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Renting Chic

By
Managing Real Estate Broker with Howard Hanna Rand Realty License # 49FA1074963

It seems that anything the New York Times writes about suddenly becomes the fab new trend. Renting is now the chic thing in New York City. The upshot of the article is that renting is simpler, often cheaper, and has far fewer headaches. While one of the people interviewed did get a little misty eyed at not having a Viking stove, overall he was at peace with it. 

This is not what I would call the best reporting from the Times. I could care less about yuppies with a "been there, done that" attitude about writing off their mortgage interest on their taxes. I thought initially it was more hard hitting reportage about people who lost their homes and had to rent, which would have been timely and relevant. Instead, it was fluff, no doubt pandering to some in the Times' ever shrinking base: limousine liberals who were victims of the economy who would love to hear that renting is cool because the Times says it is.

Why is renting the emblem of conservative republican oppression when a Bush or  Reagan is in the Oval Office, and the new cool fad when Obama is the Chief Executive?   

Of course, the subjects in the article are mentioned as paying $5000 per month in rent like that is some bargain. Would you (can you?) pay $5000 per month for 800 square feet? I'll bet the rest of the 99% of Americans who bother to read this just shake their heads and view New Yorkers like Martians. 

Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

I'm currently reading the book 740 Park Avenue about the BEGINNING of Expensive Apartment Buildings in the US...loads of history * Jackie O's grandfather lived there * and REALLY interesting how the "rich" made downsizing CHIC a century ago....what goes around, comes around as they say.

Oct 13, 2009 02:40 AM
Eileen Hsu
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

Phil, we help renter find properties too. Trust me, not everything is so glamourous in the rental properties. There are $1,000 rental for 300 SF in a dingy building!

Oct 13, 2009 12:38 PM
Mitchell J Hall
Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

I just read the article and it is pretty accurate except the Times is always a few months behind the curve. Manhattan has always been a rental market. 75% of all our housing is rentals. Very few people owned before the 80's when rental buildings converted to coops and condos.

Wealthy people have always rented here and always will. While I have done more rental deals this year than in my whole career the sales market seems to have turned these last several weeks. We are seeing bidding wars and a lack of inventory.

You can put a political spin on the article but it has nothing to do with Bush or Obama liberal or conservative oppression or chic. It's just reality. I'm a renter I sold my apartment in 2005 after it more than tripled in price. It's great to have that option either to rent or buy.

The only thing the article didn't mention is how qualified you have to be to rent in Manhattan. Rentals require the applicant to make 40-45x the rent in documented annual income. Employer verification letter, tax returns, pay stubs, a good credit report, landlord, personal and business reference letters are required for most buildings.

Unfortunately someone who lost their home and has to rent probably would not qualify for a rental in Manhattan.

Actually you can get a viking oven in a rental. Many new buildings have them. The equivalent of a $5000 rental would probably cost $1.2M to buy. Unless you're paying cash $5000/month is a bargain compared to combined mortgage and maintenance charges. It's all relative. Fortunately we haven't seen many foreclosures here. Perhaps because of the strict financial requirements unique to NYC.

Oct 13, 2009 12:42 PM
Barb Fischer
Big Block Realty - La Mesa, CA
San Diego and La Mesa Real Estate

The more we own, the more we have to take care of, and spend time and money maintaining. I spent 40 minutes today trying to renew a website--just one website that I "own". I sure want less in my life!

Oct 13, 2009 02:57 PM