buying apartment NYC

I've been investing for a down payment on my first apartment (hopefully in NYC Fidi, Upper East, Murray Hill, Soho) for a while now and have 15,000 saved... I'm still 19 so I should have time to get that number up to a sizable down payment (20%) by the time I finish a 2-3 year analysts stint and am around 24-25. Prior to that, I plan on renting with roommates mostly just for the social aspect... (I could definitely save more, but I enjoy some luxuries in life which my parents don't always cover)

Anyway, I have a very successful parent in PERE he/she keeps on telling me how low the Manhattan apartment market is going to go in 3-4 years once developers and banks really feel the squeeze of coronavirus and people start to move out of the city. (I think NYC population has been decreasing for a while now). Is he/she right? What do people think is going to happen to the 1 bedroom market there? If an apartment in one of the these neighborhoods costs 700,000 today.... Could it really be worth like 450,000-500,000 in 4 years?

6 Comments
 

I'm not really familiar with the ins and outs of Manhattan real estate, but based off of the sniff test alone, if a 700k condo drops to 450k, we've got some serious problems.

Also, i think it's totally reasonable to save $100k+ by 25, you just have to be really disciplined. That being said, it's not necessarily the best idea to tie all your net worth up in a property

 

It’s not going to be worth less necessarily (inflation) but it’s possible it won’t be worth much more because 1) bigger and better buildings are always going up in Manhattan/ Brooklyn (maybe not as much as now but there will still be some) and 2) you could possibly make more from investing that down payment into other options, either short or long term.

You make big returns on real estate by buying in an up and coming market and that glory period is over. Fees in nyc are also insane and you’ll bleed outta your ass when you decide to sell. It’s still a good investment if your mortgage, HOA, etc are a second thought but I think you could do better elsewhere

 

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