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Old 11-15-2009, 06:56 PM
 
3 posts, read 16,885 times
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Does anyone have an opinion regarding the upcoming auction for units at the Solaria in Riverdale? I'm considering buying a unit and then renting it out. Do you think prices will continue to drop in Riverdale? How is the rental market in the neighborhood? i am looking at a 2BR or maybe a 1BR. Any insight will be greatly appreciated!
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Old 11-16-2009, 07:48 AM
 
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My opinion is that the condos were supremely overpriced during the "boom" times...and their current prices are not a deal, but current market value. For example, if you price a typical 64oz of Tropicana Orange juice for $6 bucks..that would be outrageous, but then "discount it" to $3.50, that's not a deal it's the normal value. This auction is selling at market value, and not a deal. If you like Riverdale and looking to buy, this is brand new and nice with cool amenities, however I would not buy it because I believe a 2 bedroom condo is worth $900,000 and I am getting it for $450,000...that's not a deal..that's just the market value..and the original prices were ludicrous...which is why they did not sell even in the best of times.
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Old 11-16-2009, 09:09 AM
 
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If you picked up one of these units for $400k, assuming 20% down, 30 year mortgage at 7%, you are looking at $2200/month on the mortgage alone. You'd need to be able to pull in at least $3k in rent to make it not be a huge money drain, there are a lot of comparable luxury-type units in that price range available right now in areas with the same or better commute to midtown.

I guess if your objective is to have the rent somewhat pay off what it costs to own the thing and then own it outright some time down the road or perhaps sell it for more than you paid, you might do not too bad.
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Old 11-16-2009, 09:53 AM
 
Location: Beautiful Pelham Parkway,The Bronx
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Why would you assume a 7 % mortgage rate when 4.75 or 4.875 is quite available for anyone with good credit ?
2% or more makes a huge,huge difference in payments.
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Old 11-16-2009, 10:25 AM
 
Location: Washington, DC & New York
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Don't forget to add another $1100 or so for condo fee (2BR), taxes, and parking fee to the monthly carrying cost. I don't know that you could realistically rent the apartment to break-even. Also, you need to check the condo documents to see if there is a rental restriction on the unit, since some condo association by-laws do restrict rentals, not unlike co-ops.

A couple of people I know who were interested opted not to buy because of the location, directly on the parkway, the balconies were too small, and the parking garage was not in the building, but in a separate one that's connected by a covered walkway.
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Old 11-16-2009, 10:38 AM
 
Location: Beautiful Pelham Parkway,The Bronx
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^^^^
Also,Riverdale is a great area but real estate there has been suffering because of gluts that pre date the crash.There always seem to be lots and lots of coops,condos and rentals available so I would be very leery of purchasing with renting in mind .The rents tend to be lower than they should be considering the area.
If you really like the place and want to live there and can get a good deal that's another thing.
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Old 11-16-2009, 11:37 AM
 
Location: Washington, DC & New York
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Another aspect to the building is that it was marketed as a family building, with upscale/unique features, though the price point was similar to a full-service building in Manhattan. The problem with that strategy is that families can buy a $1-2M house in Riverdale as opposed to a family apartment, and not have monthly condo fees, though the taxes will be higher on the house. If they're making the move to Riverdale from Manhattan, the luxury of a private yard, garage, driveway, and more space in a house to which they can add-on/renovate makes an argument against a higher-end family apartment.
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All the world's a stage, and all the men and women merely players: they have their exits and their entrances; and one man in his time plays many parts, his acts being seven ages.
~William Shakespeare
(As You Like It Act II, Scene VII)

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Old 11-16-2009, 03:13 PM
 
1,014 posts, read 2,530,583 times
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Quote:
Originally Posted by bluedog2 View Post
Why would you assume a 7 % mortgage rate when 4.75 or 4.875 is quite available for anyone with good credit ?
2% or more makes a huge,huge difference in payments.
Very true. At 4.75, the monthly mortgage is $1,700.

Sorry, I used 7 because that was roughly what it was the last time that I had an encounter with the mortgage market (2008). Rates have certainly come down since then.
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Old 11-17-2009, 01:22 PM
 
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Read the offering plan and contract, you can't rent for 12 months after you close.
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Old 11-17-2009, 06:39 PM
 
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Thanks for the info. I didn't know about having to wait one year because renting it out. There are so many pages in the offering plan! Where did you find that info. I searched the document and couldn't find that part
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