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For starters, common charges for condos are almost always much lower than maintenance fees in the co-ops. To have $2k in common charges for a condo, its probably worth $3 million + in super luxury building with lots of amenities. A typical $500k-1 million dollar condo would have common charges between $300-800 per month. This is vastly different from co-op maintenance. Also, your mortgage numbers are way off.
1 bed coops don't start at $800K.
Mortgage is wrong.
Common charges are high, unless you're in very specific areas.
This forum is ridiculous. You have people that think Bill Gates can only afford a mediocre 1 bedroom and Warren Buffet would be living in a studio eating ramen every night.
The OP should be saving his money and looking for modest spaces that maybe need a bit of work and aren't located in marquee neighborhoods such as Tribeca. Start of modestly and then trade upward.
Lot of wealthy Russian and Chinese and Japanese and well as European and South American billionaires and millionaires buy real estate in cash and that drives up the price. Manhattan real estate prices I agree are ridiculously over priced but rich people see it as an investment opportunity.
Lot of wealthy Russian and Chinese and Japanese and well as European and South American billionaires and millionaires buy real estate in cash and that drives up the price. Manhattan real estate prices I agree are ridiculously over priced but rich people see it as an investment opportunity.
It is also a means to shelter money, hence the preference for top-tier buildings that really operate in another sphere from other buildings in the city. It's not so much as they are counting on rapid appreciation, but not rapid deflation in value, should the funds need to be recovered for any reason.
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I would also like to add that, for average working people, it is also about having flexibility in terms of where to buy. There are affordable apartments across the city like uptown or some parts of Brooklyn but, if you want the nicest areas, then you will have to pay for it.
Back in the days, people who bought in Chelsea or Meatpacking when it was still not the best neighborhoods are now living in apartments where the value has significantly increased because the neighborhood has improved.
Today, people buy in places like Harlem or Bushwick -- which is not the nicest to most standards -- but still quite affordable. In a few years, value will likely go up and the question will once again be: how do people buy real estate in these areas?
Take, as an example, the $500 blouse at Barney's. If you can't afford it, then you shop somewhere else cheaper. You still get clothing but it is just not as nice as the blouse at Barney's.
Buy a borough duplex or triplex. Live in the smallest unit, rent out the better unit(s). Be the resident super.
Understand and know market rental rates in the neighborhood, because the bank will determine by "comparable" rental units in same neighborhood whether what you intend to charge as rent is realistic, before they'll give you a mortgage to buy the entire townhouse or detached house.
Don't quit your day job, either, because the banks don't really like to count the rent roll as income. The bank wants to be sure you can squeak out a monthly mortgage payment from your job income alone, whenever the apartments have to sit vacant for a little while.
Problem is, you need more start-up money for the initial downpayment and closing costs to buy a $700K+ multi-unit than an 300K+ apartment. Over time, though, it's good to have some money coming in from a property you own and live in.
Last edited by BrightRabbit; 07-15-2015 at 10:21 PM..
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