The New York City real estate market has gotten so bad that people are paying millions to live in the basement - Finance

The New York City real estate market has gotten so bad that people are paying millions to live in the basement – Finance

  • Real estate in New York so outrageous that home buyers pay millions for underground apartments, according to New York Times article.
  • In rooms below the level, more space is offered for a small fraction of the cost of other units in their buildings.
  • The pilot program is in the work of creating legal basements and basements in Brooklyn – if successful, this will ideally bring more affordable housing.

New York Real estate can now be buyer's market in all price points, but this does not mean that it becomes less outrageous.

The property market in New York has become so expensive that many buyers refuse apartments in the sky for dungeons underground, according to a recent Article in the New York Times,

"As prices continue to decline in the luxury market, developers are trying to maximize every square foot, including space below the level, while buyers are looking for profitable deals on the market with a redundant supply, "wrote reporter Stefanos Chen.

Underground apartments are becoming so popular that the pilot program is working to create a legal basement and basement apartments in East New York, Brooklyn, Chen said, adding that, although some basement apartments are legal, there are no basements in the basement apartments.

The City Council of Slope City Brad Lander told Chen that probably more than 300,000 residents are in illegal basements and basements in the city. If the program is successful, the junior class units, ideally, will help bring the city more affordable housing.

For buyers, these spaces below the class offer more space for about one quarter of the cost per square foot than other units in the same building, Chen reports, referring to StreetEasy data. But they often still cost millions.

One couple who spoke with the Times spent 1.2 million dollars in 2015 on a 1,800-square-foot duplex studio at street level in Midtown East. It was the only space the size of their budget was below 135th Street, and they were still doing repairs for the year to bring more light.

Another buyer said that she bought an underground duplex with an area of ​​2,100 square feet on the upper West Side for $ 2.3 million – twice her place in Williamsburg, Brooklyn. She told The Times that the smaller apartment above it was listed for about $ 1 million.

The living underground has several limitations

In rooms below the level there are limitations: bedrooms are not allowed in a completely unfinished space, and because of the rules of the water pipe it is allowed to use only the bathrooms (read: without showers), according to the Times. Developers can use the basement as a "rest room" for buyers on the ground floor or place full apartments below street level, creating higher ceilings and full-length windows to increase the attractiveness of the space.

"Since low-income homes tend to be cheaper than space above the class, buyers can stretch their dollars with some restrictions, while developers make the most of their investments," Chen writes.

Despite these restrictions, it is difficult to find a place in the city – especially when it is profitable.

Several developers told Chen that these deals are sold quickly, often being the first sale in the building. Consider a studio on the ground floor of an area of ​​1,289 square feet in Shepard in a western village: about half the space below street level (and therefore not legally bedroom), it was one of the first units. At 1.785 million dollars, it was much lower than the average selling price of StreetEasy in the building was $ 9.1 million, Chen writes.

Likewise, a 450-square-foot underground block in Chatsworth on the Upper West Side has been sold for about half a million with 70 potential buyers. The agent associated with the transaction told the Times that the buyer who plans to eventually transfer the unit as a rental payment would not be able to get into the building otherwise.

Read the entire article "The New York Times" »

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