If At First You Cannot Sell, Rent Rent Again

15 Terrace Avenue did NOT sell for $3.795M, but it rented for $14,000/mo., how'zat?

15 Terrace Avenue did NOT sell for $3.795M, but it rented for $14,000/mo., how’zat? Note: Link is for all three properties mentioned here.

Not everyone has this option, of course. If, for instance, you need the proceeds from the sale of one home to finance your next, you cannot go the rental route. On the other hand, builders have used the rental “escape-hatch” for years and years, typically when they’ve over-priced their new mansion and can’t face that reality (or can’t convince their investors to face it).

Even during the extreme slow-down/crash of 2009-2011, Greenwich rental rates hung in there, saving many a builder butt. You say no one wants your $7,000,000 spec house (which is actually worth $5.3M)? No problem, someone will gladly pay you $30,000 per month to rent it! $360,000 per year kinda takes the sting out of holding it, don’t it, Bunky?

Here are two more examples of recent (Riverside) rentals of brand new houses. These rental amounts are amazing…

14 Palmer Terrace rents for $14,750/mo (was offered for sale).

14 Palmer Terrace rents for $14,750/mo (was never offered for sale).

42 Hendrie Avenue, directly across from Eastern Middle School, di NOT sell for $2.595M BUT did rent for the princely sum of $11,375/mo.

42 Hendrie Avenue, directly across from Eastern Middle School, did NOT sell for $2.595M BUT did rent for the princely sum of $11,375/mo. Suh-WEET!

 

4 thoughts on “If At First You Cannot Sell, Rent Rent Again

  1. The design challenges with putting a garage not facing the front of the house seem to far outweigh the “advantage”. 15 Terrace looks like a sideways house, and 42 Hendrie has a driveweay into the front door.

    • Anon:
      Two things…
      Given the choice, most architects will NOT face garage doors to the street, some street associations even prohibit street-facing garages, for aesthetic reasons.
      Second, narrow lots force all sorts of artistic challenges!

      • That’s the problem. Letting the architect drive design decisions without a reasonable solution. Maybe it’s just New England, but front facing garage is standard anywhere else.

      • Anon:
        Narrow lots, combined with the public’s continuing preference for big houses, is the problem. Otherwise acceptable looking designs end up looking “squeezed”.

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