I purchased a few units before the pandemic which was a good investment but now due to high interest rates and high property taxes (and high condo fees) its difficult for me to get a good return from the cash I put in. For example if you have $1 million cash you can get min 5% return from a high yield CD/saving account giving you $50k return each year. If you put that $1 million cash in the S&P 500 you can most likely get min $80k a year in income. But if you buy a $1 1BR luxury condo you can most likely rent it out for $50k a year - but you also need to pay for $8000 condo fees plus $10k real estate taxes. So your $50k retail will be left with $50k - $18k (fees) = $38K profit after condo fees and real estate taxes in a year. So your $1 million investment can only make around 3% return. And now many multi-million $ units have been in the market for a few months and some are selling lower than the seller's purchase price. There is a limit how much a condo can go up. I feel majority of the units in the market now are too expensive to make any good profits even with cash purchase.
True, it’s important to do the due diligence. Condo fees and taxes have gone up making it harder to use Boston real estate as a method of investment. However, I do believe there are still great deals out there - especially within the buildings mentioned.
Yes, in some instances. It depends on length of ownership and several other factors. If it’s done right people can almost live “free” in some of these buildings. Also, if the unit is purchased and leased out, rental income more than accounts for tax/hoa . Really depends on the scenario.
It is not better, it is exactly the same like California. Of course we can't compare with Beverly Hills. But we can compare with any part of California
Very insightful, you should do a video discussing buildings with the highest rental income.
Great idea, I certainly will!
I purchased a few units before the pandemic which was a good investment but now due to high interest rates and high property taxes (and high condo fees) its difficult for me to get a good return from the cash I put in. For example if you have $1 million cash you can get min 5% return from a high yield CD/saving account giving you $50k return each year. If you put that $1 million cash in the S&P 500 you can most likely get min $80k a year in income. But if you buy a $1 1BR luxury condo you can most likely rent it out for $50k a year - but you also need to pay for $8000 condo fees plus $10k real estate taxes. So your $50k retail will be left with $50k - $18k (fees) = $38K profit after condo fees and real estate taxes in a year. So your $1 million investment can only make around 3% return. And now many multi-million $ units have been in the market for a few months and some are selling lower than the seller's purchase price. There is a limit how much a condo can go up. I feel majority of the units in the market now are too expensive to make any good profits even with cash purchase.
True, it’s important to do the due diligence. Condo fees and taxes have gone up making it harder to use Boston real estate as a method of investment. However, I do believe there are still great deals out there - especially within the buildings mentioned.
but, doesn’t the HOA fees/high interest rates negate any appreciation in value?
Yes, in some instances. It depends on length of ownership and several other factors. If it’s done right people can almost live “free” in some of these buildings. Also, if the unit is purchased and leased out, rental income more than accounts for tax/hoa . Really depends on the scenario.
Well it's a lot better than California
It is not better, it is exactly the same like California. Of course we can't compare with Beverly Hills. But we can compare with any part of California
@ any part of California? So does that include Compton, Oakland and the Bay Area?
Yeah.. NO WAY.
@@patriciahughes5592 What