Should I Consider Buying? (real estate market, apartment, to rent)
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Right now I live in the suburbs north of NYC and have been thinking of moving to the city for a while. I am not sure if I should rent, buy or stay in the 'burbs. Here are my stats:
-I am in my late twenties (single) and have worked for the same company since graduating college nearly 5 years ago
-I have about $250k saved, with about $190k in non-retirement cash and investments
-I currently make about $125k a year, which has steadily increased through the recession from my starting comp of $85k.
Basically I am looking to either rent a Manhattan studio for about $1,800/month or buy a studio/junior 1br for $300k-$400k. If I buy I would be looking at Manhattan or Brooklyn (I've already looked at places so I know what I can get for my money). Maintenance seems to be running at $650 to $900 a month, with 50% tax deductible.
Based on my numbers and situation, do you think I can make it?
Why would you buy a studio? Buying a residence is usually has long-term impacts. What happens if you get married, have a child, or start living with a significant other? Do not assume you will be able to sell it easily if you need more space in a few years. I would highly suggest you rent if you want to live in a studio in Manhattan right now. If you are going to buy, get at least a 1 bedroom.
Well, I would consider a 1 br, but haven't seen anything that I like in the right caliber building & right location. I would be open to converting a large studio to a 1 br also.
Pushing my budget up to $450 would give me a decent 1br...do you think that's doable for me?
Well, I would consider a 1 br, but haven't seen anything that I like in the right caliber building & right location. I would be open to converting a large studio to a 1 br also.
Pushing my budget up to $450 would give me a decent 1br...do you think that's doable for me?
use the many mobile apps on trulia dot com, a site for buyer data. they might have a calculator-type app. i agree a 1br will be less headaches wen it's time to sell
Maybe you should rent something for $1800 a month for a few years. That way you can save more money and hopefully see your salary increase as well. At that point you can probably afford to pay more for the apartment. I do not think the real estate market is going to to see a huge increase in the next few years. Where in Manhattan can you buy a decent 1 bedroom for $450k?
Keep in mind that due to the high cost of buying in Manhattan compared to renting a similar apartment, you really need to keep the apartment for a while in order to make it worthwile. However I guess that if you have such a large down payment your monthly payment will be lower, so if you really had to you could find someone to rent it and still cover your expenses. A lot of people that buy in Manhattan would have negative cash flow if they rent out their apartment because their monthly payment is so high.
Where in Manhattan can you buy a decent 1 bedroom for $450k?
They can be found randomly throughout Manhattan and Brooklyn Heights. In Manhattan, I've seen some around 1st and 2nd ave in Midtown East, Kips Bay and UES. Some are true 1 bedrooms and some are converted studios. Of course, there is usually some type of trade-off like no doorman, distance to subway, etc.
Quote:
Originally Posted by newyorker24
Keep in mind that due to the high cost of buying in Manhattan compared to renting a similar apartment, you really need to keep the apartment for a while in order to make it worthwile. However I guess that if you have such a large down payment your monthly payment will be lower, so if you really had to you could find someone to rent it and still cover your expenses. A lot of people that buy in Manhattan would have negative cash flow if they rent out their apartment because their monthly payment is so high.
Many coops require a 20%-25% down payment so that helps keep the monthly payment down. Plus when you consider the tax benefits of the mortgage and maintenance, it seems to be pretty comparable. But I'd take a hit on commissions if I wanted to sell within the next few years for whatever reason. So that could make renting first a better option, until I decide on my long-term plans.
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