Here's an update to a prior post on a one bedroom at La Vita.
The unit has just taken a $56,000 price cut to drive the loss to a massive ~$79,000, that's a substantial loss an 18 month and counting investment. In terms of a "rent adjusted cost" calculation the loss plus the mortgage payment is likely $8,000 per month, that's a lot of money for a small one bedroom apartment.
Type: Listed on MLS(#066037517 )
Resale Price: $399,000
Cost: $455,000
Loss@6% Sales Expenses: $79,940
Loss%: 17.57%
Bedrooms: 1
Bathrooms: 1
Square Feet: 706
Purchase Date: 04/29/2005
Holding Period: 18 months and counting...
Purchase Details: view
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4 comments:
Very interesting. As some of you know, I rent at LaVita - a similar square foot in the mid-rise. When I first looked at units in LaVita for purchase in December 2005, a one bedroom on about the 17th floor was around 489K. And that was considered a good price then. I would say these one bedroom units have gone down nearly 100K from their high. . .we are now looking at 20% drop from 2005 highs.
I agree Mark, this is very interesting and I also think La Vita 1 bedrooms are a great indicator of the market since they are all virtually the same size and only vary by view.
This unit is worth at most $1,600 per month to live in (two bedrooms rent for $2,000), if you run the numbers on this the unit is worth barely $200,000. The unit was bought originally from the developer for $292,000.
While I'm not officially predicting a major crash like this you have to take a pause at the numbers and wonder what the future holds.
That's all I see around here too. There are people listing their units for more than 2005 or 2006 purchase prices, but they aren't moving at all, and I'm seeing more and more places being listed for 2004 prices every day.
mark in san diego:
Do you mind sharing what the rental prices are at La Vita? (listed vs actual rent).
Do you like the building and would you recommend it to a buyer (just based on what you know of construction, HOA, etc)?
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