The cost of owning a home.... not as much as I thought ?? (Islip: condos, co-op)

[amoret68]

Originally Posted by dman72

This is a really good point that needs to be brought up in the relation to the "rent vs. own" calculators that were listed..they presume that you are going to invest any money that you would have spent paying your mortgage and taxes, not buying new cars, TV's, and going on vacations. In that sense, buying a house forces you to spend money on something that isn't just flushing it down the toilet.

Now, if you are diligent and frugal enough to really put that extra $500 you would have spent on net property taxes and interest each month into an investment account generating a decent return, then the calculators are telling you the true story.

So true. I have a friend who bought in Tampa (relocated there for his wife's teaching job at the university). He is a responsible person who was doing very well by investing his money while he was renting. Now his wife's job is gone and they are underwater on the house.

Luckily, he works from home and makes enough money to cover the mortgage. Her career, however, is stalled. Even if she did find a job in East Podunk, MT, she would not be able to relocate.

[Crookhaven]

Originally Posted by amoret68

I'm not looking to buy now--the OP asked if I would buy my house again (answer: no). When we were looking to buy (back in 2001-2002), we considered a few houses in that price range in Rocky Point. Back then, 165-180K bought a decent, if small, 2-3 BR. By 2002-2003 (when we did buy, in Patchogue), similar houses were on the market for 250K...and you know the rest of the bubble sotry.

My point to her was that in hindsight, it would have been a better financial choice to have picked RP (even though I hate 347/25) in 2001 for $165K (or even $250K the following year) than to have bought in Patchogue.

I hate to come off seeming critical of Patchogue because I like my neighborhood (St. Joe's/Roe Area) and I prefer the the South Shore. Also, my elementary school is really nice (if you put aside the test scores--the only way that most people have to judge a school). But right now, in 2009, when there are 180 properties for sale in my zip code, I'm feeling a tad bitter and remorseful.

Agreed, even post bust those those 180k Rocky Point homes from 2001 are mid 3s/low 4s and up right now.

Keep in mind most of RP jumped 100% + between early 2001 and 2002. You couldve bought a decent starter for 100k back then.
We lucked out and got in right before the rocket left the pad.This town was seriously undervalued at the time.
People saw it for what it was (and is) and rushed in. Affordable north shore, sandwiched between upscale communities with good schools, breathtaking waterviews and low taxes.

Now I love the South Shore particularly up by Roe blvd (gorgeous), but Pat Med schools are a complete trainwreck right now.
I really, really hope they get it together because the Village of late has been an absolute home run and the Schools are really holding it back.
Pontieri has really worked miracles down there but at the end of the day its always all about the schools.
Hang tight , get involved, I think Patchogue could be the next Babylon Village.

Im very grateful to have bought when we did, and we were paying less in rent.
It helped us get our act together financially.We're living in our nest egg.


Crooks

[TVR1997]

Originally Posted by Jdawg8181

No, ownership isn't always higher...it depends what you buy. I own a tiny studio co-op and I pay $900/mo. Had I rented, it would probably be more $...even for a studio. Renting is such a rip-off.

In regards to headaches, when I rented (only for 3 months), it was more of a headache than owning has ever been. That's for me, it's different for others. I also own a co-op, so I have a super who takes care of those things for me...rather than a house, where responsibility falls on the owner.

I was thinking in a LI centric way (meaning owning a single family home vs. renting one) not so much a studio. IMO, you can't really compare owning/renting a co-op vs. owning and renting a home....

[Jdawg8181]

Originally Posted by TVR1997

I was thinking in a LI centric way (meaning owning a single family home vs. renting one) not so much a studio. IMO, you can't really compare owning/renting a co-op vs. owning and renting a home....

True...but a "home" and a "house" are 2 different things. My co-op is a "home" but it isn't a "house". I see your point though. I was just making an example that owning isn't always necessarily cheaper...only so if one is getting a "house."

[zulu400]

Originally Posted by Jdawg8181

Who knows for sure really? Point is, rent values will increase every year, my mortgage will not.

I think this point is irrelevant here. I am in the market to buy today so I have to decide based on today's factors. What you mentioned is a general rule which is true most of the time (not in the last 2-3 years though).

I was just making a comment about the fact that your studio with the monthly $900 payment (whatever that pays for) should not figure into my equations because I am probably living in a bigger apartment already and I will be looking at a house/condo/co-op/whatever-else-you-want-to-call which is bigger than my apartment. In such case I feel that on Long Island "as of today" it should most definitely cost more to own the place than to rent. I'm sure probably after one reaches the break even point (its called that for a reason), its cheaper to own, but as a person who is buying the house, I have to compare the costs as of today.

[zulu400]

Originally Posted by Crookhaven

Im a proponent of ownership, I think it leads to greater fiscal discipline.

Originally Posted by dman72

This is a really good point that needs to be brought up in the relation to the "rent vs. own" calculators that were listed..they presume that you are going to invest any money that you would have spent paying your mortgage and taxes, not buying new cars, TV's, and going on vacations. In that sense, buying a house forces you to spend money on something that isn't just flushing it down the toilet.

Now, if you are diligent and frugal enough to really put that extra $500 you would have spent on net property taxes and interest each month into an investment account generating a decent return, then the calculators are telling you the true story.

Bingo.... both of you guys are so right.... its just easy to assume the return on investment on the calculators.... it should come with a * next to it !! (you cannot have it unless you invest it)

Tell the guy who squanders the extra money that the calculator figures changed right when you drove the car out of the dealership or when they swiped the card on the 50 inch LCD TV....

[grant516]

Originally Posted by Jdawg8181

What about 1brs or studios? I don't live in a 2br apartment. Is it the same trend throughout?

Where do such places even exist in Nassau?

[Jdawg8181]

Originally Posted by grant516

Where do such places even exist in Nassau?

There are a lot of 1brs & studios in Nassau. Just look on MLS. I think you can filter it out by condo/co-op as well as # of bedrooms.

[TeamExit]

this is why i bought, because it dont cost much more than renting something nice.

heres my breakdown of what i am paying... i bought in jan. 09

roughly $220k loan @5%
principle, interest, MI, homeowners ins., property taxes: $1900
lipa bill: roughly $80 when not using a/c, roughly $150 when using it
gas bill: $40 without using heat, $130 when using heat
water bill: like $30 every 3 months
cable/internet/phone: $150

now yes i have a small home so the price and utilities are costing me less than "average", but it goes to show u what u really CAN have on LI. dont believe anyone that tells u that u CANT get into a house and have all your bills paid for under $3500 a month. i dont make a ton of money, but the house is MINE, i have SOME nice things, house is in pretty decent condition, and have no other debt thanks to obama's housing bill. the house and property is small, but its more than u would have if u were renting an apartment.

plus instead of getting a maybe $1800 tax return like i did the last 2 years (not counting the $8000 credit), this year im going to be writing off probably like $20k because of the house, and hopefully at least double my tax return.

[zulu400]

Originally Posted by Jdawg8181

There are a lot of 1brs & studios in Nassau. Just look on MLS. I think you can filter it out by condo/co-op as well as # of bedrooms.

Hey,
I looked up some of the co-ops in Nassau, they seem nice, but some of them seem to have maintenance charge listed around $800 bucks.... is that per month or annual ?
I'm guessing that your co-op does not charge that ? If they do, then do you get a tax benefit for that ? and how much is it per month for the mortgage + the maintenance charge ?