Trying To Sell For 2 1/2 Years in Southport: 1446 W. Henderson
This 2-bedroom unit at 1446 W. Henderson in Southport has been on and off the market since July 2008.
In that time, it has been reduced $114,900.
It is now listed $32,000 under the 2005 purchase price.
Located in a 3-unit building constructed in 1995, it is just a few blocks from the Southport restaurants/shops/bars as well as the Southport brown line stop.
The listing says it has a new kitchen with granite counter tops and stainless steel appliances.
It has central air, washer/dryer in the unit and deeded parking included.
What will it take to finally sell this unit?
Ashley Carter at Koenig Strey Real Living has the listing. See the pictures here.
Unit #2: 2 bedrooms, 2 baths, no square footage listed
- Sold in October 1995 for $285,000
- Sold in July 1998 for $280,000
- Sold in April 2001 for $347,000
- Sold in June 2005 for $407,000
- Originally listed in July 2008 for $489,900
- Reduced numerous times
- Currently listed for $375,000
- Assessments of $90 a month
- Taxes of $5479
- Bedroom #1: 14×18
- Bedroom #2: 12×10
at rental parity – good deal for someone who will be here for more than 4 years.
ugh. too many criticisms to list.
Asking price is 180 bips/yr over the as-new price, and that’s *with* a new kitchen.
ugh.
do you think if it was a top floor unit it would have sold already?
anon- you put way to much emphasis and weight on your “numbers” and idiotic bips/yr calculations. Do you think that 99.9999999999999999% of buyers give a shit about that? Do you think that it is important at all when someone is looking at buying a place? Most people will look at their budget, look at their lifestyle, look at the unit, and then look at alternatives. For someone that is going to be living in this area for even 4 years, this is a very good buy (regardless of the bips/yr bullshit analysis) or how much the person owes on the property, etc.
“Do you think that 99.9999999999999999% of buyers give a shit about that? Do you think that it is important at all when someone is looking at buying a place?”
Obviously you didn’t and that’s why you’re losing your ass on your multiple real estate investments.
Priced too high. Kitchen and bathrooms look really cheap
Worth 399
Haha, I totally misread the post!
I thought it was listed at 489K
lol clio do you even know the definition of “rental parity”? you’ve been spouting it out like a parrot lately
The trend is continuing unabated on units like these. Buy now and be priced in forever.
sonies – do the math – all costs come to less than 1500/month for this place. You can’t rent a similar place w/ parking in this area for the same amount. I have been using this term because so much on the market is at or below rental parity.
“sonies – do the math – all costs come to less than 1500/month for this place.”
LOL WUT? I think you need to check your math again
“sonies – do the math – all costs come to less than 1500/month for this place. ”
who’s math?
by math he means the psychological benefit of owning
Cool fun place in great location, just too much.
Clio did you say do the math or the meth?
sonies: ok let me break it down for you.
375 purchase price w/75k down (or 350k purchase w/ 50k down) or 325k purchase w/ 25k down) –
Loan = 300k @ 5% = 15k/yr
taxes = 5.5k
assm = 1.2 k
minus mortgage/real estate tax deduction (5k for someone in 25k bracket)
so total yearly cost is 16700 – divide by 12 and you get 1391.66
Now do you get it?!!
About $2100/mo. out of pocket, however if you factor in principal payments and tax advantage you could be around $1500.
maybe he meant 2500 a month
“LOL WUT? I think you need to check your math again”
3.05 is too low, but, assuming a 28% bracket and (incorrectly) all of the interest and taxes are incremental, additional deductibles, 4.32 is plausible, especially if you assign a lower op cost to the DP, making that 4.32 a blended rate.
thats realtard math clio because you aren’t factoring in the opportunity cost of the down payment (which you could easily get 4-5% on a nearly risk free asset) as well as the tax deduction is crap as well because you aren’t factoring in that without that they can still take the standard deduction so its marginal savings at most. Not to mention the risk of paying for any repairs, special assessments, tax hikes, hvac guys, utilities blah blah blah
I’m with CLIO on that one. And according to David, this place is a STEAL at $375,000.00.
