For the past 7 or so years, I’ve been renting an apartment in the East Village of NYC. I make it down to the city a few times a month, and it’s my getaway from all the stresses in the 5-1-8. I LOVE the apartment and I’m so lucky to have it. I am lucky MOSTLY because it’s a rent controlled apartment. A friend of mine who has had the apartment since the 1980s rents it to me. It’s $500/month, and it should probably rent for about 6 times that. (When I tell friends of mine about it who LIVE in NYC, they get angry at me. Real anger, not play anger. They live in a shoebox and pay 3,000 dollars a month.)
But as nice as it is to live in that apartment, I still hate throwing money away in rent. I’d rather put my payments towards owning a property (and you should, too!!!!). So I’ve had my eyes open for the past year or so, but haven’t really had the money to put towards anything because I spent an arm and a leg on some stupid investment property in Panama that I will never be able to sell.
As much as I love the East Village, I would rather live in the West Village. It’s a little more adult, there are better restaurants, and the streets are quieter and prettier. I was walking down West 12th Street the other day, and there was a “For Sale” sign on the front of this small but cute brownstone building. It reminded me of any one of the beautiful brownstones you would find in Center Square just off of Lark Street. You know, it looks like Sesame Street.
So, after days of waiting, I get an email back from the real estate broker who’s showing the building….
The West Village brownstone is on sale for….. $7,600,000. (no that is not a typo. I meant to put all those zeros in there.)
Can you f. believe it!?!?!? Does the building come with $7 million dollars sitting on top of the mantle? I couldn’t even wrap my brain around paying that much for anything. But you know, when you want something, you want it. So I went onto Simple Mortgage Calculator dot com and, for shits and giggles, wanted to see what my mortgage payment would be each month…
$ 44,351.54 a month !!!!
… and that doesn’t even include the taxes or insurance. Or a money tree.
I literally squinched my eyes when I read it on my computer screen because I thought “wait, that can’t be.” But it can be, and it was. It’s so depressing. Who the hell has that kind of money! Whoever it is, I’m sure they aren’t going on Simple Mortgage Calculator dot com to see if they can afford it.
But if you ARE the type of person who can write a check like that, here is the listing.
People who can afford it don’t go to mortgage calculatorDotcom…and they don’t say “squinched.”
Someday, MB. Someday you will be a burrito’n beer bazillionaire barron.
Then you can say “squinched! squinched! squinched!” all you want and turn your nose up at pedantic brokers peddling $7M peasant dwellings.
pfffft You could even throw in a “I wave my genitals in your general direction!” just to give them a little what-for. Shoooot.
I guess that’s the price tag to have Liv Tyler as your neighbor!
That is amazing! It is beautiful and a 3 fam. but If I had that kind of money and wanted to be in the city it also better come with a maid, chef, driver, personal ASSistant (who is really hot) and full open bar 24/7
Ok, so I think you are going to stay in the East Village in your current apartment, right??? Wow, that is some kind of money.
Hey Matt, I am no real estate broker and don’t know how it works in NYC but commission on a sale like that would be a nice piece of ca$h. At 4 % it is over $300,000. wow
You’re too funny. Most people live outside the city and comute into the city for work. You, in a manner of speaking, do the opposite.
Matt,
I know it’s not cool to live off the island, but Brooklyn has some nice brownstones in it. It is also a young & hip area.
You love using strike through font. It’s ok though bc I do too.
I just looked at the picture quick and thought it was a house in Center Square. Sigh, you can dream can’t you?
Before I read this and just saw the picture, I really thought that was a brownstone on Hudson, gorgeous place though…the need for the high speed train increases daily
Yeah that would only be 2 shmillion in Brooklyn.
Before you give up, I’d do some research on how much you could rent the top two floors out for…………………
the human services industry just doesn’t cut it anymore.
