The sale of 1 Rausch #H closed escrow on Tuesday with a reported contract price of $1,400,000 ($576 per square).
Purchased for $1,380,000 in August 2005, we featured it last April when asking $1,695,000 (but not this past January when it returned to the market asking $1,545,000 or was subsequently reduced to $1,445,000).
20k in 5 years (minus transaction costs, interest, taxes, etc)? Ouch.
Yeah, but you never seen anyone get this rich renting…
Surely the current buyer will make a killing over the next 5 years. Non-linear dynamic alpha relative to peers plus low inventory.
I’m don’t want to get too deeply into an argument whether this is a “good” or “bad” buy, as it seems every post seems to degenerate into. But if this was purchased without a bank, then the buyer is rich enough to not care about “getting rich,” and if this WAS purchased with a bank, then perhaps with today’s slightly more stringent lending policies, the buyer is actually able to afford it. Maybe the buyer doesn’t care about getting rich off of real estate. The buyer is just going to enjoy this sweet sweet loft in an area that this buyer has already decided he/she can live in happily.
Buying real estate in SF seems to be like marriage, more about love and (unrealistic?) expectations and less about sense than maybe it should be. Y’all can analyze this all to death, but someone made a choice here, and only time will tell.
I really enjoyed reading the previous posts about the hood. Oh – and congrats to the buyer. Great place!
I too read the previous back story on this losft sale and sorry neighborhood haters…………..this loft is just ‘too cool for school’
Please invite me over new owner…..I will bring the champagne.
Well I have no idea about the financing, I am sure some plugged in reader will dig that up, but I wouldn’t be surprised if there was a 5yr I/O recast that got this seller motivated to sell.
and while no one got rich BY renting plenty of people get rich WHILE renting.
Of course, if you think home ownership (note I am not talking about RE investing) is a path to riches I suggest you consider the full costs of ownership. Here is a good place to start http://finance.yahoo.com/real-estate/article/102603/why-your-home-is-not-the-investment-you-think-it-is
I also, love the idea that individuals who buy these homes are ‘too rich to care’ about losing wheelbarrows of money on 5 years interest, taxes, maintainence, HOAs, transaction costs and other expenses only to sell at a loss.
But I do love the loft and hope the new owner enjoys their new home and the old owner is still doing well.
Lender #1 Wells Fargo Bk Na
Loan amount #1 $1,035,000
Rate type #1 Variable
This place is sick and would be 3M in brooklyn and 6 in NYC.
We do value privacy, so I’ll just say Current TV and leave it at that…
Very very sweet, now this is a pad !!!