bodhipooh wrote:
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SRhia wrote:
Is it only me, or do others also feel that the Gannon is priced very high? I understand the high rises with amenities (door man, pool, etc) can ask for a premium, but I don't think the Gannon has a pool? Or doorman???

Just curious, and want to understand.

Already discussed previous, but I will reiterate a few things:

This building is definitely overpriced. So much so that prices had to be adjusted a few months (6?) after they started to sell them. I have been inside twice, to look at units, and there is no way I would buy there. ZERO amenities (except for a nicely executed roof deck with nice grills) but really odd layouts in some units. The largest units have a lot of empty space that would be hard to put to use. They have some nice touches in some units (neatly done wood inlays along the sides) with BEAUTIFUL kitches (a huge plus to me, but others may think it is a waste) and some tacky/weird choices (illuminated crown moulding!?)

In conversation with the guy in charge (very nice and proper man) he tries top spin of $/sf as not applicable to JC (??) but the truth is that those Gannon units are still too high, even after the price adjustment. I think they were betting on low inventory for condos driving sales, but almost a year later and they have sold less than half the units. The last time I toured the place (about 4 months ago?) they had only sold 7 or 8 units (out of 27-28?) Very slow pace, obviously. If things do go south in the DTJC market, they will be hurting. And, by this time next year, The Oakman will be open and they will be competing against a building that has true luxury amenities. It will be a tough sale for The Gannon.

bodhipooh wrote: Quote:

landshark wrote: Quote:

SRhia wrote: Thank you @jcguy05 for the long reply! I'm curious though (and this is for all real estate investors): what is the advantage/disadvantage of cashing out? Assuming someone brought a property for investment (renting out) 5 years ago, and is currently breaking even (or making money) on rent. Why (or why not) would you cash out now? I can think of: Advantage: - cashing out to get cash on hand. - Cash can be available for next investment property when market crashes. Or cash available to make other investments (eg stocks, etc); - less to worry about (no tenants calling about problems!!!) Disadvantage (??? Or perhaps rather "reasons to keep it"???): - Tenant is already paying rent, so you're building equity. Why not keep it??? In 30 years (or length of mortgage), you'll own the property. And given it's a long time horizon, the property will appreciate in value by then anyway. - no need to go through the hassle of selling (probably not a legit reason So - did I miss something? Why are some others reasons to sell vs. keep an investment property knowing the market is going down? Trying to learn here (since looks like there're some pros here)

Disadvantage: Taxes, unless you can make a 1031 exchange work (which is not easy and you are then buying at the peak) you lose a good chunk of equity that is currently working for you.

THIS. By the time you factor out original closing costs, realtor fees, whatever other fees associated with selling, and all the federal real estate taxes, you may have VERY LITTLE to show for your investment unless the property has really appreciated A LOT. If you are talking about a 10% gain, you haven't made any money, really. True story: a friend of mine is about to clear 100K on an investment property (after owning it for 10 years) and his take on the whole experience is "NEVER AGAIN". Once you factor in all the associated costs and headaches from the past 10 years, along with costs I mentioned above, the "gain" is reduced to almost nothing. All these TV shows make it look like an easy thing to do, but the market can be tricky (and fickle) and unless you are flipping for huge immediate gain, your long term investment must really, really appreciate for it to be worthwhile or profitable.

landshark wrote:
Quote:

SRhia wrote:
Thank you @jcguy05 for the long reply!

I'm curious though (and this is for all real estate investors): what is the advantage/disadvantage of cashing out? Assuming someone brought a property for investment (renting out) 5 years ago, and is currently breaking even (or making money) on rent. Why (or why not) would you cash out now? I can think of:

Advantage:
- cashing out to get cash on hand.
- Cash can be available for next investment property when market crashes. Or cash available to make other investments (eg stocks, etc);
- less to worry about (no tenants calling about problems!!!)

Disadvantage (??? Or perhaps rather "reasons to keep it"???):
- Tenant is already paying rent, so you're building equity. Why not keep it??? In 30 years (or length of mortgage), you'll own the property. And given it's a long time horizon, the property will appreciate in value by then anyway.
- no need to go through the hassle of selling (probably not a legit reason

So - did I miss something? Why are some others reasons to sell vs. keep an investment property knowing the market is going down?

Trying to learn here (since looks like there're some pros here)

Disadvantage:
Taxes, unless you can make a 1031 exchange work (which is not easy and you are then buying at the peak) you lose a good chunk of equity that is currently working for you.

SRhia wrote:
Is it only me, or do others also feel that the Gannon is priced very high? I understand the high rises with amenities (door man, pool, etc) can ask for a premium, but I don't think the Gannon has a pool? Or doorman???

