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Old 01-20-2010, 03:42 AM
 
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My husband and I will be moving soon to NY and have zeroed in on a smallish studio apartment on 230 Riverside Drive. We've only visited NYC once years ago so any advice on the neighborhood will be much-appreciated. Is it a safe neighborhood? Also, I believe it is a couple of blocks away from public transport. For both of us the walk is not a problem but will that be a major drawback for buyers if we choose to sell the apartment in the future. Also, what are the average rents for studio apartments in the area?
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Old 01-20-2010, 04:17 AM
 
Location: Beautiful Pelham Parkway,The Bronx
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It happens to be a good neighborhood but I am surprised that you would be buying at all when you seem so totally unfamiliar with the area. Not a good idea.
That particular building was bought by a developer for conversion to condominiums during the recent real estate boom so I would be particularly careful about the project's details like financing,condition of the building's infrastructure and the status of any long term tenants,etc.It could have trouble written all over it.
Nice neighborhood but there are other factors to consider.As an unfamiliar buyer you might want to consider some more established co op or condo buildings.

Last edited by bluedog2; 01-20-2010 at 04:26 AM..
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Old 01-20-2010, 05:34 AM
 
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You really need to SEE the apartment. NEVER buy one sight unseen. And do you have any idea how SMALL studio apartments are in the US? TWO of you want to live in a studio? The area is OK, but I would still NEVER even THINK of buying a studio for two people.
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Old 01-20-2010, 05:45 AM
 
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Thank you for the responses. Very very useful. Yes, you are right, we will definitely look at the apartment and its condition before we think of buying it. The reason we considered buying it is because we will probably only be in NYC for one and a half years for a time-bound job. We have been toying with the idea of investing in a studio for a while and we thought this may not be a bad investment since we can either rent it out or sell it at the time? But even before viewing it I did want to get opinions on this forum from people who are familiar with the area and the building.
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Old 01-20-2010, 05:47 AM
 
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Quote:
Originally Posted by naala View Post
Thank you for the responses. Very very useful. Yes, you are right, we will definitely look at the apartment and its condition before we think of buying it. The reason we considered buying it is because we will probably only be in NYC for one and a half years for a time-bound job. We have been toying with the idea of investing in a studio for a while and we thought this may not be a bad investment since we can either rent it out or sell it at the time? But even before viewing it I did want to get opinions on this forum from people who are familiar with the area and the building.
If it's a co-op, it's often not permitted to rent it out.
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Old 01-20-2010, 08:58 AM
 
Location: New York City
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Flipping (reselling) an apartment with such and short timeframe in this market is not a good idea. In 18 months you'd be lucky to recover your closing costs, taxes, fees, etc. You stand the risk of losing money (and that's if the market doesn't weaken further).
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Old 01-20-2010, 01:00 PM
 
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Thank you for your response. We are beginning to seriously rethink this on the basis of the advice. So it seems that as an investment it would make sense only in the long run, if at all? As I mentioned before the reason we are considering buying the studio at all is because we thought it might be a good investment eventually. If we were to rent it out in 18 months time, I wonder if that would even yield enough to meet the mortgage? What would a studio apartment rent for in this particular area?
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Old 01-20-2010, 01:51 PM
 
Location: New York City
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It's far cheaper to rent an apartment than pay a mortgage in NYC at the moment. Studios range from around $1,700 to $2,500+ or so (but the high-end places have lots of amenities). Compare this with a $450,000+ purchase price, and it's hard to come out ahead in the short term (unless you pay a large portion in cash). Also, don't forget to add in monthly maintenance and taxes.

Provided you can get a 30-year fixed mortgage at 6 percent, you're looking at around $3,000+ a month in costs. I don't think you could get that for a studio rental in that building.

Last edited by tpk-nyc; 01-20-2010 at 02:13 PM..
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Old 01-20-2010, 02:45 PM
 
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Originally Posted by naala View Post
If we were to rent it out in 18 months time, I wonder if that would even yield enough to meet the mortgage?
Did you see my response above? If it's a cooperative apartment, you will likely NOT be PERMITTED to rent it out. It's up to the board of the building and they're usually NOT happy to rent out apartments. Especially when the shareholder KNOWS he/she won't be there.
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Old 01-20-2010, 02:57 PM
 
Location: Beautiful Pelham Parkway,The Bronx
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Quote:
Originally Posted by tpk-nyc View Post
It's far cheaper to rent an apartment than pay a mortgage in NYC at the moment. Studios range from around $1,700 to $2,500+ or so (but the high-end places have lots of amenities). Compare this with a $450,000+ purchase price, and it's hard to come out ahead in the short term (unless you pay a large portion in cash). Also, don't forget to add in monthly maintenance and taxes.

Provided you can get a 30-year fixed mortgage at 6 percent, you're looking at around $3,000+ a month in costs. I don't think you could get that for a studio rental in that building.
While I agree with this in general,the figures are off. Don't know about this particular building but there are lots of studios in Manhattan that rent for well over $3,000/mo.Some buildings on Riverside Dr. with views of the park and the Hudson fall into this category.As I said,don't know about this building but Riverside Drive is one of the best addresses in NYC.
With good credit, one can find a loan at around 5%,maybe even high 4's.I refied a few months ago at 4.5%. These kinds of variables can make a big difference.
It's impossible to tell whether this is good time to buy or not.While things could deteriorate further, most signs are that the worst is definitely over and there are a lot of people buying now on the idea that it is a really good time to buy, so take your pick.Only time will tell.
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