Finished 1st analyst year in IB in NYC. Have just below $300,000 saved from working since 16 + investing. Is it worth it to put a 20% down payment on a place instead of renting now. Even if I left NYC down the road considering the housing crisis in NY I don’t think its a bad idea.
But would like advice from anyone regardless.
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that would be pretty sick having your own apartment at 21 that you could sublet
Based on the most helpful WSO content, here are some key considerations for buying an apartment in NYC:
Down Payment Feasibility:
With nearly $300,000 saved, you could comfortably afford a 20% down payment on a property priced up to $1.5 million. However, keep in mind additional costs like closing fees, property taxes, and maintenance charges.
Market Conditions:
The NYC real estate market has been described as precarious in recent years. Some threads suggest waiting due to market instability, oversupply in the luxury segment, and potential price drops. For example, the ultra-high-end luxury market is oversupplied, creating downward pressure on prices.
Short-Term vs. Long-Term Goals:
If you’re considering leaving NYC in the future, buying a property might not be the best move unless you’re confident in its rental income potential or resale value. Studios and smaller units, for instance, may not be ideal long-term investments as they often lack significant appreciation potential.
Renting vs. Buying:
Renting could offer flexibility, especially if you’re unsure about staying in NYC long-term. The luxury rental market is currently offering concessions, meaning you could live in a better unit for less money without the commitment of ownership.
Investment Alternatives:
Some WSO users suggest that instead of tying up capital in a down payment, you could invest the money elsewhere for potentially higher returns. For instance, taking the difference between rent and ownership costs and investing it could yield better financial outcomes.
Economic and Policy Risks:
NYC’s housing market is influenced by factors like rent laws, economic shifts, and demographic changes. For example, new rent laws and increased flip taxes have made it harder for investors to profit from real estate in NYC.
Advice:
Would you like more detailed insights on any of these points?
Sources: Buying an Apartment in NYC, https://www.wallstreetoasis.com/forum/real-estate/looking-at-my-first-investment-property-in-nyc-any-advice?customgpt=1, buying apartment NYC, Multi Family Investing - New York City, 1st year analysts: stupid to move into NYC right now?
yes i watched this youtube vid and i think it makes sense
this is when mortgage rates were 3% lmao
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