorm room.
do they feed you for that price?
Keruvalia
04-12-2005, 18:52
Cripes! My house is nearly 7 times larger than that apartment and cost 10 times less and I have a 2 acre yard!

Crazy New Yorkers.
Iztatepopotla
04-12-2005, 18:55
And still, NYC is cheaper than Tokyo!
Colodia
04-12-2005, 18:56
Wow, my stupid 5 bedroom 3 bathroom house was stolen for $270,000 by us.

Then again, we ARE selling for $700,000...

...Thank YOU Southern California real estate prices!
Marrakech II
04-12-2005, 19:06
Can tell you in my area house prices are getting crazy also. Past three years they have gone up 60%. Not nearly as fast as Cali but still at a healthly clip.
The Nazz
04-12-2005, 19:08
I can't imagine anyone who's lived in a big city expressing shock at those prices. Hell, here in Fort Lauderdale there are condos going up in my neighborhood, 1BR, for $800K. And my neighborhood is nothing special. My girlfriend and I both have better than average jobs and there's no way we can buy right now.
Dakini
04-12-2005, 19:11
The property values around my parent's house have gone up immensely. Their house is now worth around half a million (cdn) and they bought it for about half that (still making payments) but it's also a house with a big yard, not a studio apartment.
Domici
04-12-2005, 19:47
I guess some people really want to live in Manhattan for some reason.

Can't imagine why. As I recall, Shredder shrunk the entire city in the 90s.

Hey, tech always costs more when you miniaturize it.
Domici
04-12-2005, 19:49
The property values around my parent's house have gone up immensely. Their house is now worth around half a million (cdn) and they bought it for about half that (still making payments) but it's also a house with a big yard, not a studio apartment.

Yeah. My parents are worth almost a million dollars on paper, and we're still all living a working class life. They're generous and we still all live mostly paycheck to paycheck with only enough set aside for emergencies.
Vetalia
04-12-2005, 19:53
I guess it's supply and demand; there's a lot of demand, but limited supply which drives up prices. There are thousands of excellent jobs available in NYC, which is going to drive up demand for housing, which drives up prices.

The same thing happened in San Francisco during the dot-com bubble, but fortunately this growth isn't going to reverse itself like that did.
Eutrusca
04-12-2005, 19:56
I guess some people really want to live in Manhattan for some reason.

Can't imagine why. As I recall, Shredder shrunk the entire city in the 90s.
"Shredder?" [ perplexed look ] :confused:
Eutrusca
04-12-2005, 19:58
Simonist']But I've been there many times since then. I can assure you, the mini-majesty still allures and captivates. It makes the little rich girl inside of me think "I wanna buy a loft!", despite the fact that, once away from NYC, I realize how much I'd hate to live there after all....
[ motions you to the couch ] Now ... how long haf ve noted zis cognitive dissonance? :D
Eutrusca
04-12-2005, 19:59
I guess it's supply and demand; there's a lot of demand, but limited supply which drives up prices. There are thousands of excellent jobs available in NYC, which is going to drive up demand for housing, which drives up prices.

The same thing happened in San Francisco during the dot-com bubble, but fortunately this growth isn't going to reverse itself like that did.
"Fortunately?" [ confused look ] :confused:
Eutrusca
04-12-2005, 20:00
430 feet² ~ 40 m². That's tiny.
No kidding! I have better than twice that and sometimes get a bit claustrophobic! :eek:
The Nazz
04-12-2005, 20:02
I guess it's supply and demand; there's a lot of demand, but limited supply which drives up prices. There are thousands of excellent jobs available in NYC, which is going to drive up demand for housing, which drives up prices.

The same thing happened in San Francisco during the dot-com bubble, but fortunately this growth isn't going to reverse itself like that did.
More to it than that. A lot of the south Florida growth in prices is due to overseas investment. Since the dollar has been so weak against the Euro, lots of Europeans have been buying US property--they get more house for the same money over here. Problem is, at least down here, the working class is getting priced out. A lot of people who own currently can't sell because they can't afford to buy anything else, and they wouldn't be able to buy their own houses if they were in the market right now. The result is that they're stuck with a higher property tax bill, but little other actual benefit. If they want to sell, they have to move away.
Eutrusca
04-12-2005, 20:02
HEY how do you come to be paying the final mortgage payment?? or are you talking about your WIFE"S house not the place you are living in?
Huh? It's not her house. She's the one who left! :p
Vetalia
04-12-2005, 20:03
"Fortunately?" [ confused look ] :confused:

In San Francisco, the bubble burst and people lost their jobs, but prices stayed high. So, you have to deal with insane prices and can't get a job that pays enough to afford the rent, since the prices were bidded up by stock-option wealth.
Eutrusca
04-12-2005, 20:03
Cripes! My house is nearly 7 times larger than that apartment and cost 10 times less and I have a 2 acre yard!

Crazy New Yorkers.
Perzactly!

I suppose it's the old "demand generated cost" thang, but ... day-um! :eek:
Eutrusca
04-12-2005, 20:04
And still, NYC is cheaper than Tokyo!
eeep! OMG! :eek:
Eutrusca
04-12-2005, 20:05
Wow, my stupid 5 bedroom 3 bathroom house was stolen for $270,000 by us.

Then again, we ARE selling for $700,000...

...Thank YOU Southern California real estate prices!
Um ... [ hits Colodia up for a loan ] Heh! :D
Vetalia
04-12-2005, 20:07
eeep! OMG! :eek:

The land occupied by the city of Tokyo is "worth" more than the entire United States of America.
Eutrusca
04-12-2005, 20:07
I can't imagine anyone who's lived in a big city expressing shock at those prices. Hell, here in Fort Lauderdale there are condos going up in my neighborhood, 1BR, for $800K. And my neighborhood is nothing special. My girlfriend and I both have better than average jobs and there's no way we can buy right now.
OMFG!!!! "$800K" for a ONE bedroom??? [ faints ]

Well, since the closest I've ever been to living in a "big" city was about 15 miles outside of Cincinnati, Ohio, I really wouldn't know about the cost of living in one. :D
Vetalia
04-12-2005, 20:09
Well, since the closest I've ever been to living in a "big" city was about 15 miles outside of Cincinnati, Ohio, I really wouldn't know about the cost of living in one. :D

No kidding! I lived about 20 miles outside the city in Mason; where did you live?
Eutrusca
04-12-2005, 20:09
... the working class is getting priced out. A lot of people who own currently can't sell because they can't afford to buy anything else, and they wouldn't be able to buy their own houses if they were in the market right now. The result is that they're stuck with a higher property tax bill, but little other actual benefit. If they want to sell, they have to move away.
Um ... move to a like, cheaper location after selling your overpriced home?
Eutrusca
04-12-2005, 20:10
No kidding! I lived about 20 miles outside the city in Mason; where did you live?
A suburb called "Forest Park." :)
Ogalalla
04-12-2005, 20:13
I live in a 5 bedroom, 4 bathroom (3 full and 2 halves) house that is about 4,500 square feet. The house sits on about half an acre, and the neighborhood is very good. My parents bought it for around $200,000 and it would sell now for around $500,000. You NYC people sicken me with how much you are willing to spend on that small amount of footage.
Vetalia
04-12-2005, 20:15
A suburb called "Forest Park." :)

Damn, I think we were almost neighbors...I used to go to Blue Ash, Sharonville, Montogmery...did you live by the Ronald Reagan Cross County Highway? I remember when they repaved it; it took so long that by the time they were done the starting point needed repaving again.