Update on The Regatta: A Sale and Rentals at 420 E. Waterside
We last chattered about The Regatta, at 420 E. Waterside, in Lakeshore East in March 2008. At the time, a 2-bedroom unit had been reduced $75,000.
Apparently, the reduction worked because that unit, #1108, was one of the few that have sold in the building this year.
Unit #1108: 2 bedrooms, 2.5 baths, 1500 square feet
- Sold in October 2006 for $547,763
- Originally listed for $765,000
- Was listed in March 2008 for $689,000 (extra for tandem parking)
- Sold in May 2008 for $665,000 (anyone know if that included the parking?)
- Assessments of $561 a month
- Taxes are “new”
Some units that were originally rented out are now coming back on the market for sale (and, for rent again.)
Here’s the listing for Unit #1803:
TENANTS IN UNIT 5/1/08-10/31/08. STILL AVAILABLE FOR SALE TO INVESTORS, SHOWING AFTER 9/1. MOVE IN ON NOV 1, ’08. SOUTH- FACING BALCONY OFF LR W VIEW OF LAKE MASTR BR FACES SOUTH.
SW VIEWS FROM LR, DR & 2ND BR IS OF RIVER & CITY. 1-YR-OLD UNIT W HARDWD FLOORING & CHERRY KITCHEN W S/S APPLS. IN-UNIT LAUNDRY, 24-HR DOORMAN, INDR POOL, FITNESS RM, MUCH MORE! TWO(2) TANDEM PKG FOR ADDT’L $55K ONLY.
Re/Max at Home has the listing. See more pictures here.
Unit #1803: 2 bedrooms, 2 baths, no square footage given (but probably around 1180)
- Sold in December 2006 for $481,000
- Currently listed for $527,700 (parking is $55,000 extra)
- Assessments of $329 a month
- Taxes are “new”
- Also available for rent for $2600 a month
One of the lower level one bedroom units has also come back on the market.
Here’s the listing for Unit #404:
PERFECT LOCATION FOR THIS BEAUTIFUL CONDO IN EXCELLENT CONDITION WITH HARDWOOD FLOORS THROUGHOUT. OVER 10K IN ADDITIONAL UPGRADES.
BUILDING OFFERS INDOOR POOL,SUNDECK, PARTY ROOM AND GYM.PARKING ADDITIONAL FOR 45K.
Ten Ten Realty Inc. has the listing. See more pictures here.
Unit #404: 1 bedroom, 1 bath, no square footage given
- Sold in September 2006 for $274,500
- Currently listed for $305,900 (plus $45k for parking)
- Assessments of $247 a month
- Taxes are “new”
- Bedroom is 11 x 10
- Living room is 20 x 12
There are currently 7 rentals available on the realtor sites (more probably on Craigslist and other locations.)
i’m too lazy to look at comps, but these units seem awfully generic for that kind of money.
IMHO, the kitchen looks dated already.
I paid hundreds of thousands of dollars for an overpriced condo and put an old CRT television in it!
Maybe the CRT TV is because the owner is upside down on their mortgage and can’t finance the nice flat screen with the HELOC they needed– All because they OVERPAID! What’s with these prices…seriously.. $305,900 +45K for parking for a low floor unit???!?! This sniffs of “The Sterling” (Though I’ll admit, they look a lot nicer).
If I didn’t hate cherry cabinets and overmount sinks, I’d be very tempted to rent the $2600/month place. I assume that rental price doesn’t give you access to the parking, but who knows. Either way, it’s a much better deal than paying over 500K.
Danny’s right, with a roommate this place would be a pretty cheap (and nice) apartment in a good area.
Unit 1803 proves once again that in the short run (5 years or less) it’s cheaper to rent than to buy.
Gary – Cherrypick your data and you can prove whatever you like…
Steve,
Had to see if you were still checking out this blog 🙂 Actually, every time I do the analysis renting comes out better.
