Back to the 2001 Price for this Old Town 2-Bedroom? 1515 N. Wells
This 2-bedroom at 1515 N. Wells in the heart of Old Town just came on the market.
Out of the gate, it has been listed for $56,500 less than the 2004 purchase price and just $16,000 over the 2001 price.
Built in 2001, the unit has the standard features of the era including wood floors and a fireplace.
The kitchen has maple cabinets, granite counter tops and stainless steel appliances.
There is central air and garage parking included. This unit is a little unusual in that it actually has a laundry room, measuring 5×6, instead of simply a laundry closet.
Old Town has been a hot neighborhood, even during the bust.
Is this a deal for this location and with these amenities (parking, c/a, w/d)?
Or will it go even lower and sell under the 2001 price?
Paula Susman at @Properties has the listing. See the pictures here.
- Sold in June 2001 for $370,000 (included the parking)
- Sold in April 2004 for $442,500 (included the parking)
- Currently listed for $386,000 (includes the parking)
- Assessments of $417 a month (includes cable)
- Taxes of $6048
- Central Air
- Washer/Dryer in the unit
- Bedroom #1: 15×11
- Bedroom #2: 10×10
Great location…ordinary apartment.
~$2500 a month for this, or about the same (ok, maybe a little more) in rent for 1225 (with hella better amenities), when it’s finished?
Don’t know which genius came up with the idea of blocking an already narrow room with a fireplace?
Great location.
Unit 6A sold for $326,000 in October this year. The second bedroom is really really small, I believe 10′ x 9.5′.
“~$2500 a month for this, or about the same (ok, maybe a little more) in rent for 1225 (with hella better amenities),”
If you are comparing to a rental, then more like $2000 a month for this.
“If you are comparing to a rental, then more like $2000 a month for this.”
Just. No. Not for someone genuinely considering the two options, as a primary residence. No way that the typical person in that situation has enough *other* itemizable deductions to get that sort of tax benefit.
For you, sure. But you’re not the typical person weighing bt buying and renting an apartment.
“Just. No. Not for someone genuinely considering the two options, as a primary residence. No way that the typical person in that situation has enough *other* itemizable deductions to get that sort of tax benefit.”
I wasn’t counting any tax benefit at all. I just wasn’t counting principal payment.
Architect,
Specific question for you. Would a prefabricated assembly of a high end elevator cab be a possibility. It would seem like something rather feasible. Just on a basic internet search I found something like the attached. http://www.alookcabs.com/alookdesign.html#app=2470&1f9c-selectedIndex=1&9180-selectedIndex=4 I did a basic providence with the halogen lamp ceiling. Blue mirror above the handrails, stainless below them. Surprised how decent this looked. Question being, would this be shit or something very nice, if I found the right manufacturer. I spoke to them and shipping would be about two 4′ * 6′ * 4′ crates.
“I wasn’t counting any tax benefit at all. I just wasn’t counting principal payment.”
Fair enough, but then you need to have a repair/replacement reserve, too. PLace is ten years old.
For the record, here is my math:
(386,000 * .0325)/12 = 1045 (either opp cost of money or cost of borrowing, I count them the same)
6048/12 = 504 for taxes
417 = HOA
—————————
$1966
Sell in 7 years and I believe the transaction costs vs sale price will be about a wash. Anyone else is free to believe otherwise. Not interested in debating it.
“Fair enough, but then you need to have a repair/replacement reserve, too. PLace is ten years old.”
Well, that is what a portion of the HOA is for. I obviously haven’t looked at their books, but I assume they have a reserve fund that is funded from the monthly HOA dues for exactly that.
“Well, that is what a portion of the HOA is for.”
HOA pays for appliances, hot water heater, hvac?
“HOA pays for appliances, hot water heater, hvac?”
Appliances no.
Hot water heater, hvac, maybe. Depends on how those are supplied.
Anyway, I can’t imagine you would need to set aside more than 100 a month for that. That is basically a rounding error in my calc.
But this is all meaningless. Mainly wanted to point out that you shouldn’t use principal payment in rent vs own calc.
“Mainly wanted to point out that you shouldn’t use principal payment in rent vs own calc.”
Unless one is more pessimistic about future sale value than you are.
“Just. No. Not for someone genuinely considering the two options, as a primary residence. No way that the typical person in that situation has enough *other* itemizable deductions to get that sort of tax benefit.”
As far as this goes, you are looking at about $18k per year in interest + taxes. So there will be significant tax benefit (at least 6k over standard). That’s at least 150 a month which should cover any expenses/maintenance not detailed above.
“Unless one is more pessimistic about future sale value than you are.”
Even then. It is not appropriate to just use 100% of principal payment. You can apply some risk factor to it, but you shouldn’t just add entire mortgage payment and compare to renting. Also, you then have to add in the risk of rent rising, etc. Obviously the entire calculation is much more complicated than either of us are showing. However, you used a simplistic example, and so did I. Apples to apples.
ps, if they are more pessimistic, they probably shouldn’t buy at all.