oh and all that is assuming that housing prices have stabilized… which they may have, but i’m going to say that they have not stabilized enough to where you can count on this being rental parity at all unless you plan on living here for 10-15 years
“cost of the down payment (which you could easily get 4-5% on a nearly risk free asset)”
Really? Show me a investment where I can reap a guaranteed 5% return and I will give you 500k cash right now. yeah – I thought so………
Great location, nice, if not slightly above average unit. I wonder if they have rejected any offers. 325-250k sounds doable for someone who WANTS to live in the area. Are they chasing the market down and wishing for old offers?
whats your time frame clio and is government guaranteed good enough for you? where should I send the new account paperwork to?
actually sorry clio I lied
1.85 year monthly pay with a 4.66% YTAL
not bad though
He said nearly risk free which would incude tax free muni bonds and high grade corporate bonds. There are plenty of these to choose from.
I guess it depends on what you are going to include as expenses when you define rental parity.
“Great location, nice, if not slightly above average unit. I wonder if they have rejected any offers. 325-250k sounds doable for someone who WANTS to live in the area. Are they chasing the market down and wishing for old offers?”
Maybe the #1 and #3 owners are ash-holes? Assessments seem too cheap, which goes to that point from a different angle.
Also, 187 2/2s in LV for under $400k on the market today; 249 sold in the last 12 months, so a lot of competition out there–this could easily be a lot of peoples 2d choice.
“as well as the tax deduction is crap as well because you aren’t factoring in that without that they can still take the standard deduction so its marginal savings at most. Not to mention the risk of paying for any repairs, special assessments, tax hikes, hvac guys, utilities blah blah blah”
I would think it isn’t a big % of buyers of these 2/2 boxes that are itemizing before purchase. The shills never mention that about the “tax deduction.” You left out renovation costs if the pergraniteel is held for more than the years it will remain in style.
A 30 year mortgage may outlive the cinder block used on the McCondo.
“I guess it depends on what you are going to include as expenses when you define rental parity.”
Not speaking as an investor, but as a homeowner I consider my out-of-pocket minus principal payments and tax deduction (amount over the standard deduction x my marginal rate). Yes there are risks — e.g., repair costs, or decline in value. There’s also the potential for appreciation. But as a renter I also am risking rent hikes and have no upside potential. It’s really a decision of whether what the place is and what I can do with it is worth the outlay to me. If it’s your home, the financial factors are important, but they’re not everything.
EJ = wise man/woman
I actually like this spot, and the price doesn’t offend me. I would pay $325K for this joint, which means there is probably someone out there who is willing to pay closer to ask.
“If it’s your home, the financial factors are important, but they’re not everything.”
Has anyone ever denied this here? I, for one, acknowledge that it is always a great time to buy if financial factors are not a concern, especially today.
” I, for one, acknowledge that it is always a great time to buy if financial factors are not a concern, especially today.”
Huh? G, are you drunk? You are constantly stating that prices are going to decline and are constantly calling people who buy now “knife-catchers”. You can’t change teams/rules in the middle of play……
“tax free muni bonds”
Ha. Not worth the paper they are printed on.
I, for one, acknowledge that it is always a great time to buy if financial factors are not a concern, especially today.
“Huh? G, are you drunk? You are constantly stating that prices are going to decline and are constantly calling people who buy now “knife-catchers”. You can’t change teams/rules in the middle of play……”
clio, I am beginning to believe you are not as bright as you claim. Try to follow along: if financial factors are not a concern, then they do not matter if you buy in a declining market. This does make you a knife catcher, a term that is of no concern to someone who does not care about financial factors. Got it?
“You can’t change teams/rules in the middle of play……”
clio, you will need to drive many miles in the lambo in order to match the smiles and laughter that this line induced in many, no doubt.
G-
First of all, I never claimed to be bright. That is your interpretation based on my schooling (u. of c, harvard, stanford), my degrees(which I never personally disclosed but someone outed me) as well as my 15 year history of buying, renovating, and selling scores of houses in boston, sf and chicago.
