Rent vs Buy NYC
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- level2b
Anyone here gone through the experience of buying a place in NYC or Brooklyn? Advice?
- F_180
i doubt anyone here can afford it.
i sure can't.
- ********0
if you can afford to save 50K and use that to purchase property in nyc you will be one step closer to where you need to be. you dont have to live there at first. it can be used to finace your current apartment and for saving for a better place for yourself.
buy if you can, at least start saving today!!!! so you can one buy something.
your 50K downpayment can become 1million. the real estate in nyc is skyrocketed so high so fast. if you dont start saving for something today, you never will be able to afford anything tomorrow.
- level2b0
Exactly, that damn down payment is the hardest part. I heard about a piggyback loan, which is supposed to help out with the downpayment part. I found a nice place in Williamsburg - girlfriend and I are thinking about getting it..
- johnnyw0
The market right now is saggy. Your theorhetical $50k (which isn't enough to play in Manhattan below 125th street or in Brooklyn north of Windsor Terrace/west of BedStuy) is much more likely to become $40k than 1 million at this point, at least in the short (
- chz0
borrow the downpayment against your mortgage.
- Demo0
Get your parents to give you the cash, that's what everyone here seems to do.
- ********0
Much smarter to buy. Not sure how much capital you have to play with though.
- johnnyw0
"Exactly, that damn down payment is the hardest part. I heard about a piggyback loan, which is supposed to help out with the downpayment part. I found a nice place in Williamsburg - girlfriend and I are thinking about getting it.."
Even if you can find a bank (or banks) that will do full financing, you will end up paying so much for that load, that it would have been a lot cheaper to rent and invest elsewhere. At that point an apartment is not an investment, but a consumable.
Unless there's something really unique about this apartment, it would probably be insane to finance that way.
- dirtydesign0
The average apartment in NYC sells for over $1 million. The majority of those are a one bedroom.
- level2b0
I've reached the point where my rent costs equal that of a regular mortgage. Seems smart to have that money be invested instead of thrown away.
The market does seem a bit laggish right now.....
- lmao0
buy vs. rent:
currently overpriced
- lmao0
I just made that up
- dirtydesign0
Coop are still reasonably priced because the board limits sellling prices. But they also have specific rules about selling, subleasing, renovating, all that junk.
- johnnyw0
"I've reached the point where my rent costs equal that of a regular mortgage. Seems smart to have that money be invested instead of thrown away."
Most of your money gets "thrown away" either way. Unless the market does something spectacular, like triple in four years (oh wait... it just did) you build equity not at the amount that you pay off your mortgage, but some small percentage of that.
From an investment perspective, the question is "what investment will net me a higher return, real estate or something else"?
I would make the case that the NY market probably isn't going to appreciate enough in the short term that it won't even keep up with inflation, and that's even without a "correction" or the bubble bursting.
If you can afford the house you're going to grow old in, fine, but if you're comparing what you can do right now, without even having a down payment at the ready then there's more productive ways to invest.
- level2b0
Thanks for the input..
- tkmeister0
i am currently saving up to buy a place. probably in a year or so, i can buy. if i decide to move out of manhattan before then, i'd buy a fat ass house with that money!
save at least 25% of the asking price. i want to save enough that even after the downpayment, i still have some liquid.
- jevad0
The average apartment in NYC sells for over $1 million. The majority of those are a one bedroom.
dirtydesign
(Jan 23 06, 13:08)that's f-ing nuts
- level2b0
I think I'm gonna stick to Williamsburg, the place I'm looking at is right by the Gretsch building. Brand new, would be the first owner and they only require a 5% down payment..
- ********0
my wife and i were looking to buy; problem is we're only planning on being here for like 4 years;
if you own, you're paying off your loan, (which approximates to about $600/month for every $100,000, i.e. a $500,000 place is about $3000.month for your mortgage), but you can look at that as an investment...
THE PROBLEM is that you have to pay taxes and fees, which in the areas we were looking(hoboken) were about $1,200 a month ON TOP of your monthly payment.Summary:
If the market goes up you're golden.
If the market goes down you're effed.
If the market stays the same, you're still effed because you're dropping $1,200/month on taxes that you won't get back.Our plan:
we're just going to save the $1,200/month we would have paid and then in 4 years have $50k to put towards a house out west.