A lease with an option to buy is a rare and attractive option for someone looking to live in a house before making the ultimate decision to purchase. This structure would allow for a much more relaxed process, where the buyer could take time to obtain financing. It could also be much more cost effective.
Massey Knakal Realty Services has been retained on an exclusive basis to sell a townhouse at 118 Washington Place. The property is located between Sixth Avenue and West 4th Street in Manhattan’s Greenwich Village Historic District. The asking price is $7,995,000.
Ownership has now offered a prospective buyer the ability to lease the owner’s triplex for $15,000 per month. These rental payments would be credited towards a purchase when and if the tenant ultimately bought the property.
These rental payments could be significantly less than the carrying costs if purchased. If a buyer received 60% financing for the house at 3.5% interest, the debt service alone would be about $270,000 per year. Real estate and operating taxes would be an additional amount of about $50,000. Combined these ownership costs are well above the rental amount. However, appreciation is a large consideration that renting does not afford. The potential buyer would have the best of both worlds if renting, while values continue to increase.
The four-story newly-renovated townhouse contains approximately 3,106 square feet and sits on an 18’ x 71’ lot. It consists of a one-bedroom garden unit which is currently being rented for $4,700 per month, an owner’s triplex unit, and an almost 30 foot southern facing rear yard. Plans exist for an easy conversion to a single family. This townhouse is located on one of the most desirable blocks in Manhattan and it benefits from original detail and tremendous light with a setback sunroom.
“2013 saw multiple finished townhouse sales eclipsing the $3,000 per square foot mark. 49 Barrow Street, 281 West 4th Street, and 75 ½ Bedford Street are just a few that were at the top of the 2013 sales market with 49 Barrow Street selling at $3,684 per square foot. In relation, 118 Washington is a great value,” said Massey Knakal’s James P. Nelson, who is exclusively marketing this property with Mitchell Levine.
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Neighborhoods: Greenwich Village