bostonbubble.com

Barry · Guest

So i was reading on boston.com, link below, about the auction at Nouvelle Natick over the weekend... 2 things suprised me:
1. Condo fees are based on $.61 per Square Foot
2. Tax rates (which are 12.65 per 1000 in natick) are based on previous assessed prices.

lets say they bought for 250k= 20% down, 200k mortgage 1200 per month
taxes: based on lowest price of 480,000= ~550 per month

Say that the smallest is about 1000 sq ft 1 bedroom.. ~$600--

you need to rent a 1 bedroom for over 2300 per month to break even-- and that is assuming that someone would consider this a nice alternative to Boston-- or newton-- or brookline-- or cambridge-

What is anyone's thoughts on this.

The orignal sales price on these propoerties were: $479,900 to $1.7 million

http://www.boston.com/yourtown/natick/articles/2009/10/05/55_condos_at_natick_mall_sold_at_auction/?p1=Well_MostPop_Emailed4

GenXer · Joined: 20 Feb 2009 Posts: 703

There is still plenty of debt to go around. And plenty of people who can't do math.

admin · Posted: Mon Oct 05, 2009 2:50 pm GMT Post subject:

Here's the Herald article on the same:

http://www.bostonherald.com/business/real_estate/view.bg?articleid=1202246

- admin

Barry · Guest

sorry forgot to mention a father and son real estate investor bought 2 units and said they would be instantly cash flow positive--

john p · Joined: 10 Mar 2006 Posts: 1820

That condo fee being .61 per square foot, is that per month or per year?

.61 times 1,000 square feet is $610; that can't be per month can it?

so taxes are what around $450 per month for the 1,000 s.f.?

The mortgage for just the Principal and Interest for a $400k is around $2,200 using 5.25% right?

My napkin calcs add out to around $3,400 for a monthly nut including condo fee, taxes, insurance and P&I.

I agree this isn't cash flow positive because I don't see someone renting a 1 Bed for that.

The only thing I could offer would be running the same numbers assuming that the investors paid cash?

It sounds like one of those time-share scams in Florida where people get you with the "maintenance charges or association fees". The developer most likely is sinking in his teeth and sucking out like $610 a month, what does he care?

Interesting case, thanks for sharing, I'm curious to see how this games out. Also, if you're a history buff, check out how some of these scams gamed out in the 80's when we had a condo boom (mostly in the suburbs because the City was an armpit and people were fleeing them).

Guest · Posted: Mon Oct 05, 2009 6:01 pm GMT Post subject:

that is a per month fee-- hard to imagine huh??? they use the example if 1774sqft place with 1080per month fee...

JCK · Joined: 15 Feb 2007 Posts: 559

Good grief. I just don't see the appeal here.

How much do SFH cost in Natick? I'd imagine at $0.5m you could get something decent there (or at least better than an 1 BR at the mall...)

Guest · Posted: Thu Oct 08, 2009 4:03 pm GMT Post subject:

Individuals such as the ones who purchase one of these condos as investments are the ones who got us into this mess. Any way you cut this purchase as an investment it doesn't even come close to working out. I just can't understand what these people were thinking?? Of course we all will be paying for it in the end when it's foreclosed upon in the future.