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Hi City-Data. Long time lurker, first time poster. I work for a Government Agency in NYC and have been in the same field for ~15 years. Post-Grad (Two Masters Degrees) Stable job, close to six figure salary (will hit that mark soon), working towards a promotion, never married, no kids.
I've noticed in conversation with some of my co-workers and people in my social circle that many of them have bought homes throughout the five boroughs with down payments way below the recommended 20%. For example, one of my colleagues purchased a multi-family home in the Tremont area of the Bronx with $55K down (he claims the home was $425K). Another in Woodhaven, Queens (SFH) for $35K down ($650K home), and another in South Ozone Park (SFH) for $24K down ($425K home).
Some of them have mentioned taking advantage of FHA and other methods (which they didn't discuss) and are telling me to get into the market now. I have close to $90K saved, but feel like I need to get over that $100K mark before I consider making any moves as I know 20% is that magic number. Most of the homes I'm interested in are in the $450-$600K range. I'm looking to stay in my native Queens, most likely in the Queens Village/Cambria Heights section (frequent LIRR service for shorter travel times to Manhattan and Brooklyn (gotta love that City Ticket!), not far from the train, highways, etc). Though I've looked at Woodhaven, Oakland Gardens and Kew Gardens, realistically, I doubt I could afford a single family home or multifamily in those areas. (Alternatively, White Plains looks amazing for the money, but... taxes!!).
Forgive my rambling. Looking through Zillow, I see an unbelievable amount of foreclosures through Queens in all areas and I'm betting a lot of it has to do with people putting less than 20% down and not being able to keep up. When I was in Grad School, a lot of my peers would talk about getting a multifamily in order to have passive income and that being the only way to achieve real wealth (property/future inheritance) in NYC.
I am financially responsible, have good credit (on track to having amazing credit) and though the economy is rebounding, I'm always thinking about the worst possible scenarios (i.e. losing a job, market crashes).
How many of you have bought homes, condos or co-ops for less than 20%. Any advice for a guy in his mid 30s?
You are smart enough to know the math does not add up. Years ago saving the old fashioned way eventually led to home ownership.
Gosh I remember buying a home with 1/2 purchase price down and mortgage lender refused me until I paid off a $15 dollar traffic ticket.
Today is a different world. Many of these folks are buying and flipping immediately as their way of building equity. Buy a home with little
down for $ 500,000 throw a paint job and quickly put it back on the market for $800,000. Rinse and repeat .After a few times you buy your
house cash. These low lives are making it miserable for the hard working stiff. The home that was once in reach is now forever out of reach.
Also,there are foreign investors dumping tons of money into New York ( America ) as the real estate market here has become the Swiss bank
account for some very bad people who are purchasing in total anonymity. They will pay anything just to hide their money. This drives property
prices up. The negative side is those who get jammed up ( no buyers on the flip ) end up losing their homes and the cycle repeats. Not everybody flipping makes out. Herein the problem. What to do ? You can take the" if I can't beat em join them" attitude or you can slowly save your money and
hope that the bottom will fall out of the real estate market or at least stabilize. The ordinary honest working guy is going to have nothing but an uphill struggle to own a home. Will you own a home one day saving the old fashioned way? I believe so. This is your only choice of purchasing guilt free.
The other choice is to be basically a bad guy as mentioned. You screw the future generation of home buyers.The choice is yours.Go to bed guilt free
or go to bed guilty.I have been around long enough, Watched people play this game. Morals are learned at a young age. No morals, no conscience.
Karma, Karma ,Karma. Glad I did it the old fashioned way as many others have. Don't get conned into the flip game or LLC co owner game.Many folks do it the old fashioned and honest way.I pray you can to. I have no regrets. May God Bless you in your home purchase. Peace.
Hi City-Data. Long time lurker, first time poster. I work for a Government Agency in NYC and have been in the same field for ~15 years. Post-Grad (Two Masters Degrees) Stable job, close to six figure salary (will hit that mark soon), working towards a promotion, never married, no kids.
I've noticed in conversation with some of my co-workers and people in my social circle that many of them have bought homes throughout the five boroughs with down payments way below the recommended 20%. For example, one of my colleagues purchased a multi-family home in the Tremont area of the Bronx with $55K down (he claims the home was $425K). Another in Woodhaven, Queens (SFH) for $35K down ($650K home), and another in South Ozone Park (SFH) for $24K down ($425K home).
Some of them have mentioned taking advantage of FHA and other methods (which they didn't discuss) and are telling me to get into the market now. I have close to $90K saved, but feel like I need to get over that $100K mark before I consider making any moves as I know 20% is that magic number. Most of the homes I'm interested in are in the $450-$600K range. I'm looking to stay in my native Queens, most likely in the Queens Village/Cambria Heights section (frequent LIRR service for shorter travel times to Manhattan and Brooklyn (gotta love that City Ticket!), not far from the train, highways, etc). Though I've looked at Woodhaven, Oakland Gardens and Kew Gardens, realistically, I doubt I could afford a single family home or multifamily in those areas. (Alternatively, White Plains looks amazing for the money, but... taxes!!).
