If there is one thing I have learned from previous "normal”, post bust(ing) markets: crappy apartments don't trade. Or when they do trade it’s at a substantial discount to same lines without handicaps.
Let me define "crappy" for you (I will try not to get to technical.lol): a low floor or any floor for that matter, where every (most) windows face a wall, although this can be more tolerable at higher altitudes. A six flight walk up, a ground floor unit, any apartment where part of it would be called a "cellar" by your Grandfather. I will stop there; oh wait, sky high maintenance or more than a 15 minute walk to a subway.
The place could need an absolute gut renovation; no problem. As long as when you're done you can see sky and other pleasant things from your window and your maintenance payment is not a whale. You can ride out bad markets, pay down higher interest rates. You cannot tear down the building you stare at or reduce maintenance that is 35%+ higher than most comparable units. No matter how you justify your number; most buyers are scared off by excessive maintenance charges.
There are many examples of languishing units at what most of you would consider a very good discount from peak. I hate to name names but have a look at a particular unit on west 12th street near 5th avenue.
When I started in this business in 1991 these types of apartments became rentals. But just as a low tide exposes all rocks, a rising tide made lemons into lemonade, and currently there is a glut of lemonade and some people are finding out some “brands” are better than others.
When people fly down to Costa Rica to buy property we say, “don’t leave your brain on the plane". I don't have a cute expression for buying in today's Manhattan market place, maybe "don't leave your brain on the A train"?
All this talk about bottoms; take it with a grain of salt. You are not going to miss the market, but you could miss out on a home you really love, though that can happen anytime. Sure we'll get over this hangover, people will forget the pain and some event will kick start another mad run. But that won't be coming for quite some time, at least 5 years in my opinion. Maybe we even learned our lesson this time, maybe there won't be any more "irrational exuberance". Perhaps the damage runs to deep; time will tell.
So in the mean time buy wisely.
Let me define "crappy" for you (I will try not to get to technical.lol): a low floor or any floor for that matter, where every (most) windows face a wall, although this can be more tolerable at higher altitudes. A six flight walk up, a ground floor unit, any apartment where part of it would be called a "cellar" by your Grandfather. I will stop there; oh wait, sky high maintenance or more than a 15 minute walk to a subway.
The place could need an absolute gut renovation; no problem. As long as when you're done you can see sky and other pleasant things from your window and your maintenance payment is not a whale. You can ride out bad markets, pay down higher interest rates. You cannot tear down the building you stare at or reduce maintenance that is 35%+ higher than most comparable units. No matter how you justify your number; most buyers are scared off by excessive maintenance charges.
There are many examples of languishing units at what most of you would consider a very good discount from peak. I hate to name names but have a look at a particular unit on west 12th street near 5th avenue.
When I started in this business in 1991 these types of apartments became rentals. But just as a low tide exposes all rocks, a rising tide made lemons into lemonade, and currently there is a glut of lemonade and some people are finding out some “brands” are better than others.
When people fly down to Costa Rica to buy property we say, “don’t leave your brain on the plane". I don't have a cute expression for buying in today's Manhattan market place, maybe "don't leave your brain on the A train"?
All this talk about bottoms; take it with a grain of salt. You are not going to miss the market, but you could miss out on a home you really love, though that can happen anytime. Sure we'll get over this hangover, people will forget the pain and some event will kick start another mad run. But that won't be coming for quite some time, at least 5 years in my opinion. Maybe we even learned our lesson this time, maybe there won't be any more "irrational exuberance". Perhaps the damage runs to deep; time will tell.
So in the mean time buy wisely.
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