Looking to Buy a house. (Babylon, Rocky Point: rental market, how much, buyer)

[totallyfrazzled]

Originally Posted by seren77

I don't know much about Melville, but I have plenty of friends in Babylon and you rent much cheaper than 2400 in Babylon. It is important to compare apples to apples. So the relevant info should be the rental in Babylon vs. buying in Babylon.

But there are no rentals of the type he was looking for in Babylon. He did not want an apartment in a private house, he wanted upscale garden-apartment complex with amenities like at Avalon. And for that you have to pay the going rate on LI which is $2000 or more for a 2-bedroom. It ended up being a choice between Avalon in Melville at $2200 and Chatham Square in Bay Shore for $2000. He chose Avalon because he wasn't entirely comfortable with the idea of living in Bay Shore. The apartments themselves were comparable in size, condition, and features.

He looked at the Tudor-style apartments on Deer Park Avenue just north of Southern State but didn't like them.

When he was house hunting he wasn't only looking in Babylon, it just so happened that the house he eventually bought happens to be there. When house hunting he was looking in several communities including Babylon, West Islip, Oakdale, Hauppauge, and Smithtown.

I don't see where you see him paying "double". His mortgage payment/taxes/insurance total is only $200/month more than his rent.

The house he bought is one that he intends to stay in for 10, 15, or more years and is the one he intends to eventually raise a family in. He chose to think ahead and buy what he knows he will ultimately need ahead of the time when he actually does "need" it.

Actually he wishes he had bought earlier, meaning before the recent market crash. He lost about 50% of his investments which otherwise would have been available to him for an even larger downpayment. Had he been able to do that, the Loan to Value ratio would have enabled him to get a 15-year mortgage (which he originally planned on doing) instead of the 20-year which is the shortest term he could get after his available assets amount decreased.

[seren77]

Originally Posted by totallyfrazzled

But there are no rentals of the type he was looking for in Babylon. He did not want an apartment in a private house, he wanted upscale garden-apartment complex with amenities like at Avalon. And for that you have to pay the going rate on LI which is $2000 or more for a 2-bedroom. It ended up being a choice between Avalon in Melville at $2200 and Chatham Square in Bay Shore for $2000. He chose Avalon because he wasn't entirely comfortable with the idea of living in Bay Shore. The apartments themselves were comparable in size, condition, and features.

He looked at the Tudor-style apartments on Deer Park Avenue just north of Southern State but didn't like them.

When he was house hunting he wasn't only looking in Babylon, it just so happened that the house he eventually bought happens to be there. When house hunting he was looking in several communities including Babylon, West Islip, Oakdale, Hauppauge, and Smithtown.

I don't see where you see him paying "double". His mortgage payment/taxes/insurance total is only $200/month more than his rent.

The house he bought is one that he intends to stay in for 10, 15, or more years and is the one he intends to eventually raise a family in. He chose to think ahead and buy what he knows he will ultimately need ahead of the time when he actually does "need" it.

Actually he wishes he had bought earlier, meaning before the recent market crash. He lost about 50% of his investments which otherwise would have been available to him for an even larger downpayment. Had he been able to do that, the Loan to Value ratio would have enabled him to get a 15-year mortgage (which he originally planned on doing) instead of the 20-year which is the shortest term he could get after his available assets amount decreased.

So did he buy an upscale house as well? Again, apples to apples. What can he get for rent if he were to rent out his house right now? Will that cover his mortgage plus tax plus upkeep minus benefits?

[totallyfrazzled]

Originally Posted by seren77

So did he buy an upscale house as well? Again, apples to apples.

In fact that's exactly what he did. It's not my place to reveal his financial details on a public forum so all I will say is that the house he bought is not what most people would consider a starter home. It's what most would consider either a first or second trade-up level (depending on what a given buyer originally bought as their "starter").

I have no idea what the whole-house rental market is in Babylon but a quick look at that part of MLSLI shows a fairly comparable one (though different style, his is not a ranch) for $2700/month; it's waterfront so I have no idea how much less it would rent for per month if it were not water.

MLSLI.com – Long Island Real Estate – Find A Home in Nassau, Suffolk & Queens

There's also this non-waterfront Victorian for $2100/mo which is in poorer condition than what my nephew bought.

MLSLI.com – Long Island Real Estate – Find A Home in Nassau, Suffolk & Queens

And this non-waterfront cape which is also not nearly as nice and on a much smaller lot as well, for $2200/month.

MLSLI.com – Long Island Real Estate – Find A Home in Nassau, Suffolk & Queens

So yes I think it is safe to say that he could rent his house out for at least the same $2400 that it is costing him per month for mortgage/insurance/taxes to own.

[seren77]

Originally Posted by totallyfrazzled

In fact that's exactly what he did. It's not my place to reveal his financial details on a public forum so all I will say is that the house he bought is not what most people would consider a starter home. It's what most would consider either a first or second trade-up level (depending on what a given buyer originally bought as their "starter").

I have no idea what the whole-house rental market is in Babylon but a quick look at that part of MLSLI shows a fairly comparable one (though different style, his is not a ranch) for $2700/month; it's waterfront so I have no idea how much less it would rent for per month if it were not water.

MLSLI.com – Long Island Real Estate – Find A Home in Nassau, Suffolk & Queens

There's also this non-waterfront Victorian for $2100/mo which is in poorer condition than what my nephew bought.

