Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm considering options for my first real estate purchase. I've been reading this forum for years, so I figured I'd ask for advice from those with some experience.
I'm cross-shopping co-ops in Queens with condos in Union City, West New York, Guttenberg, and the surrounding areas. These are approximate averages of what I'm finding as far as prices (inclusive of tax, maintenance, insurance, etc.):
- Co-op studio (Queens) ~ $1100/month
- Co-op 1 bed (Queens) ~ $1300-1400/month
- Condo studio (Jersey) ~ $1200-1400/month
- Condo 1-2 bed (Jersey) ~ $1500-2000/month
I'm not planning on staying at either location for more than a few years. The co-ops look attractive because I would have more money left to put away in savings every month. On the other hand, I feel like I have more flexibility with a condo when it comes to reselling. What would be the better investment? I'm not necessarily looking to profit, just talking in terms of minimizing losses over the 2-3 year period I'm planning to live there.
I would say go for the condo because is easier for you to resell. Coop sometime depends on the board, you might never even able to sell when you have a willing and ready buyer. So, in your case, I would suggest to buy condo instead of coop.
Why buy at all if you only intend to live only 2-3 years? You will probably lose money buying and selling in such short time.
Second this especially when we seem to be at all time highs for real estate in many areas in and around NYC. Unless those properties appreciate another 3-4% per year chances are you'll lose money just paying the broker commission. In this market you should only buy if the investment cashflows make sense or plan on staying long term or have some strange infatuation that transplants have with NYC.
Why buy at all if you only intend to live only 2-3 years? You will probably lose money buying and selling in such short time.
True, I've considered that. I'm wondering if there's a way that I can spend less overall, in comparison to renting - meaning taxes, HOA/maintenance, insurance, closing costs on purchase/sale, etc. all add up to be less than 3 years worth of rent.
Rent seems to be steadily increasing as well. I wouldn't be opposed to moving after a few years and renting out the unit, then maybe selling when the market conditions are right.
Just looking to hear from people with practical experience.
On the Jersey side, I'm seeing a few units in the low and mid 200's. The price history shows that some of these sold for over 300k back in 2007-2009. I'm wondering if the price dropped due to the real estate bubble burst, or if it has more to do with rising taxes and disappearing abatements?
I'm considering options for my first real estate purchase. I've been reading this forum for years, so I figured I'd ask for advice from those with some experience.
I'm cross-shopping co-ops in Queens with condos in Union City, West New York, Guttenberg, and the surrounding areas. These are approximate averages of what I'm finding as far as prices (inclusive of tax, maintenance, insurance, etc.):
- Co-op studio (Queens) ~ $1100/month
- Co-op 1 bed (Queens) ~ $1300-1400/month
- Condo studio (Jersey) ~ $1200-1400/month
- Condo 1-2 bed (Jersey) ~ $1500-2000/month
I'm not planning on staying at either location for more than a few years. The co-ops look attractive because I would have more money left to put away in savings every month. On the other hand, I feel like I have more flexibility with a condo when it comes to reselling. What would be the better investment? I'm not necessarily looking to profit, just talking in terms of minimizing losses over the 2-3 year period I'm planning to live there.
Any input is appreciated.
I would not buy if I was only intending to stay in a place for two to three years---UNLESS I thought of it as more like an investment/flip.
I did buy my coop with the idea that I might not stay here very long---but, I did buy something that needed work. I knew the neighborhood I bought in VERY well so I knew with a little bit of work I would sell at a profit. I would not do that randomly looking into neighborhoods I am not very familiar with, which sounds like your situation. I watched the market in this area for a year or two before I bought and I still watch the market since I made the purchase.
How much would you be ahead monthly mortgage+maintenance vs. rent? And this is after taking into account upfront costs (lawyer, application fees) and the eventual costs for selling (realtor, more fees, possible flip tax, etc.) As you have seen, some places have had price drops (will they continue?) and others may not appreciate at all.
Like anything else, there is always a bit of risk. Many people will buy something regardless of whether or not they come out ahead, which I think is a good way to approach it. There is a member of the forum who is well-versed in real estate so hopefully he'll pop in here at some point.
I would not buy if I was only intending to stay in a place for two to three years---UNLESS I thought of it as more like an investment/flip.
I did buy my coop with the idea that I might not stay here very long---but, I did buy something that needed work. I knew the neighborhood I bought in VERY well so I knew with a little bit of work I would sell at a profit. I would not do that randomly looking into neighborhoods I am not very familiar with, which sounds like your situation. I watched the market in this area for a year or two before I bought and I still watch the market since I made the purchase.
How much would you be ahead monthly mortgage+maintenance vs. rent? And this is after taking into account upfront costs (lawyer, application fees) and the eventual costs for selling (realtor, more fees, possible flip tax, etc.) As you have seen, some places have had price drops (will they continue?) and others may not appreciate at all.
Like anything else, there is always a bit of risk. Many people will buy something regardless of whether or not they come out ahead, which I think is a good way to approach it. There is a member of the forum who is well-versed in real estate so hopefully he'll pop in here at some point.
Sounds like good advice. I'm definitely looking at units that need work. I wouldn't mind saving some money upfront and putting it toward renovations.
I hear you, but for the time being I'm priced out of the 5 boroughs (when it comes to condos). Even places like Bushwick, which had reasonable deals 5-6 years ago, blew up. You'd be hard-pressed finding a decent studio under 300k.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.