Second of all, you cannot backtrack and say that it is a good time to buy for some but a bad time to buy for others. Which is it? and none of this mumbo jumbo about if you can afford it, it is a good time and if you can’t afford it, it is a bad time. That is obvious. Come on, dude, step up to the plate and give one opinion or another. I am tired of these gymnastics and your flip flopping
“Second of all, you cannot backtrack and say that it is a good time to buy for some but a bad time to buy for others. Which is it?”
I stand by my statement: I, for one, acknowledge that it is always a great time to buy if financial factors are not a concern, especially today.
“I am tired of these gymnastics and your flip flopping”
Many, many, many miles.
Funniest thing I’ve read in awhile-and SO true…
TB:
“A 30 year mortgage may outlive the cinder block used on the McCondo.
Bland middle floor unit in a cinder box building. Very uninspiring layout, finishes, etc.
Things I’d want to to this place:
1. Close off kitchen.
2. Fill in those mingy little side windows except for the one over the kitchen sink. The great room would look much better without them.
why would anyone pay 375K for this unit compared to the foreclosure at 3014 Sheffield for 270K mentioned last week? Sheffield is same type of unit 3-flat new construction but a 100K cheaper.
Can someone explain to me the animosity in using cinder-blocks for construction versus other materials?
I know that there has been some shoddy building practices by contractors in the bubble era, and that construction defects aren’t all that uncommon any more. But are these defect attributable to the use of cinder-blocks in the construction of these newer construction condo buildings?
I have a friend who rents in a newer (2-3 years old) condo building, and he’s had trouble with leaking around the windows, which is getting into the insulation, etc. and causing problems. Is this something common with cinder block construction or more a result of bad vapor barriers/windows?
“Can someone explain to me the animosity in using cinder-blocks for construction versus other materials?”
My frat house used cinder blocks in it’s construction. It was built in the 1950s and quite dated. But the rent in the summer was only a paltry $150/month. During the school year not much more.
Idiots who bought a McCrapBox cinder block construction during the bubble for 300k+ were just that: idiots. Cinder blocks aren’t good insulators either of heat.
Not all construction materials were created equal and woe be to those who didn’t understand this during the bubble.
nice area and the place looks pretty nice inside,but i dont trust the build quality of those cinder block buildings.
“Is this something common with cinder block construction or more a result of bad vapor barriers/windows?”
Either is possible.
“But are these defect attributable to the use of cinder-blocks in the construction of these newer construction condo buildings? ”
Attributable to the blocks themselves? probably not. Attributable to common shoddy/poor installation and maintenance of the blocks, which would be less of an issue with a different material? At least a genuine risk.
“Cinder blocks aren’t good insulators either of heat.”
What uninsulated exterior wall material is, Bob? I can wait for you to do some research if you like.
it’s not so much the cinder block,but the split faced cinder block that was all the rage during the boom,because it makes the place look like a greystone at 1/10th the cost.lots of problems because of improper installation,and poor checking(ahem,bribes) by city building inspectors.a couple alderpersons are trying to ban the stuff.google it or look at the citydata forum.this could be a huge problem in years to come.try this link.
http://abclocal.go.com/wls/story?section=news/special_segments&id=7804934
I don’t get all this talk about investment all the time. Some people buy a house because they find it a necessity. Of course they can rent, but many people rather own than rent for various reasons. So while many of you have a point that this might bot be an optimal investment, I think we should also consider the value of a property to a buyer who wants it as his residence.
“So while many of you have a point that this might bot be an optimal investment, I think we should also consider the value of a property to a buyer who wants it as his residence.”
I slip into it when the unit being discussed has reasonably-equivalent rental alternatives in about the same neighborhood. 2/2s in SoPo are still fairly widely available. They, in general, are not likely to be as nice as this one, but they are the most likely alternative. And, unless your life situation and plan is such that you have reasonable confidence of at least 5 years (I’ve always thought at least 7, really, and 10 is even better) in Chicago, in a 2/2, then it’s a pretty big risk.
You know what would be scary to me as a renter? Not knowing whether my landlord is paying his mortgage or just pocketing my rent – awaiting repossession. I guess the only way to avoid this would be to rent in large apartment buildings – but these types of units 2/2 walk ups will be out of the question.
miumiu: “So while many of you have a point that this might bot be an optimal investment, I think we should also consider the value of a property to a buyer who wants it as his residence.”