MLSLI.com – Long Island Real Estate – Find A Home in Nassau, Suffolk & Queens

And this non-waterfront cape which is also not nearly as nice and on a much smaller lot as well, for $2200/month.

MLSLI.com – Long Island Real Estate – Find A Home in Nassau, Suffolk & Queens

So yes I think it is safe to say that he could rent his house out for at least the same $2400 that it is costing him per month for mortgage/insurance/taxes to own.

Then it is a great buy. This rarely happens on the island.

[totallyfrazzled]

Yes it was an excellent buy and he definitely feels it was worth the wait and hassles of all those months of looking.

I know many people would think that a single person in their mid-20s doesn't "need" such a house, but my nephew has always been big on planning ahead. His logic is that by buying what most would look for in a 2nd-level house now, about 10 years before he plans to start a family, by the time he "needs" a house with 3 bedrooms, a living room, a family room, and a pool he not only will already have it but his mortgage will be at least 50% paid off. He plans to start paying down the mortgage as soon as his income allows him to make extra payments toward principal, so that it will end up being paid off in 15 years. Most people in their mid-30s who do need a family house are looking at a 30-year mortgage commitment for whatever they find, but he will not only already own the house he needs but have it anywhere from 50% to 75% paid off at the same age.

Even if he doesn't pay off the mortgage early, he'll be 45 years old and own a house he loves and that has everything he would need for his family free and clear. Not too many people of that age without piles of money can say that.

I basically did the same thing: Bought a house as a young single and took out a mortgage. In my case I also did make extra payments but I was also lucky enough to get in at the start of the housing boom on LI and so was able to sell my first (which was a starter) house for enough to buy a second larger house for cash and then in turn sell that for a third house. I too used to get questions like "Why do you need such a big house when you don't have kids?" -- as if the only justification for having more than 2 bedrooms or larger than 1200 square feet is that you're a parent. After a while my answers got a bit terse, such as "Because I wanted it and could afford to buy it without going into debt. Why do you need a boat/new car every 3 years/all that jewelry/all those vacations?"

That usually shut people up quickly.

[seren77]

Originally Posted by totallyfrazzled

Yes it was an excellent buy and he definitely feels it was worth the wait and hassles of all those months of looking.

I know many people would think that a single person in their mid-20s doesn't "need" such a house, but my nephew has always been big on planning ahead. His logic is that by buying what most would look for in a 2nd-level house now, about 10 years before he plans to start a family, by the time he "needs" a house with 3 bedrooms, a living room, a family room, and a pool he not only will already have it but his mortgage will be at least 50% paid off. He plans to start paying down the mortgage as soon as his income allows him to make extra payments toward principal, so that it will end up being paid off in 15 years. Most people in their mid-30s who do need a family house are looking at a 30-year mortgage commitment for whatever they find, but he will not only already own the house he needs but have it anywhere from 50% to 75% paid off at the same age.

Even if he doesn't pay off the mortgage early, he'll be 45 years old and own a house he loves and that has everything he would need for his family free and clear. Not too many people of that age without piles of money can say that.

I basically did the same thing: Bought a house as a young single and took out a mortgage. In my case I also did make extra payments but I was also lucky enough to get in at the start of the housing boom on LI and so was able to sell my first (which was a starter) house for enough to buy a second larger house for cash and then in turn sell that for a third house. I too used to get questions like "Why do you need such a big house when you don't have kids?" -- as if the only justification for having more than 2 bedrooms or larger than 1200 square feet is that you're a parent. After a while my answers got a bit terse, such as "Because I wanted it and could afford to buy it without going into debt. Why do you need a boat/new car every 3 years/all that jewelry/all those vacations?"

That usually shut people up quickly.

I tend to disagree with the first part of his logic though. First of all, he assumes that he will keep this job no matter what. It is very likely that he will need to change the job, due to either bad or good luck. He is decreasing his options of searching for a better job nationwide or a replacement job in case of bad luck. I just don't see it is a good idea to lock yourself into something this big when you are young and need all the flexibility.

Second of all, he pays more than his share of burden on property taxes as he doesn't have a kid yet that uses the local school district. At a time where taxes can be in 10K range, why subsidize someone else's child when you don't need to?

Now for second part, I cannot say much. You want something and you can afford. Go and get it no problem with that. Just don't make it as if it is a financially sound advice or a good investment for someone else. It just didn't work for millions which put us in the current situation.

[Jrprofess]

Originally Posted by Crookhaven

Sound Beach/Rocky Point

Best value play in NE Brookhaven

Crooks

I can't believe I am doing this, but for your scenario, Crookhaven is actually....gulp....correct....there, I said it.

[AlexisT]

FWIW, Avalon is expensive for what you get--they capitalize on location and school district. Not many rentals in HHH, unless you get a house--and then you'll be paying even more.

[Crookhaven]

Originally Posted by Jrprofess

I can't believe I am doing this, but for your scenario, Crookhaven is actually....gulp....correct....there, I said it.

LMAO JrP!!!!!!!!!



Ya gotta admit Rocky Point/Sound Beach/Ridge is a damn good buy.

Crooks

[Crookhaven]

Originally Posted by Burb

Is this still the case? I know the village has been going through a refurb and the schools are on paper as good or better than RP, SB and Ridge. http://www.city-data.com/forum/1805859-post33.html

Of course these types rankings can be misleading. Any locals in PV around to comment?

Very misleading.
Ask a local parent with kids in Pat/Med HS.
You dont want to send your kid there.

Crooks