When did you guys in NYC purchase your first condo/house?
I'd like to know at what age, title, etc you started making this kind of investments. What neighborhood and number of rooms, payment ( all cash, anyone? ) stuff for most of you. Thanks!
In before the shit fest.
Do you even live in NYC yet?
The only people I know who own their apartments are people in their late 30s or older, people who have rich parents who bought it as an investment and their kids pay the mortgage and/or maintenance fee like rent, and people who own their own companies, fashion studio, this, that, etc. and can write off half the apartment as an office.
thanks for the input. Isn't owning cheaper than renting these days as long as you can put down a 20%? Ok, well, I was just wondering most new yorkers start buying their own place around about age? Late 30s make sense. They say you will be taken seriously as a man only after you own your place, no?
Do you know what 20% down is in NYC?
Who says that? And fuck those people. Why do I care what they think of my manhood?
This is probably true of everywhere outside of NYC and SF (domestically). And that $200k down payment isn't going to get you a whole lot in either city.
It's not cheaper in nyc.
Inherited a Château towards the fin de siècle. Great little weekend getaway from l'animation on Park.
@the_stig Dude, its so easy to have $200k in the bank ready to throw down on a 500sqf loft.
so what's the appeal of loft to you guys? I've seen some go for that when apartment hunting
Wow, this escalated quickly. Perfectly reasonable query / topic in my opinion.
I don't think this question is that bad. If you plan on living in Manhattan for 10+ years, it makes sense to try and get that $200,000 down payment together.
Lol at the guy not realizing a 500 sq ft loft was a play on the idea that a studio is a 'junior loft' in broker babble
The answer is they bought it when they left NYC
My parents bought into 2 co-ops years ago. Recently I have been paying the maintenance, surcharge etc in one of them...I agree even with a co-op the buy in now is about 100k to 150k.
What size apts, age apartments are these? Also, this may be a stupid question but are how much and why are the rates different in coops vs private buildings? From the very meagre amount of knowledge I have regarding this, 200K isn't really enough for a 20% down payment in manhattan. Am I completely misinformed?
But there are some 1 bedrooms on Manhattan in less desirable locations that go for as low as 500-600k but they usually aren't places you'd want to stay long term so I don't know why people buy them except to rent out.
A big part of the problem here is that if you buy you want to be in a place you will stay long term into older age. And the middle range, probably south of 1.5m, won't be places you'll want to stay long term. And if you want a family, that won't be enough for good space. So now if you actually want a long term home you are looking at closer to 2-2.5m at min for a 2 kid family. And it's not just 20% down, it's very stringent liquid asset requirements. They often want liquid assets to cover 2 years of mortgage plus maintenance after other debt and the 20% down. So at 2m you are looking at having at least 800-1m liquid net other current debt. That's rough for most people. Even bankers.
I know a fair amount of people who never buy in Manhattan because it's really expensive and/or they're locked into a great rent (with or without rent control) who end up buying a weekend/vacation home in CT, on the beach, upstate or in New England.
Buying a Condo/Appt in NYC (Originally Posted: 05/08/2007)
I was wondering how soon people look to buy a place in NYC once they start. It seems like people are "throwing away" a lot of money by paying 1500+ a month rent. So I was wondering how quickly people look to buy.
unless you want to spend over a million, it isn't worth it to buy in manhattan.
condos are expensive. insanely so...a friend of mine just spent 900k on a one bedroom.
im planning on buying after 2 years. i need the employment history in order to apply for a mortgage loan. by that time i should have enough for a small down payment.
the thing is, you never know what you'll be doing 3 years down the road. unless your 100% sure youre ganna be in nyc, i dont think it's a good idea.
"blowing 1500"
Think about it. Most of those condos worth buying having monthly CC and tax totalling around 1500-2000. Let's say 1750 avg. X 12 = $21000 just on the building fees % tax. Plus mortgage and you're spending huge proportions of your income on a place, HUGE proportion...
Then, really, you should only buy a place 2.5 times your income, so you better be a big earner to buy one. All this 'small down payment' crap doesn't really cut it. You get layed off, downsized, or your job exported to China or India and then you're screwed. My point is not that you aren't a badass who probably will get a good job, but that what about those 2-3 month gap when say shit hits the fan and you're not working (just for arguments sake)...do you have a little 15K safety fund to keep you floating?
1500 bucks isn't throwing away money, you're paying for a service. Sometimes 'old fashioned' thinking is a good thing, but use your lil head of finance and start crunching the numbers: they aren't pretty.
Disclaimer: Most of what I said applies to those earning under 300 K a year. If you're earning a solid half million, you can afford a place, inclusive of all the taxes and b.s. Just don't tell me in 2 years you're going to be able to afford one. It's naive.
I have been debating the same thing, and have come up with these pro's and con's
Pro's - Appreciation - 5% a year on a normal place seems somewhat realistic. - Tax write off. On a 500k condo, you will pay around $30k in interest. At a 30% tax bracket, you will save approx $9k give or take.
Con's -Possible illiquidity in selling -Paying a brokers fee when you sell -Real estate taxes and maitenance fees (probably well over 1000 a month) -Putting money into the place for normal wear and tear -Down payment of 10-30% of asking price - where you could invest that money into a risk free security at 5%
You have to determine how long you are going to stay there. The tax benefits of having a mortgage will take a few years to outweigh the costs of purchasing a place.
If you plan on moving to a new city, or moving up to a better place in a couple years, it definitely isn't worth it. Then again, you can always keep the old place and rent it out.
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