I think that is a very fair and valid point. I think there is an unquantifiable emotional element to the decision making process for most people, myself included. So there you go…clio et al. have been vindicated. 🙂
But when moving forward with the decision making process, I try to pull some of that emotion out of the equation. At the very least, someone making the decision to buy should be asking themselves what premium for ownership is worth it for them. If I’m paying $500 per month more to own than to rent a comparable place, is it worth it to me? $1000? $2000? What are the pros and cons of the decision?
The thing that really seems to get people riled up around here is the idea that this logic should be put aside and a potential buyer should just go for it. Consequences be damned, just put your money down and you’ll be fine! Not only is that dangerous advice, but it has been conclusively proven wrong by the recent RE downturn. Many, many people didn’t come out of this downturn fine and many of those folks are in the situation they are in because of emotional, uncritical decision making. “All my friends are buying, and RE prices never go down! Of COURSE I can afford it.”
The RE cheerleaders are saying that average homebuyers will continue to make emotionally-based, irrational decisions, continuing to hold up RE prices. I sincerely hope that at least a portion of those folks learned a thing or two from the bloodbath happening all over the country. I could be wrong, but I can say that I learned something.
Think. And don’t let your emotions get the best of you. They are an undeniable factor, but should never be the overriding force in your decision making process.
Very nicely put together TftInChi. I think definitely there is a certain bios (potentially irrational) towards ownership in my husband and I, partly because we come from countries that housing constantly became more and more expensive and also there was some stigma attached to being a renter.
Unless the block is well sealed, and it needs to be sealed every few years, water comes through as though its a screen. I never would have believed the amount of water that soaks through, but my block garage proved it to me. Sealing is expensive and I found there’s alot of variance in the quality of sealants.
What is the purpose of buying a place if you intend on selling it in 3 years?
clio: “Do you think that 99.9999999999999999% of buyers give a shit about that?”
We know at least one person – anon – cares about this. Given that there are just under 7 billion people on the planet, you have six 9s too many.
wrong danny – anon is NOT a buyer!!! Which was my point in the first place – only people who are armchair investors/homeowners look at that crap – the vast majority of people actually looking to buy are not analyzing bips/C-S, etc. because people buy homes to improve their life/lifestyle – not to improve their financial portfolio.
Is it just me, or does the building’s entryway look freakishly narrow?
Clio, well if you were an extra savy renter you could check with ccrd the status on the unit. haha probably something most folks wouldn’t do but i think alot of us real estate junkies might just out of curiosity to figure out the landlords financial situation.
AND if i saw that unit had a foreclosure filed i would totally try to get the rent knocked down… not that i necessarily could, cause the landlord could just find a normal person who wouldn’t look into that kinda stuff.
Really? Show me a investment where I can reap a guaranteed 5% return and I will give you 500k cash right now. yeah – I thought so………
EXC = comed pays 5% dividend
“We know at least one person – anon – cares about this. Given that there are just under 7 billion people on the planet, you have six 9s too many.”
Innumeracy strikes again.
Laura said:
#”2. Fill in those mingy little side windows except for the one over the kitchen sink. The great room would look much better without them.”
totally in agreement.
Those little windows in the bedroom are laughable. They look cheap, they don’t really serve any purpose aesthetically, and are of questionable functional use. Ugh. Just Ugh.
“Those little windows in the bedroom are laughable. They look cheap, they don’t really serve any purpose aesthetically, and are of questionable functional use. Ugh. Just Ugh.”
In the 2d BR, they are the only windows.
#”In the 2d BR, they are the only windows.”
well, they were a lousy choice of window. The size, the placement, I don’t understand why they chose tiny little double-hungs all along that side of the building. I might have installed clerestory windows; you get the benefit of light and ventilation, and they look clean and modern, and you don’t have to worry about the view, because they’re up higher. If they’re awning style, you can get nice air flow. All I think of when I see them is every really crappy frame house where somebody needed a new window, but were too cheap to buy a window to size, so they bought some tiny little vinyl double-hung, and then closed the rest of the window opening up. Usually with non-matching siding.