Listed for $899,000 last month, the bright Lumina Plaza unit #7C at 333 Beale Street, a 916-square-foot, one-bedroom unit with a den/office and extra half-bath, was in contract within two weeks of hitting the market! And the sale has already closed escrow with an “over asking” contract price of $920,000!
Having previously sold for $1,325,100 in December of 2015, however, the re-sale was down 30.6 percent on an apples-to-apples basis, from its value at the end of 2015. But again, it was a fast, “over asking” sale, perhaps with “multiple offers!” as well.
Over Asking! In your face haters!
If the photos shown above reflect the condition of the unit while it was on the market, at least the seller saved some money by not employing a stager.
Property tax + HOA dues= $2100 plus any mortgage payments assuming it’s not an all cash purchase. All of this to live in somewhat banal and dull lifeless area in a unit with a view of a tower 15′ away with no direct access to outdoor space. I don’t understand the appeal, but I guess it’s a deal!
Even suckers need a place to call home.
Everyone who owns pays property taxes, and there are many places with steeper taxes than California. But man those HOA dues are insane!
What a great deal. It’s a great building. The posters on here don’t know how great it is to live in a full amenity building.
2 closets + W/D.
with 920K you can get about $4000/month income just from a savings account. why not just hold on to the money and rent a nice 1/1 “for free” with the $4000, and not pay any HOA & property taxes and avoid risking further depreciation and hoa assessment / drama.
You’re assuming the buyer had 920K in cash sitting in a savings account to buy this unit…that’s probably not the case so the 4K monthly income you calculate was simply not an option.
but for rent vs buy comparison it’s the same thing whether they paid cash, or borrowed money, as you pay the interest either in opportunity cost or to the bank.
In the real world, I think it’s extraordinarily unlikely that this buyer was going to be able to locate a comparable unit to rent for $4000 per month without having to account for the rent increases that come with a market-rate unit. Lumina was new construction in 2015, so your hypothetical rich tenant can have their rent increased by any amount at any time with a proper written notice.
Rent vs buy comparisons are kinda pointless in this situation because you can’t accurately forecast how much of your future earnings (or, in your scenario, future interest payments from savings) are going to be eaten up by a rapacious landlord. In your scenario, the buyer wouldn’t be holding on to their money, they’d be swapping those HOA, property taxes and further depreciation risks for the risk of future rent hikes.
fair enough and balanced points.
Where could you have found 3.5% risk free yield on a million dollars while remaining liquid?
Basically any CD from any bank anywhere, even 1 month treasuries yield 4%.
Truly astonishing that this was 1.3M in 2015 for a podium 1 bedroom with no semblance of a view. Lumina marketing must have been best in class.
It was the market at the time, not the building’s marketing team. And if this was worth $1.3 million, then this was worth $6.1M. And so on and so forth but now in reverse.
All the white walls and harsh LED lighting makes this unit look like it’s lit like a grocery store milk aisle.
Probably bought by a young 20 something who works in the neighborhood making large 6 figures who needs a place to crash in between those 16-18 hour work days
Or foreign capital flight. Or short-term rental pirates. Or private equity speculation. All creatures of twin “tech” and asset bubbles blown by historically accommodative monetary policy. Said asset-boosting monetary policy is now reversing course, so its spawned bubbles are deflating, and the creatures are therefore going the way of the dodo. Now excuse while I dodge another moving van.
Number of large 6 figure salaried jobs is shrinking. Employees who had leverage back in ’20-’21 have almost none of that in ’23.
My comrade on the front line of the class war, what exactly are you hoping for other than more such stories in which to make your rote comments?
Mon ami bourgeois et secret, I’m really hoping for stories about a return to endlessly increasing rent and property prices, so that I can make such rote comments as “buy now or be priced out forever” and “buy the most home you can afford and don’t worry about the price: you can always refinance later, because real estate always goes up,”
I’ve been wondering for some time what the members of San Francisco’s petite bourgeoisie landlord class hope to achieve by continually making rote comments about leaving S.F. and why no one should lease out property in The City in these comment threads. Maybe you can answer that one for me.
Humans secretly and subconsciously desire to submit to failure and humiliation even if consciously and rationally they aspire for material and social success. Animal spirits.