Just curious, and want to understand.

SRhia wrote:
Thank you @jcguy05 for the long reply!

I'm curious though (and this is for all real estate investors): what is the advantage/disadvantage of cashing out? Assuming someone brought a property for investment (renting out) 5 years ago, and is currently breaking even (or making money) on rent. Why (or why not) would you cash out now? I can think of:

Advantage:
- cashing out to get cash on hand.
- Cash can be available for next investment property when market crashes. Or cash available to make other investments (eg stocks, etc);
- less to worry about (no tenants calling about problems!!!)

Disadvantage (??? Or perhaps rather "reasons to keep it"???):
- Tenant is already paying rent, so you're building equity. Why not keep it??? In 30 years (or length of mortgage), you'll own the property. And given it's a long time horizon, the property will appreciate in value by then anyway.
- no need to go through the hassle of selling (probably not a legit reason

So - did I miss something? Why are some others reasons to sell vs. keep an investment property knowing the market is going down?

Trying to learn here (since looks like there're some pros here)

user1111 wrote:
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vindication15 wrote:
Quote:

user1111 wrote:
Don't get butt hurt, they are under water and one of them post here regularly. No need for me to make shit up. Get over it.

I don't need names. Name of condo building, approx purchase price in 2006. You don't have those two pieces of info so stfu.

There is no luxury condo building bought in 2006 in dtjc that is worth less today untless you spell dtjc G-R-E-E-N-V-I-L-L-E

Thanks for replying back with a list of foreclosures which have nothing to do with your original statement....

I never use the word luxury, because I do not consider anything down there luxury. I am suppose to stfu because you don't like what I have to say or where I live. FYI I love where I live and you can eat my ass, all the bullshit you spit you should be quite good at it.

vindication15 wrote:
Quote:

user1111 wrote:
Don't get butt hurt, they are under water and one of them post here regularly. No need for me to make shit up. Get over it.

I don't need names. Name of condo building, approx purchase price in 2006. You don't have those two pieces of info so stfu.

There is no luxury condo building bought in 2006 in dtjc that is worth less today untless you spell dtjc G-R-E-E-N-V-I-L-L-E

Thanks for replying back with a list of foreclosures which have nothing to do with your original statement....

user1111 wrote:
Quote:

JCMan8 wrote:
Quote:

user1111 wrote:
Quote:

I bet the picture for prime downtown neighborhoods is very different.

Downtown Jersey City Foreclosures
35 results. I know two out of the 35

The Heights Jersey City Foreclosures
158 results.

Greenville Jersey City Foreclosures
269 results.


Journal Square Jersey City Foreclosures
51 results.

Bergen-Lafayette Jersey City Foreclosures
108 results.

There are shitty areas of DTJC too. Maybe those 35 are dumps. Or the homeowner lost their job.

BLAH, BLAH, BLAH, BLAH who cares. They are under water.

user1111 wrote:
Don't get butt hurt, they are under water and one of them post here regularly. No need for me to make shit up. Get over it.

Time horizon is dependent on interest rates, my prediction is 2-3 years when the impact will be felt. It will not be a big pop like in 08 but a slow multi-year grind downwards - end result is the same, your property loses value.

iGreg wrote:
Figure 700k for this looked like tits on bull to some half assed yuppie trying' to escape BKLYN.

http://www.zillow.com/homedetails/72- ... y-NJ-07306/38891294_zpid/


Holla @ Yo Boyz

user1111 wrote:
Quote:

jcneighbor wrote:
Um, in Foreclosure doesn't necessarily mean it was under water. The bank/lending company foreclosed because of non-payment...

UNDERWATER REAL-ESTATE: A home purchase loan with a higher balance than the free-market value of the home. This situation prevents the homeowner from selling the home unless s/he has cash to pay the loss out of pocket. It also prevents the homeowner from refinancing in most cases. Thus, if the homeowner wants to sell the home because s/he can't afford the mortgage payments anymore, perhaps because of a job loss, the home will fall into foreclosure unless the borrower is able to renegotiate the loan.

jcneighbor wrote:
Um, in Foreclosure doesn't necessarily mean it was under water. The bank/lending company foreclosed because of non-payment...

SRhia wrote:
@jcguy05 - how long do you think it'll take prices to come down? We've been dreaming to upgrade from an apartment to brownstone, and is now saving money. I know no one can predict the future, but I'm interested in hearing your thoughts on how long it will take to deflate this time around.

