Buying an Apartment in NYC

I have a couple of specific questions below, but for context I'm 25 years old and looking to buy a 1 bedroom apartment in NYC. I have about 100k in savings and I'm looking at apartments in the 400k range (80% LTV + closing costs and a little cushion). I have two questions for the group: 

 

1) As an investment, what are people's thoughts who are more in tune with the NYC real estate market? How much have prices dropped since last March? When will they rebound? Have different types of properties and different neighborhoods been impacted differently? Where is the best value?

 

2) This is really a question for people who have gone through the process of buying in NYC. What do you wish that someone had told you? What are the most important things to look for in an coop? Would people mind sharing a little about their personal experience? Broker, financing recommendations, things to watch out for, etc.?

 

I'm sure there are other forums on this, but didn't see any recent ones. Appreciate the insights!

Comments (3)

 
  • VP in S&T - FI
Jan 13, 2021 - 10:06pm

I've taken a look several times, and ultimately decided against it. My own opinion of the NYC market is that it's only worth buying if you plan on staying here for the long term. HOA and property tax is big chunk relative to the rent of most studios or 1 BRs. I don't know what your plans are for the future, but maybe this is you. For it to really pay off and be advantageous to buy is if you plan on staying here for / or keeping the mortgage for ~10 or 20 years. 

On the lower end, I wouldn't say prices have dropped very much. There is always demand... As it typically goes, it's always the higher end and larger properties that draw the headlines that you are seeing about "NYC real estate dropping or rents dropping".  

 
Jan 14, 2021 - 1:05am

The key is to make sure that interest + property tax + HOA + upkeep / repairs - savings on taxes

 

Interest is the key. You control interest by paying a ton on the down payment. So if you have a ton of cash and are willing to put the required time to maintain the property, then it could make sense.

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