I’m looking to buy a 1 BD place in one of Brooklyn’s more tertiary markets where you can find a decent co-op for ~$350-$400k. We’ve obviously seen a correction on the high end of the housing market the last year but does that necessarily mean that a correction is going to hit the lower end of the market at some point? Trump’s tax caps don’t really effect the lower end of the housing market and I think even if we have a recession, affordable housing options are still going to be in high demand in NYC. Most of the overbuilding that has taken place the last 5 years has been on the high end of the market and there is still a huge shortage of market rate affordable housing in NYC. I just don’t feel good about paying $400k for something that sold for $250k in 2015.
Should I wait this out in the hopes of a correction or do I buy as soon as I have a 20% down payment saved? This is a place I expect to live in for at least 5 years.
The trick is to buy low and sell high
What do you consider a "tertiary" market? I mean, you need to be realistic about what that kind of money is going to buy you; you're a solid 45 minutes to an hour from Manhattan. Additionally, fees and all that shit is going to be a major pain in the ass if you're only holding for 5 years; if that's the timeline to live there, renting may be a better move.
And unfortunately, you won't see much building at the 400k range to start driving down pricing. The reason so much of the housing being built in the city is high end (or super affordable) is because land prices and construction costs are out of control; it's not really possible to build to housing when you're exiting at 500/ft.
any chance you can buy a duplex? I just bought a new $400K duplex a couple blocks from a major downtown in an area that is gentrifying, the lease on the other unit just started for $1500/month, my housing expense is $300 a month when factoring in principal pay down, tax benefits.
I am shielded from any significant inflation, I am open to a lot of upside for appreciation, I am living almost for free.
EDIT: I understand, NYC is a lot different, but the concepts match
A livable duplex in one of Brooklyn’s more tertiary markets is $800-$900k. A duplex in Manhattan is probably more along the lines of $5 mil. I wish I lived in a more affordable city when I hear things like this.
The "feeling" you have about buying something almost twice what it sold for is a great gut indication that you probably shouldn't buy. I currently work in NYC I-Sales and I can tell you that things are slowing down big time. This just isn't the time to make a buy.
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