Just as an anecdote, I have a friend who lives in Brooklyn Heights. Her husband is in finance (a "bond" guy), and have told his wife (my friend) to sell their apartment there. He sees a major downturn (worse than 2008), and for much longer, and therefore does not want their assets tied to illiquid real estate. Her apartment was sold in 2 days, in cash, above asking price. She also said that a lot of her neighbors have sold as well in the area.

SRhia wrote:
Quote:

JCMan8 wrote:
SRhia, the last time we had a major downturn, the stock market plummeted. Do you know if the people you are referring to also took their money out of the market?

The husband told me (1) not to go into bonds (coming from a bond guy); (2) not time for commodities yet either; (3) stock market is still the place to be for the long run. I think what he meant (if I understood him correctly) is that the stock market may/probably will tank (along with everything), but once that happens, between bonds and stocks, he'd still put his money in stocks as that would still outperform bonds in the loooooong road to recovery.

I'm shifting my portfolio to cash (not just based on what he told me, but from all the reading I've done), and is waiting for that opportunity that I'll be set for retirement. Fingers crossed!!!!!

PS I just hope I'll pull the trigger at the right time. Otherwise, the bet could go very wrong, and I'll lose my pants and say bye bye to retirement

JCMan8 wrote:
Quote:

user1111 wrote:
Quote:

I bet the picture for prime downtown neighborhoods is very different.

Downtown Jersey City Foreclosures
35 results. I know two out of the 35

The Heights Jersey City Foreclosures
158 results.

Greenville Jersey City Foreclosures
269 results.


Journal Square Jersey City Foreclosures
51 results.

Bergen-Lafayette Jersey City Foreclosures
108 results.

There are shitty areas of DTJC too. Maybe those 35 are dumps. Or the homeowner lost their job.

user1111 wrote:
Quote:

I bet the picture for prime downtown neighborhoods is very different.

Downtown Jersey City Foreclosures
35 results. I know two out of the 35

The Heights Jersey City Foreclosures
158 results.

Greenville Jersey City Foreclosures
269 results.


Journal Square Jersey City Foreclosures
51 results.

Bergen-Lafayette Jersey City Foreclosures
108 results.

I bet the picture for prime downtown neighborhoods is very different.

user1111 wrote:
Quote:

Wishful_Thinking wrote:
Quote:

user1111 wrote:
More than 240K N.J. mortgages said to be 'seriously underwater' What bubble?

I wonder if you have to further break down the statistics, by ward or neighborhood. For instance, in NYC there are lots of foreclosures in outlying, less gentrified areas like Flatbush but practically none in Manhattan. The average may not show the full picture

I know many of my fellow owners in our building in the Heights are either underwater or equity neutral, because the Heights is still stuck in the doldrums. I bet the picture for prime downtown neighborhoods is very different.

I have two personal friends downtown who are under water. Their condos are nit worth what they paid in 2006.

T-Bird wrote:
Quote:

user1111 wrote:
Quote:

Wishful_Thinking wrote:
Quote:

user1111 wrote:
More than 240K N.J. mortgages said to be 'seriously underwater' What bubble?

I wonder if you have to further break down the statistics, by ward or neighborhood. For instance, in NYC there are lots of foreclosures in outlying, less gentrified areas like Flatbush but practically none in Manhattan. The average may not show the full picture

I know many of my fellow owners in our building in the Heights are either underwater or equity neutral, because the Heights is still stuck in the doldrums. I bet the picture for prime downtown neighborhoods is very different.

I have two personal friends downtown who are under water. Their condos are nit worth what they paid in 2006.

We bought pre-construction in 2007 and are up 20% to 25% based on recent sales in our building. Many units selling at and above asking price in a week or less. "Downtown" is a very broad description. A walkup in a 100 y/o plus building on sixth street is not the same as Crystal Point, 77 Hudson or a brownstone in Paulus Hook.

user1111 wrote:
Quote:

Wishful_Thinking wrote:
Quote:

user1111 wrote:
More than 240K N.J. mortgages said to be 'seriously underwater' What bubble?

I wonder if you have to further break down the statistics, by ward or neighborhood. For instance, in NYC there are lots of foreclosures in outlying, less gentrified areas like Flatbush but practically none in Manhattan. The average may not show the full picture

I know many of my fellow owners in our building in the Heights are either underwater or equity neutral, because the Heights is still stuck in the doldrums. I bet the picture for prime downtown neighborhoods is very different.

I have two personal friends downtown who are under water. Their condos are nit worth what they paid in 2006.

SRhia wrote:
Is it only me, or do others also feel that the Gannon is priced very high? I understand the high rises with amenities (door man, pool, etc) can ask for a premium, but I don't think the Gannon has a pool? Or doorman???

Just curious, and want to understand.