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Old 05-14-2015, 02:40 PM
 
1 posts, read 689 times
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Hi all -

Any tips for buying a first place in NYC? I am 30, make about 100k, pay 2k rent a month and live in Manhattan.

The trouble is the downpayment obviously - I am only about 25k liquid that I would be able to put down.

I've read about FHA loans but am trying not to pay PMI.

Also I can afford the rent on most apartments but the maintenance is ridiculous.

Any tips?
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Old 05-14-2015, 02:51 PM
 
499 posts, read 367,520 times
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Quote:
Originally Posted by Johnboy_NYC View Post
Hi all -

Any tips for buying a first place in NYC? I am 30, make about 100k, pay 2k rent a month and live in Manhattan.

The trouble is the downpayment obviously - I am only about 25k liquid that I would be able to put down.

I've read about FHA loans but am trying not to pay PMI.

Also I can afford the rent on most apartments but the maintenance is ridiculous.

Any tips?
Houses in NYC are very expensive unless you go far from transportation or to undesirable neighborhoods.

As for apt's, most apt's are co-ops in NYC, condos are very expensive. Your best bet is probably Queens for safety and transportation options... best value.

Forest Hills, Jackson Heights, Sunnyside are three very solid areas.

Maintenance seems to be higher in FH, but you can find apt's with low maint if you don't need a doorman/gym...etc. I pay $600 maint for a 2 bed in JH.
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Old 05-14-2015, 05:09 PM
 
8,218 posts, read 8,504,500 times
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I suppose that the advice would be to start saving up your money, and meanwhile start looking at places and reading up to educate yourself.
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Old 05-14-2015, 07:50 PM
 
Location: Brooklyn, NY (Crown Heights/Weeksville)
996 posts, read 944,451 times
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Others here can help you crunch this math, but we were able to buy a place in Brooklyn by purchasing a 3-unit walkup tenement, attached as a row house to others. We bought something recently built, so there were's no historical charm but also no renovations or surprises (old plumbing, bad wiring etc) hidden in the old old walls. Our neighborhood is rough but likely to improve within 15 years or so; meanwhile, we find it manageable to live here because we located where public transpo into Manhattan is fast and convenient.

There are 2 and 3 unit "townhouses" all over Queens and Brooklyn; I don't know the other boroughs as well. Manhattan was out of our reach.

Problem is, the downpayment on a multi-unit is more, since the building price is more-- obviously. But then you'll have the rent as income to help you meet the monthly mortgage. Get an honest evaluation of what you can ask for market value rent on the apartment, and don't let a realtor make up a number just to sell you the house. Get good comparable rates on same-size, same-condition apartments in that immediate neighborhood.

Since you'd also live right there, you can serve as your own building Super, keeping a good eye on the property. It's not easy to become a landlord, but like everything, you can read and talk to people with experience. As a property owner of a small multi-unit house, there are no coop boards or rising maintenance fees to contend with. Instead of maint fees, you pay for your own repairs as things come up, which they do. You buy a snowshovel, manage trash for your building, etc.

We bought an empty building, then found tenants with help of a professional broker, though other small landlords are more DIY in that task.

We did it after a long lifetime of owning, and finally selling, single-family homes outside of NYC and far upstate, where homes are priced much lower than around here. We had to move around a lot for work, so bought and sold again every 8 years, ugh. We therefore didn't accumulate much equity on our house, so it was tight.

I'm not sure if, at age 30, buying a 2- or 3-unit property is a good idea for a very first NYC purchase, but it has the advantage of putting you in charge of your situation.

The downpayment's the biggest obstacle, I think. Is there anyone in your extended family who might help you by gift with the downpayment? Can you exchange something, for example, offer to host them in your apartment whenever they'd want to visit NYC in the coming years? Banks don't want to see you borrow for a downpayment, but barter understandings within a family are your own business, I believe.

Last edited by BrightRabbit; 05-14-2015 at 08:32 PM..
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Old 05-14-2015, 08:56 PM
 
1,978 posts, read 1,237,268 times
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I would continue to save and find my significant other to settle down with before buying a property. With $25K and a single household earnings you won't be able to find many opportunities to purchase in NYC. Your best option will most likely be an apartment within a co-op that offers flexible renting rules, but co-op are known to have tough rules when it comes to post closing liquidity and you will most likely be broke and living paycheck to paycheck after buying the property (most likely need to find a roommate to share the expenses).

You will most likely need to take out a FHA loan and you will get a really bad interest rate.

Last edited by NYer23; 05-14-2015 at 09:06 PM..
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Old 05-14-2015, 10:50 PM
 
1,978 posts, read 1,237,268 times
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Quote:
Originally Posted by BrightRabbit View Post
The downpayment's the biggest obstacle, I think. Is there anyone in your extended family who might help you by gift with the downpayment? Can you exchange something, for example, offer to host them in your apartment whenever they'd want to visit NYC in the coming years? Banks don't want to see you borrow for a downpayment, but barter understandings within a family are your own business, I believe.
i would think most multi-family townhouse in good condition and not in a high crime area are $800K+. The closing cost alone will be close to $25k. In addition the OP will need a significant down payment as the loan amount is over the FHA loan limit in NYC. You will need 20-25% down payment for the bank to feel comfortable with lending you the rest in a jumbo loan. OP would need rich parents with disposable income to provide them with the down payment for such a property.
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Old 05-14-2015, 11:16 PM
 
Location: NYC
11,828 posts, read 7,704,170 times
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Good luck on saving, at your current salary it will be 15 years before you can save enough to pay down a 20%

Say a $600k property, 20% down that's $120k right now in hard cash. Most people buying houses in NYC are those with a lot of cash or those flippers that have the liquidity.

If you don't have $100k in the bank don't bother buying in NYC right now, go somewhere else.
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Old 05-15-2015, 06:37 AM
 
1,774 posts, read 1,415,488 times
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Quote:
Originally Posted by vision33r View Post
Good luck on saving, at your current salary it will be 15 years before you can save enough to pay down a 20%

Say a $600k property, 20% down that's $120k right now in hard cash. Most people buying houses in NYC are those with a lot of cash or those flippers that have the liquidity.

If you don't have $100k in the bank don't bother buying in NYC right now, go somewhere else.
Well if OP cuts down on his/her expenses to say renting a room in the boros, cut down to one modest vacation per year with short day trips in between. Shop at the outlets, or at most buy sale items at a store like banana republic. I believe that a single person can save 30k plus a year on a 100k salary. It all boils down to decipline. In 5 years that's 150k saved. The issue with most people is that they want to have the cake and eat it too. And when its time to start a family they realize that at 30yrs old they don't even have 200k+ saved with dual 6 figure salaries then it's time to move out of the city if they want to live in a nice house with good schools.
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