Happy Halloween! I just personally previewed this studio unit in Back Bay, listed for $255,000. The unit is a small, partially below grade studio, that has decent light and is functional in its layout. While small, the updates are decent and the unit itself The location is right on Beacon St. in Back Bay, near the Esplanade and Boston Public Garden. The price got me thinking how much this unit would cost per month with a 20% down payment. The rental market was fast and furious this past season, so anyone who was somehow involved might appreciate this analysis, given the historically low mortgage rates and the low inventory/high price dynamic in the rental market.
Results assume a $255,000 purchase price, 20% down payment, 30 yr. fixed @ 3.6%, HOA of $191.38/month, and property tax of $345/month. Data is strictly for example purposes only and these inputs cannot be guaranteed or may not be available. Screenshot courtesy of Mortgage Payment Calculator Free, by Null Technologies LLC.
So for roughly $1500 per month you can outright own this studio in Back Bay. Now this is just a quick example, and keep in mind that these numbers should be kept flexible, but I believe this quick-and-dirty analysis shows there is value in a property like this. I’ve searched for recently rented comps in the near vicinity and similar units were ranging from roughly $1600-$1850, and some higher. There would need to be more due diligence done, but to have a unit like this, in this location and at this price point, could provide real value for the right type of buyer, particularly one who is on the fence as to whether to rent or buy. Perhaps someone who is moving to Boston for a few years for work/school/assignment, or someone who’s child is moving into Boston for school. This unit would provide easy access to many of Boston’s universities, hospitals, and downtown businesses. Just a thought. Enjoy the day.
See the property here – Unit Boston - 125 Beacon St., #2, Boston, MA 02116
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