But who would pay a million to live in a crime zone? — Brooklynian

But who would pay a million to live in a crime zone?

So we started looking for a house in Bed Stuy about a year ago. We had to compromise on having tons of restaurants and safety to be able to buy a multifamily that would be able to somehow help us with our mortgage. Now a year later we cant even afford a condo in this area. What happened? Did Bed Stuy all of the sudden became a safe paradise where everybody wants to move in? There are a bunch of investors that take people out of their houses and buy them for dirt cheap, renovate the places to make them look decent and sell them with at least 500% profit. And the problem is that they all do the same, price them the same, renovate them the same crabby way, so there is no chance for the average people who work day and night to buy a place in a decent price.

I am still wondering what happen, and who are these crazies who are gonna spend a million dollars to live on a street that had three crime incidents in one month and next to a vibrant project building??!! Cant afford New York anymore, time to get going.

Comments

  • Even real estate agents are amazed by how much people are paying.

    This site discusses how prices have been soaring, and people should buy quickly: http://bktothefullest.blogspot.com/?m=1

  • Ninja said:

    I am still wondering what happen, and who are these crazies who are gonna spend a million dollars to live on a street that had three crime incidents in one month and next to a vibrant project building??!!

    The people who have been priced out places like BoCoCa and Williamsburg and even the far reaches of Park Slope.

    Cant afford New York anymore, time to get going.

    Maybe if everyone else left, housing prices might go down. Ah, not likely. [-(

  • Read an article yesterday that stated housing prices in Brooklyn will probably jump about 6% this year while in other parts of the city only about 1%. With low mortgage rates people are sucking up properties quickly.

  • This short article was published today and explains why renters are paying so much in "undesirable" areas:

    http://www.dnainfo.com/new-york/20130510/crown-heights/bigger-spaces-smaller-rents-lure-new-faces-eastward-crown-heights

    Owners respond to the same pressures.

    ...and both groups seem to believe that NYC neighborhoods will only continue to improve over the course of their "stay".

    I hope they are correct.

  • Some of it is probably the Hassids branching out from Williamsburg. Groups in their community pool their resources and purchase several places all at once and renovated them the same way. We had two homes and a tenement building purchased on our street by them and renovated by the same company so they all look alike and terribly designed btw.

  • "But who would pay a million to live in a crime zone?" - Seems like you were willing to live there for half a million.

  • I just hope people are not spending more than they can afford.

    ...I would hate for them end up with something they can't afford in the event that they lose their job and/or the market tanks in the near future.

  • "Seems like you were willing to live there for half a million", Exactly my point.!I would only live there because its cheaper. If I could afford a million I could live in Boerum Hills and not have to walk around with with pepper spray or be home before sunset. Thank you for helping me emphasize my point.

  • Ninja-

    For some people, paying a million is easier than you paying half a million.

    ...hence, they may be willing (and able) to pay a million to live in a crime filled neighborhood that you would not.

    Increasingly, they are finding that they can't pay a million and live somewhat close to the city without living in the less than desirable neighborhoods.

    ...as more and more of such people move in, the neighborhoods tend to become more desirable for a myriad of reasons.

  • "If I could afford a million I could live in Boerum Hills and not have to walk around with with pepper spray or be home before sunset."

    It would be ok if its just you...but if you have a family and kids, I am sure you would not want them subjected to a crime zone. Personally, I would buy a smaller place that was in a safer area....but if your a single guy, its a different story

  • Whynot_31, my point is that the prices in Bed Stuy have almost reached the prices in the "best" areas in Brooklyn and Queens which are also very close to Manhattan and they offer much more amenities and safety. A very simple example is Sunnyside, Queens where I am currently looking into. Its a hidden gem, 13 minutes from midtown Manhattan and a stone's throw from greenpoint, willy B and LIC. VEry safe area, super green and full of amenities. A million there would buy you a beautiful two family on a tree lined street. So why would someone want to pay the same amount to get an equal space in an area which is filled with crime? And yes I do understand that Bed Stuy is becoming better for the last ten years but it sure has a long way to go to be consider a safe area. My assumption is that as mentioned above in other posts, some investors are buying the houses, price them very high and due to the lack of housing stock people have no choice but to buy. I feel though that this is a balloon that is going to get deflated and come crushing down. Anyway I would rather live in a safer area if I have to pay the same amount for housing, but that's just me.

  • Lots of "pretty wealthy" people seem willing to give up things (like safety and proximity to Manhattan) in order to get a brownstone. ...especially people with families.

    http://www.brownstoner.com/blog/2013/05/the-brooklyn-real-estate-market-summed-up-in-one-flier/#disqus_thread

    Needless to say, lots of people are not.

    At this very moment, cranes and laborers are toiling in places like LIC, to give people glass-walled condos, in a safe neighborhood, close to Manhattan.

    We recently discussed it here:

    http://brooklynian.com/forum/the-lounge-random-stuff/sunset-park-vs-the-area-west-of-lic-between-hunterspoint-ave-and-green-point-ave

    Prices for a 1000 sq ft condo in LIC are running about $800k.

  • "I feel though that this is a balloon that is going to get deflated and come crushing down. Anyway I would rather live in a safer area if I have to pay the same amount for housing, but that's just me."

    Agreed.

    The only thing that would prevent the "balloon" from deflating is if Brooklyn continues to grow in population as it has in the past few years.

  • "I feel though that this is a balloon that is going to get deflated and come crushing down. Anyway I would rather live in a safer area if I have to pay the same amount for housing, but that's just me."

    Agreed.

    The only thing that would prevent the "balloon" from deflating is if Brooklyn continues to grow in population as it has in the past few years.

  • Large swaths of Manhattan are losing population, yet the prices are soaring.

    The answer is in part due to people who have second homes there.

    ...they are partly responsible for people being unable to afford in Manhattan moving to the less desirable neighborhoods in Brooklyn and (gasp) The Bronx.

  • P.S. We are certainly not the only ones who are concerned about there being a bubble:

    http://www.businessweek.com/news/2013-05-16/brooklyn-to-california-bubble-threat-grows-in-rebound-mortgages

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