From: christine (christine@napc.com)
Date: 07/09/01-09:31:31 AM Z
Hi Judy,
Thanks for your response. However, the real estate market in Massachusetts
is so *good* (depending on how you look at it) you can't buy a house
anywhere in this state for less than $300,000. Especially in the heart of
the city where the slums used to be because that area is now seen as hip and
cool and all the yuppies have taken over. There is a big hullaballoo over
this in Boston, because the low-income families are being pushed out of their
homes that they can't afford anymore and have no place to go. Meanwhile, the
Ritz-Carlton is building a huge high-rise in the middle of the city for
"luxury condominiums". I used to rent an apartment in one of the slums - we
paid $800 a month for a beautiful old four bedroom house. Now the rent for
that apartment is $2200 a month.
Hopefully if I get a raise this month I can start saving money, but as it
stands, I don't even have a savings account. Guess it'll be awhile before I
can buy property. Maybe the recession will ease things up a bit.
Cheers,
Christine
Judy Seigel wrote:
> Christine, my point was that pretty much any one can do it provided....
> provided they can stand the strain & the austerity. Though you do need
> SOME savings to start. And now you'd probably have to go to the equivalent
> of Astoria, or Williamsburg, ie, out of the city center. In fact friends
> of ours just bought a 4 story house in what can only be called a
> "Carribean Island" in Brooklyn. The value almost doubled between the time
> they went to contract & took possession.
>
> We had $7,000 in savings, which in 1957 was a bit above the median annual
> income for working head of family ($5000), so you'd probably need about
> $45,000 today. (After all, the reason for doing the hateful work was
> because it WAS lucrative. I was making what we called, really, I'm not
> making this up: "Good money for a woman.")
>
> The "income-producing property," however, is *easier* to swing, because
> bank will give a larger loan. We had 1st mortgage, 2nd mortgage, private
> loan, home improvement loan, + loan for heating unit. A lot of real estate
> pricing is psychological-- you get more house for the money because of the
> stigma (or whatever you call it) of being a landlord, at least in NYC.
> If you check the ads you'll see you can still buy a "handyman special" --
> 4 stories + yard -- for price of a co-op. But in this area NOW that's
> likely to be out of range.
>
> As noted, you want a *marginal* area, meaning you also have to be lucky
> (or smart -- ideally both) so it improves. In 1957 inner cities across
> the board were considered doomed. This neighborhood is/was on the fringes
> of "Little Italy" -- today that's status, then it was considered a slum --
> & much of it slated for demolition for Cross Manhattan Expressway, etc.
> etc. etc. (Of course my mother always considered this neighborhood a
> slum... Which is to say, your family may freak.)
>
> good luck,
>
> Judy
This archive was generated by hypermail 2b30 : 08/02/01-11:56:46 AM Z CST