Forgive my rambling. Looking through Zillow, I see an unbelievable amount of foreclosures through Queens in all areas and I'm betting a lot of it has to do with people putting less than 20% down and not being able to keep up. When I was in Grad School, a lot of my peers would talk about getting a multifamily in order to have passive income and that being the only way to achieve real wealth (property/future inheritance) in NYC.
I am financially responsible, have good credit (on track to having amazing credit) and though the economy is rebounding, I'm always thinking about the worst possible scenarios (i.e. losing a job, market crashes).
How many of you have bought homes, condos or co-ops for less than 20%. Any advice for a guy in his mid 30s?
You have read my other post by now. It took me 10 years to purchase my first home with half down. You can do it in 5 years. If you are handy it is probably the best asset outside your 6 figure job. You can purchase a lower priced home that needs updating ( not a tear down ) and save quite a few bucks. Purchase the home in the winter time usually gets you a better buy. I would consider at least a 2 family if affordable. Rental income offsets mortgage and great during when money is tight. A single will do just as well at a lower price. My first purchase was a large multifamily. I was single. I was busy around the clock. I repaired everything. Saved lots of money not contracting out. Paid off house in 15 years. Rule of thumb. 15 year mortgage: for every dollar you borrow you pay back $1.50 .....For a 30 year mortgage: for every dollar you borrow you pay back $4 bucks. Big difference. Once paid off you can do what ever your heart desires. God Bless and Good Luck.
You have read my other post by now. It took me 10 years to purchase my first home with half down. You can do it in 5 years. If you are handy it is probably the best asset outside your 6 figure job. You can purchase a lower priced home that needs updating ( not a tear down ) and save quite a few bucks. Purchase the home in the winter time usually gets you a better buy. I would consider at least a 2 family if affordable. Rental income offsets mortgage and great during when money is tight. A single will do just as well at a lower price. My first purchase was a large multifamily. I was single. I was busy around the clock. I repaired everything. Saved lots of money not contracting out. Paid off house in 15 years. Rule of thumb. 15 year mortgage: for every dollar you borrow you pay back $1.50 .....For a 30 year mortgage: for every dollar you borrow you pay back $4 bucks. Big difference. Once paid off you can do what ever your heart desires. God Bless and Good Luck.
Well done. I couldn't have said it better myself. It took me about as long to accumulate the down payment. Now that I'm fully paid off, I'm looking towards another purchase....for far less and out of NYC.
Well done. I couldn't have said it better myself. It took me about as long to accumulate the down payment. Now that I'm fully paid off, I'm looking towards another purchase....for far less and out of NYC.
You are smart enough to know the math does not add up. Years ago saving the old fashioned way eventually led to home ownership.
Gosh I remember buying a home with 1/2 purchase price down and mortgage lender refused me until I paid off a $15 dollar traffic ticket.
Today is a different world. Many of these folks are buying and flipping immediately as their way of building equity. Buy a home with little
down for $ 500,000 throw a paint job and quickly put it back on the market for $800,000. Rinse and repeat .After a few times you buy your
house cash. These low lives are making it miserable for the hard working stiff. The home that was once in reach is now forever out of reach.
Also,there are foreign investors dumping tons of money into New York ( America ) as the real estate market here has become the Swiss bank
account for some very bad people who are purchasing in total anonymity. They will pay anything just to hide their money. This drives property
prices up. The negative side is those who get jammed up ( no buyers on the flip ) end up losing their homes and the cycle repeats. Not everybody flipping makes out. Herein the problem. What to do ? You can take the" if I can't beat em join them" attitude or you can slowly save your money and
hope that the bottom will fall out of the real estate market or at least stabilize. The ordinary honest working guy is going to have nothing but an uphill struggle to own a home. Will you own a home one day saving the old fashioned way? I believe so. This is your only choice of purchasing guilt free.
The other choice is to be basically a bad guy as mentioned. You screw the future generation of home buyers.The choice is yours.Go to bed guilt free
or go to bed guilty.I have been around long enough, Watched people play this game. Morals are learned at a young age. No morals, no conscience.
Karma, Karma ,Karma. Glad I did it the old fashioned way as many others have. Don't get conned into the flip game or LLC co owner game.Many folks do it the old fashioned and honest way.I pray you can to. I have no regrets. May God Bless you in your home purchase. Peace.
Thanks for this. 20% is doable now with little savings leftover after closing (though 500K can't get much of a home anymore). I can get to 30% if I continue work hard. No way I could see myself putting down 50% on my own in this market. Even a promotion in my field would turn my snail's pace into a turtle walk (not much faster) but I am remaining disciplined and refraining from any unnecessary purchases.
Some houses are dropping in value in Queens, but not by much. Crazy how these homes that were $350K just four years ago are almost 70% - Double in value now!
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