Federal Interest Rates and Rental Prices

[Electrician4you]

Originally Posted by mathjak107

they had deals like 13 months and pay for 12.

Lol marketing at its finest. I'm willing to bet the 12 months were padded to cover that bakers dozen.

[mathjak107]

whatever works , right ?

[Major Barbara]

Originally Posted by Electrician4you

Lol marketing at its finest. I'm willing to bet the 12 months were padded to cover that bakers dozen.

They were padded to begin with, assuming the ownership group was making a profit. Meanwhile, what really kills profits is empty units. Almost any deal is better than no deal at all. If the market turns in such a way that you have an overhang in units at your standard levels of rents and fees, you start cutting deals. Real actual money-saving deals. 2008-09 were such years, as increased uncertainty made people wary of any actual commitment. By 2010 however, a shift from ownership to the rental market had built up steam and strong demand for rental units made deals unnecessary. At least that's what I was able to observe.

[mathjak107]

here in nyc we have a rental shortgage. thanks to rent stabilization not one middle class rental has been put up since the 1970's. only special projects , affordable housing or things with income restrictions were put up on the rental side.

co-ops and condo's were built along with luxury rentals . so rents are increasing way beyond the rate of inflation.

the irony is we own co-ops in manhattan with rent stabilized tenants yet live in a stabilized building ourselves in queens.

my wife has been here 35 years but with all the capital improvements we are not much below market at all.