35 Bramble Lane Sells, Record Price For Street?

Nope, it’s not. The street record belongs to 1 Bramble Lane, that fetched $4,050,000 in 2008. Second and third place goes to 26 Bramble, it got $3,725,000 in August, 2007, and then sold again, in February of this year, for $3,497,419.

So, for fourth place bragging rights, I give you…

35 Bramble Lane, Riverside (link shows before/after) sells for $3,325,000 a few days ago.

List: Kathryn Clauss and Joanne Mancuso

Sell: Diddle McAllister

35 Bramble Lane before. Cute little shack, but its time had come...

35 Bramble Lane Before (cute little shack, but its time had come…)

photo

35 Bramble Lane…After (Really, really nice interior)

This was one of the many, many 1950’s split-level style tear-downs on Bramble and surrounding streets. As you’ll see on the above link, it sold for $1,250,000 in November, 2011. From start to finish, the builder got the job done in just one year and four months, which seems like quick work, given all the government-caused impediments that builders face.

The on-going replacement of the housing stock on the streets around Riverside School is, on the whole, a good thing. Sure, some of them look a bit oversized for their lots, but they all represent a huge improvement over the houses they replace. The 1950’s split-levels served their owners well over the years, but these days, their low ceilings and frankly “odd” layouts no longer cut it.

14 thoughts on “35 Bramble Lane Sells, Record Price For Street?

  1. $1.25 mm on land. if $300 per sqft, 1.65 mm. $2.9 mm, the builder made 0.5 mm in one and half year…. return rate 17% ….with the energy and time, what’s the point?

    • Anon:
      Hmmm….well, maybe he (they) will get THREE projects done in that time period, wouldn’t THAT be worthwhile? Also, it’s possible you’re over-estimating the builder’s per square foot costs.

      • Have you heard about leverage?

        Taking 80% construction loan for 2 years at a cost of less than 2% and investing at 17% yield, brings your actual equity yield to a whopping 81.8% pre-tax

        Y = .17/(1-0.80)-.02*2*.8 = .818

      • North:
        Indeed a good point. Not sure what percentage of builders use bank loans vs. investors as a source of capital, but certainly the extreme low cost of money makes loans appealing.

        One other note: I think observers of the “spec” building business sometimes overestimate not just the actual cost-per-square-foot number, but also the square footage of FINISHED space, with the result being an overly high estimate of the builder’s total cost figure.

    • I am glad you are so rich that a $500K profit in 18 months is not worth the time? For most people making that money is a nice standard of living, and I assume the builder had other business going on in the 18 month period.

      • Anon:
        And that’s ANOTHER good point, what’s wrong with a $500,000 profit? Not to mention, I also think it’s entirely likely the builder’s profit was higher than that (reader’s) estimate.

  2. The $300/sf cost should really only be applied to the above ground space which going by the other Fountain’s post on this, is a maximum of 3,843 sf. That drops the construction cost to $1.15M.

    The amount of construction going on in Riverside is absurd. That should be the most obvious sign that these builders are doing quite well cranking these homes out at a “measly” 500k+ profit.

  3. with the money, why not put into hedge funds, where, on average, you get 10-15% return. most important: you sit and do nothing

    • Because you can build a house with borrowed money at low interest rates. If you think hedge funds provide average returns of 10-15% you are wrong, very few do that well and most of the top ones have minimum investments in the millions. You cannot get 3x leverage on a portfolio of hedge fund investments, unless you are putting up other property as collateral.

      • well, even if you got bank loans. you’d need to pay 20%, wouldn’t you? with the land and building cost, then I assume you are not far away from the 1mm minimum. if hedge funds can’t achieve 10% on average. what’s the point to have a hedge fund? should just go to China for usurious loan, which is guaranteed a 15% interest rate.lol

    • Glad you pointed it out. I was tempted to but then I recalled how many, many times I’ve written in haste only to reedit at leisure so I restrained tongue and pen. But now that you’ve broken the ice …

      • ChrisFount:
        Wait! What, exactly, did I “point out”? What “ice” did I break? The fact that 1950’s split-levels have reached the end of their useful lives? Was that a deep, dark secret?

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