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While that some kind of piece of mayor is shoveling out tax money for "low income/affordable" rental housing homeowners in the city are being squeezed.
A new report out by the Furman Center shows that for many things are pretty tight.
"Overall, the burden on homeowners is close to that on renters in New York City, for both market-rate and rent-regulated apartments.
The study, funded by the community-development arm of Citigroup Inc., C -0.11 % also sheds light on the shortage of affordable homes for purchase at a time when Mayor Bill de Blasio’s housing initiatives are more focused on building and preserving low-cost rental housing."
An interesting item from the study shows that about half of NYC households with mortgages are paying thirty percent or more of their income towards housing costs. That makes them just about as burdened as some renters in the city.
Yeah it might have a similar burden as renting, but once your mortgage is up, you don't have to pay anymore and you have an asset with generally appreciates in value.
But many people in NYC do pay less for their house even with the mortgage than most renters.
While property tax rates haven't risen assessed values have, which is killing many low to moderate income NYC homeowners. This probably is true as waves of gentrification turn formerly low income areas around.
At least for some of the older folks covered in that article they still have mortgages well into retirement. This tells me they purchased later in life and took out a 30 year mortgage. The one lady mentioned who is having problems even after a mortgage modification scheme in particular is worrying. How did she end up with a housing note that is taking up almost half (IIRC) of her monthly income.
For everyone else, suppose you can find a "cheap" house in some parts of SI, Queens or the Bronx; that is something <$300K. But it probably won't be in a great area to raise a family especially the schools. Know parts of Mariners Harbor where you diffidently can find a home like that; you'll likely be dodging bullets, need an ADT system and tons of locks, but hey, you'll own your own home.
Think a large problem for many in NYC looking to buy is lack of a down payment, very high debt to income ratios, and not great credit.
Even for a 250K property you need 50K to put down unless you go with a higher rate mortgage, and you might not even be able to even then if your credit isn't good.
Looking at the demographic breakdown by borough it won't be long I think before the usual suspects start making noise. When you see 72% of whites on SI own their own home, you know that is going to cause some to start pointing fingers about "equality".
This year did not use AC until the heat wave.Didnt use much gas this winter, as it was pretty mild. Am I alone in that ?
Those costs aren't what is hitting many NYC homeowners. Property taxes, sewer and water rates, high cost of a home from the start (which means high debt unless you are paying cash, have good to excellent credit....).
The median income for NYC is about $55K. You aren't going to find much on the housing market to buy (or rent for that matter) on that kind of money.
At least for some of the older folks covered in that article they still have mortgages well into retirement. This tells me they purchased later in life and took out a 30 year mortgage. The one lady mentioned who is having problems even after a mortgage modification scheme in particular is worrying. How did she end up with a housing note that is taking up almost half (IIRC) of her monthly income.
My mom worked as a secretary for a government agency she only made around $25-30K a year. She was able to buy a small apartment through family gifting her the money for the down payment. When life happens and she needed money, she refinanced her mortgage and extended the life of the mortgage in exchange for smaller monthly payments. Now that she is retired she lives on social security, pension, and medicare. To be honest, I don't expect my mother to ever finish paying the mortgage but it beats having a landlord. For my mother one of her biggest source of pride is she was able to provide a stable environment for me to study, go to college, and climb the economic ladder.
Why should having a landlord stop anyone from providing for their children a stable environment, college education and upward mobility?
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