SH, then “cherrypick” one for us that disproves what Gary said, “in the short run (5 years or less) it’s cheaper to rent than to buy.”
Crickets chirping….
G,
You can’t just make a generalization that something is cheaper to rent or buy – it all depends on the buyers/renters personal financial situation. I am looking to buy a unit such as this, but there would be no way I would rent it.
No need to cherry pick data, lets look at the 2 bedroom unit above listed at $2600 (which is a bit low compared to some other rental units in the area). I recently sold my condo which sold for 110k over the price I bought it for 5 years ago. On a unit like this I would be putting in something like a 60-65% down payment, which would make my mortgage, assessments, and taxes still around 2k. Even if I invest that down payment while I am renting for the next 5 years, I am still better off because my taxes are a write off and I avoid paying income tax on the 110k I made on the previous place. This also assumes that I sell it for the same that I bought it for.
The point is that not everyones situation is the same, what might be better for you doesn’t apply to everyone else.
JN,
Good point. I would argue if you are putting down 60-65% of your residence then that is a huge waste of opportunity cost of your net worth. You lose the tax benefit and most everything else immediately of owning this much equity in this unit.
Why tie up such a large percentage of your net worth in a low yielding (
JN,
Good point. I would argue if you are putting down 60-65% of your residence then that is a huge waste of opportunity cost of your net worth. You lose the tax benefit and most everything else immediately of owning this much equity in this unit.
Why tie up such a large percentage of your net worth in a low yielding (under 4%) asset? Unless you’re expecting future appreciation rates above inflation. Maybe rolling gains into it to reduce the tax burden on your recent RE gain?
Much of it does depend on tax brackets and gains, but generally what are non-optimal investments for middle/upper middle class are even worse investments for more wealthy (less tax breaks).
JN,
Click on “last chattered” at the top of the post and check the comments for details on rental rates in this bldg.
Why are your gains taxable from your sale? I take it you occupied the unit (why else the rent/own comparison.)
Even if your tax concerns are valid, the typical buyer would not price that in, so why would you?
You were given a gift on your last place. Don’t let me dissuade you from squandering it in this bldg.
There are two reasons for such significant gains such as JN’s $110K profit: 1) Extraordinary appreciation in the last few years that not only won’t repeat but is also being reversed and 2) Leverage, which cuts both ways. In the early 90s I lost twice my down payment on a house in New Jersey.
Hey, I’m in the business so I love buyers. I just don’t want them to have unrealistic expectations. If you are looking at a place as a place to live in (and not an investment) for a while then by all means buy.
Maybe it’s just me but I don’t see anything wrong with having a 65% downpayment. Every dollar towards the downpayment is one less dollar to pay interst on at 6.0%. Sure there are some tax benefits with a larger mortgage but I cannot say that in every situation it would be better to invest the money.
Along the same lines, I’ve been trying to convince my SO that paying extra towards the principal on my federal student loans is not in my best interest because the rate is so low: 2.5%. Instead I could save the money and put it in the bank and earn 3.0% or 4.0%. Then I can use the money towards the downpayment on a house. It makes no sense to pay off the 2.5% long term debt to just turn around and take out a mortgage for the same amount at 6.0%. I told her that if I’m going to take on debt, I’d rather have, for example, $100,000 in SL debt at 2.5% than $100,000 of mortgage debt at 6.0%. I’ve haven’t done extensive tax calcuations but it seems to make sense to me.
I’ve not seen recent comments about the Regatta at 420 Waterside, here or elsewhere. For someone looking to BUY a second home to use for 5-10 years, is it a safe, stable, place to purchase ? I believe I saw on a Listing somewhere that there’s an Annual Assessment over and above the condos normal monthly assessment ? Something like $1,230 or so ? Is this so ? How are sales, pricing, etc. within the building compared to others? Alot of rentals ? What else may I want to know that may affect my decision to purchase there or not ? Any area alternative that may be better a BUY ? Updates, comments, suggestions appreciated ! Thank you