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I would like to buy a place eventually but I don't agree that the premise buying is better than renting is a "no-brainer"...especially when OP is paying $1000 in rent. Highly doubtful you can get a mortgage and maintenance for less than that.
It is not ripping up money as you are giving money in exchange for shelter.
I do agree that eventually buyer is better. But you have to look long term. If you plan on staying 6-7 years, sure buy. Also, OP has $10,000 for a downpayment, that is not enough. My advice is that if you really want to buy...wait until you saved 20%
....I'm in my late 20s, married and was also thinking about buying a coop in the low $200K range. But as of now, I think I'm going to rent instead. I don't want to make it a rent vs buy thread but you have very affordable rent right now. Why do you want to buy a coop and spend alot more? Is it because you think it will appreciate? Is it because you want a place you renovate (though coops are strict with that)? .....
Maybe the $8,000 credit for buying in 2009 that would cover all the closing costs on a $200,000 apartment and still leave another $5,000?Expires at the end of the year.
Maybe the 4.5 % fixed interest rates that makes the payments on a $180,000 loan about $800.00/month ?Probably will never be lower in your lifetime.
Maybe because in most of The Bronx you can find apartments at this price that have already been renovated with all new kitchens and baths ?
Maybe because coops tend to be much quieter and much better maintained than rental buildings ,giving you a better quality of life ?
I would like to buy a place eventually but I don't agree that the premise buying is better than renting is a "no-brainer"...especially when OP is paying $1000 in rent. Highly doubtful you can get a mortgage and maintenance for less than that.
It is not ripping up money as you are giving money in exchange for shelter.
I do agree that eventually buyer is better. But you have to look long term. If you plan on staying 6-7 years, sure buy. Also, OP has $10,000 for a downpayment, that is not enough. My advice is that if you really want to buy...wait until you saved 20%
Outside of NYC you certainly can!
I pay $600/mo on LI. My friend in Bayside pays $900/mo. We both own.
Maybe the $8,000 credit for buying in 2009 that would cover all the closing costs on a $200,000 apartment and still leave another $5,000?
Maybe the 4.5 % fixed interest rates that makes the payments on a $180,000 loan about $800.00/month ?
Maybe because in most of The Bronx you can find apartments at this price that have already been renovated with all new kitchens and baths ?
Maybe because coops tend to be much quieter and much better maintained than rental buildings giving you a better quality of life ?
Bingo! (although, I don't think you can, in essence, use the $8k credit for your closing costs b/c you would receive it after tax season in 2010- after you have closed).
Sorry to contribute to the "off-topicness" of the last few posts, but I want to clarify the details on the $8k home purchase tax incentive. To claim this tax credit, you must CLOSE ON the home purchase by November 30, 2009, you must be a first-time home buyer (which means, in reality, that you haven't owned a home in the past three years), and to claim the entire $8k your income must fall within stated limits. Also, if you OWE taxes, you'll only be eligible to receive the difference between $8k and what you owe. You possibly CAN get the money this year, if you file an amended tax return. Finally, some banks are offering loan of up to $8k that you can use towards your down payment, which are to be repaid when you file for the credit.
If you have questions about the tax credit, I'd suggest that you check out the Mortgages forum here at City-Data.
wait a year and watch the real estate market crash here. If its still too expensive, then honestly consider moving out of the city.
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