Another eagle-eyed (and elephant-minded) tipster deserves the credit for putting two (a listing for $25,000 a month rental in Russian Hill) and two (the withdrawn listing for 10 Hastings) together. And yes, wondering if the developers (“if we are not successful at selling this at a price that we wish…we’ll just move into it”) have had a change of heart.
∙ $25000 / 6br – Brnd nw lux,6bd,6bth+2pdr rm,sng fm hse,4-cr grg,mst see [craigslist]
∙ Are The Petruzzelli’s Coming To Russian Hill (And 10 Hastings)? [SocketSite]
Posting has been deleted on Craigslist.
[Editor’s Note: While the original post was deleted, a new one has surfaced (and we just updated the link).]
I always giggle when I see homes for rent for $25,000/month. Wow.
it just blows my mind that anybody rents such a thing (I know it happens… it just blows my mind)
it also seems odd to me that such a renter would look on Craigslist!
ROFL.
If you really want a giggle try running the nyt buy v rent calculator on it:
http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html
Even with 4% annual appreciation it makes more sense to RENT at $25K versus buy it at the reduced price they were asking. Even over the long term.
I ran the calculator With a 5% rent increase per year and 7% appreciation on sales price (which is historical return for SF yoy over the past 25 years) you are better off buying in two years.
Contract athletes, Stars with movies to make, those lots of money, mimimum guarenteed time line horizons in town and people who already have several homes are the people who rent at this rental rate.
At this rent, they rent and own simultaneously.
Kathleen: What were your assumptions on down payment and the rate of return on other investments? Is it safe to assume that most buyers at this level pay cash and earn well over 7% on their other investments? Try running the calculator with 7% appreciation on the house, 5% on the rent, 8% return on investments and 90% down to max out a mortgage deduction. You don’t break even after 30 years. And that’s assuming 7% appreciation on SF real estate which I don’t buy whatsoever. Forbes puts the long-term average at closer to 4%.
Michael, let’s not let the facts get in the way of a good story. Besides, we know celebrities and athletes are renowned for their investment acumen (referring to the SocketSite stories on Andre Agassi, Nicholas Cage, Kirk Hammett).