You could always make a lowball offer. It never works on Million Dollar listing, but you never know.
the same people that can write a check for that bought tickets from stubhub for last night’s game for $4000. insane. i don’t think i want to be that person – i imagine their wallets are big, but so are their problems. (mo’ money…eh…you know the rest.)
Man… that’s a lot of burritos…
that’s pretty ridiculous. That sounds like one of those “make me move” asking prices people put on Zillow.com (check out http://www.Zillow.com if you haven’t – it’s a pretty cool real estate site that has a lot of information that’s “relatively” accurate on most residential areas).
If you can’t rent a place out for At least what the mortgage payment would be – then it doesn’t sound like a good investment. But that’s NYC real estate for you.
Wow… the things you could do with all that money….
Basically the total of the last 7 years rent that you’ve paid would be the same as ONE MONTH of the new place. I think you have answered your own question. Keep that apartment!
Homeownership as a good investment is one of the great myths perpetuated in modern society. By the time you add up all the money spent in taxes, repairs, upkeep, appliances etc., the average homebuyer LOSES thousands.
Now, you can’t put a value on the conveniences of owning a home, no noisy upstairs neighbors, freedom to paint how you like, entertaining, etc.
But the fact of the matter is, the vast majority of people (excluding those who buy homes for flipping or renting) would be far better served by renting and putting the money they would be spending on taxes and maintenance into a simple money market account or CD.
I won’t even mention the stock market, (whoops, guess I did).
If you don’t believe me, google “the myth of homeownership” and read some of the results.
#20. It’s called building equity.
Paying your own mortgage vs paying someone else’s mortgage (renting)
In order to pay for the house dressed up as the Bombers Burrito making federal minimum wage without taxes being taken out you would have to work 1,062,937.06 straight hours which equals over 121 years.
you are rent controlled, stay put, don’t be looking at other areas.
# 20 you are stupid, you are paying the maintenance taxes etc + profit to the landlord and your getting nothing out of it. Home ownership is how 99% of people build the most wealth. your dumb, seriously.
As one moves up the food chain you find out life presents you with choices: be a big fish in a little pond (Albany)…..or little fish in a REALLY BIG pond (NYC).
Personally I believe we make out better here, but what ever works for you….
@24
Before you start insulting people learn how to write; it’s you’re, not your.
I expressed an opinion, if you don’t like it that’s fine. But let’s not resort to calling one another names.
It’s rude and infantile.
@ #25, I agree with you. I am not looking to leave Albany, I love it here. I just like seeing what other ponds are like from time to time.
Albany is an amazing place to live.
I agree with you, I like seeing other ponds!! It is pretty cool b/c you have the city, the suburbs, & the country all rolled into one. But, I hate to say it but Upstate NY is pretty depressed- Plus, it’s f&^king freezing!!!!!!!!!!!!
Zack, we are arguing about home ownership as a way to build wealth not grammar. This is a blog, not a formal essay. I bought my house sometime ago and based on comparable sales within the last year I currently have about $150,000 in equity in my house on top of my initial down payment. $150,000 I never would have had if I hadn’t bought it. If you rent you pay all of the expenses you are still talking about, the landlord isn’t paying them, you are paying them every month plus his profit. He pays down the mortgage, builds equity and you move out with nothing and most likely without your security deposit. So I could sell, take my $150,000 tax free and stick it into a money market account, I could blow it on hookers, buy a Ferrari, travel the globe or I could apply it to my next house. Renters do not have this option
Wow! I wouldn’t give up the rent deal you’ve got for a split second! Besides, the walk between the two Villages is usually very entertaining. Now I’m pyched for an excursion. Usually drive and find a parking spot on Horatio or Jane then pickup bangers at Myers on Hudson. Yum.
Zac- not to put to fine a point on it, but your original post goes beyond opinion. sure read to me like “it’s a fact- homeowners loose money”.
The other missing point is that a home is different from all other investments- it actually gets used.
Forget the 7 million dollar house, how do I get a $500/month apartment in Manhattan? I’ll sell my house and move there this minute :D
I look forward to more good info.