rental prices dropping?

Is there any evidence of properties going down in price significantly? I am looking for a place now, and at least in the Jweish Hospital complex prices are def. on the up and up w/no decline in sight.

I spoke to my tenant recently about possibly raising the rent because of enormous heat and water bills. We came up with a plan that they would use their electric heater more and I would only need to put the heat on when its really cold out and so there was no need for an increase. Also I don't charge them a lot of rent because I don't want to be a hands on landlord, i.e., painting, I will purchase paint but you will paint yourselves, they are responsible for putting your own garbage out, etc.

Maybe you can talk to your future/possible landlord and work something out along similar lines? I think its easier to do when you rent in a 2 family home as opposed to a multi-family dwelling or apartment building.

I don't see any real decline in 1 bedroom apartments for sale. Price might be down a bit if you're buying a brownstone.

unfortunately I don't find rents in the area's you mentioned going down. Simply because of the demand for those area's. It might not be the case in other area's of Brooklyn, but PS/PH have shown reziliance in the rental market. Additiionaly, the cost of monthly maintanace has gone up for the landlords. Heating, water and sewer, and taxes all have gone up a great deal.
The cost to buy however, did go down. I believe it went down around 10%.

Rental prices in PH have gone way up the past couple of years and I don't think they're going to soften. There's an inverse relationship between buying and rental prices.....it's harder to buy now, so there's more demand than ever for rentals.

rents are only dropping if they're at the high end of the spectrum. $1800, I found, was too high to rent a 1 br, but $1600 is fine. too bad for me: now I'm selling. sale prices haven't dropped, even if you need to put between 35-50% down to acquire a mortgage these days. this is a high-demand area with very little inventory.

Bricktop wrote: Rental prices in PH have gone way up the past couple of years and I don't think they're going to soften. There's an inverse relationship between buying and rental prices.....it's harder to buy now, so there's more demand than ever for rentals.

Prices for rentals are going down, smiple because the houses that aren't being sold are now being rented. This put alot more space for rent on the market.

meganlibrarian wrote: I sure as hell hope that rental prices drop - I need to find a new place by Feb 1st, and I need a 2BR for $1800 or lower. Ha. Ha. Ha. Whee.

good luck!

worldwide trader wrote: [quote=meganlibrarian]I sure as hell hope that rental prices drop - I need to find a new place by Feb 1st, and I need a 2BR for $1800 or lower. Ha. Ha. Ha. Whee.

Bayridge, has 3 bedrooms for that price and a driveway.

I also need to be on the 2/3/B/G for my daughter's daycare, which puts a crimp on things a bit.

I really dont think anything is looking good for nyc real estate. The huge price increase over the last five years was caused by a number of factors all of which have just shit the bed. So yeah 1800 2br in PH might happen.

There is a big gap between rents and home values. It used to be that a building would sell for 10 times the rent roll (if the building GROSSED 100k per year in rent then it would sell for 1 million).

As property values shot up this gap between rent roll and asking price grew by a large margin. About 5 years ago they stopped selling based on rent roll all together. You would see a building sell for 2 million even though it generated only 80k per year in rent.

Because of this huge gap something has to happen. Either rents will go up or house values will go down. tortuga is right in suspecting that rents will go down, however things have not turned out that way(so far). Rents seem to stay the same as home values go down.

It never makes sense to pay a 5k/month mortgage if you can rent the place for 2k. In this market I would much rather rent then own.

you get around

oh and found this. not in PH but on 14th and 4th ave. not the greatest area but looks decent. 1800 2 bed which says its 1000 sqf.

http://newyork.craigslist.org/brk/fee/917699053.html

edit....

http://newyork.craigslist.org/brk/fee/917237690.html

$1800 2 bed on St. Marks and Underhill. There must be something wrong with it but who cares thats pretty cheap.

jesus im going to move...

http://newyork.craigslist.org/brk/abo/917730300.html

I'd be concerned and a little surprised if rents fall much, because carrying costs are up despite temporary relief in the form of asset deflation and a short-term rally in the $US. If rents fall, prices must fall that much further to bring the cost of renting more in line with the cost of buying, especially in a market where credit is extremely scarce. Or to put it another way, if rents are falling, deflation is widespread and you probably have a bigger problem, like you are at substantially increased risk of losing part or all of the source of income you use to pay the rent, such as your job. And you are at greater risk of moving in somewhere for less rent only to find it has been foreclosed soon after and you're out on the street. So be careful what you wish for, renters.

^^ however losing your job and dealing with a landlord is much easier than losing your job and dealing with the bank.

doctorj wrote: [quote=Santa]^^ however losing your job and dealing with a landlord is much easier than losing your job and dealing with the bank.

You owe the landlord a few dollars, you've got a problem. You owe the bank a million, the bank has a problem.

I owe the bank a buck fifty ... k. will they be forgiving if my broker fails me?

oh

missed my flight. lupita ran for her tiny life and caused a 40 minute chase around the apt. oh yes. cat is now trapped in the bathroom. silly girl.