If location is so important in the world of real estate - why are people buying condos in Fort Greene located next to ghettos for 500k - 1 million $

Asked by Homegirl, Brooklyn, OH Sat Aug 6, 2011

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J. Kendrick, Renter, New York, NY
Sun Mar 10, 2013
Gentrification will make property values increase. All the hipster/WASPy yuppie artist types will move in and you will see a working class exodus. Basically, half of BK is becoming little Williamsburg :-/
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Christopher…, Agent, Staten Island, NY
Thu Aug 11, 2011
Many asked similar questions of buyers who bought houses in Williamsburg or Park Slope back in late 90's. Close proximity to Manhattan makes it attractive to people who want easy commute to work or can't afford Manhattan prices.
Web Reference:  http://www.718forsale.com
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Post87, Home Buyer, Bronxville, NY
Tue Aug 9, 2011
I think at least some people are buying on the expectation that the Ingersoll Projects will be dismantled in a few years, once more Section 8 housing becomes available as a result of the Atlantic Yards development. It may be risky, and it may take much longer than expected for the Ingersoll redevelopment to happen. (Compare to other public projects, such as the Second Avenue Subway, which was originally supposed to be completed in the 1960s!)

Others may be okay living next to a public housing project because there's also a police station right there.

In general I think housing throughout NYC is still deep in bubble territory, and we are in for a long slow decline to the bottom just like the 1990s. But if you think Manhattan still makes sense at $1,000/sf then Downtown Brooklyn at $600/sf is not crazy.
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Vish373, , Queens County, NY
Mon Aug 8, 2011
To ask the question is to answer it. Those areas are not just any ghettos. Brooklyn and anywhere in NYC, especially close to Manhattan, has the cool factor - urban authenticity (several legendary hip hop stars are from BedStuy, for example) an element of danger, edginess, charm, a very long/rich history, cultural diversity (lots of different races, immigrants from all over the world, etc), eclecticism - all of which appeal to many hipsters, artists, students, young professionals, celebs and other trendsetter types.

And it's not just proximity to people's jobs in Manhattan, because as Vincent stated, even many areas there were industrial slums before they became upscale areas. It has much more to do with the fact that many people don't want to live a bland, conservative, suburban existence even when they have the money to do so.
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Homegirl, Home Buyer, Brooklyn, OH
Sun Aug 7, 2011
Doesn't seem that intense Vincent...sounds like the other agent's had it right..people want to live close to Manhattan and these luxury condos in Fort Greene is the answer!
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Homegirl, Home Buyer, Brooklyn, OH
Sun Aug 7, 2011
Doesn't seem that intense Vincent...sounds like the other agent's had it right..people want to live close to Manhattan and these luxury condos in Fort Greene is the answer!
0 votes
Joseph Runfo…, Agent, Staten Island, NY
Sat Aug 6, 2011
Location is important.Fort Greene is home to many young families, professionals, artists, and new restaurants. It is an excellent location for Manhattan commuters, and is much more affordable.
Web Reference:  http://www.clovelake.com
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Jack Gillis, Agent, Dallas, TX
Sat Aug 6, 2011
Several years ago you could buy old apartment buildings and warehouses for almost nothing. People were scared to even go to this part of town at night. However, one man saw what it could be and purchased 2 old apartment buildings, joined them together, gutted the interiors and moved into a rather large residence. The area is known as Ocean Dr., South Beach, FL. A lot of people, young and old, no longer want to live in suburbia; instead they want to be in the City, away from children, and enjoy the urban lifestyle. The only way to do that in most modern cities today is renovate the old and it has to start somewhere.
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Vincent Agri, , Brooklyn, NY
Sat Aug 6, 2011
If you were to look at many development sites that didn't make sense and present that same argument, you would most likely kick yourself for not being smart enough to get in on them when the prices were good. I agree that $500k - $1M seems outrageous for condos in most areas, take a look at the Meat packing district in Manhattan. This was once an area littered with drugs, prostitutes and meat processing plants and abandoned buildings. An area that was both, unattractive and unsafe. That particular area is now one of the most sort after areas in Manhattan for developers, business owners and residents. When it first developed, did you also wonder, how could they get the prices they want for this horrible area. Well that investment less than 10 years ago would have doubled to tripled your investment as a purchase and as a rental income property probably would have been a major contributor to your retirement portfolio. Maybe you need to join Real Estate for Thinkers, (Google it) and readjust your thinking about Real Estate investing.
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