putnum county good investment or bad idea? (New York, Newburgh: real estate, apartments)

[house-hunter]

I'm looking to buy something in the putnum area that I could fix up, expand and earn sweat equity... Is this county a good investment? if so what areas would you reccomend? which would you stay away from? I would love a full acre with a mountain view but I'm being realistic. I really don't want to spend more than 300K purchase price, any suggestions? thanks

[mathjak107]

i dont live in putnam but from what i can see taxes are very very high and going higher.

i think you would really have to find a delapadated shack to find much in the 300,000 range.

[house-hunter]

that is simply not the case anymore... market has taken a turn and although still expensive its getting better. but thanks for the opinion. you are however right about the taxes.

[winnie]

The problem is you are looking to flip in an area that is losing value right now. How do you know HOW MUCH value it is going to lose from the time you buy? And if you will be able to sell in time before your taxes and stuff take a big bite out of your profit??

[house-hunter]

Originally Posted by winnie

The problem is you are looking to flip in an area that is losing value right now. How do you know HOW MUCH value it is going to lose from the time you buy? And if you will be able to sell in time before your taxes and stuff take a big bite out of your profit??

So, you are concuring that the area is loosing value? If so I agree. As for fliping... actually no. I'm not looking to do that. Not that fliping is a bad thing and if it so happens that I get in over my head and that is the only way out than yes I will, but my goal is to build/renovate a home for me an my family to live in. I personally have been activly looking in the market now for about two years but refuse to buy if something is overpriced. Partly because of the high cost of construction.

for those folks looking to flip... That time is gone and marked its end at the last part of 2005. however there may be some opportunities out there still as there always is in a down market but you better do your homework. the upps of 98 to 05 are over for some time to come... probably the next 10 or so years before you see real estate on the up again.

just my 02.

[winnie]

Look further up the river where property value was a bit less blown out of proportion. I have seen some areas take a serious hit in value this last year..

If I had to rennovate an older house, looking to build equity and have a nice place for my family I would pick Walden NY. Up and coming, has turned itself around nicely as far as image, and there are tons of older houses to rennovate there. Montgomery has some old houses on property that need some gutting and scraping, you would turn a nice profit if you were looking 5 years down the road.

And finally I would look in cornwall. Always has been a very nice area with great reputation, there are a lot of older homes there, great schools too, same goes for Montgomery and Walden. Cornwall has mountain views.

The upside is that you can get a fixer upper here for the low 200's, you get great schools and scenery. The downside is you are a bit further from NYC, but still in commuters land.

[Jason_Els]

First, you'll want to see this:

http://www.recordonline.com/apps/pbc...gory=SPECIAL01

It's the local rag's report on area school district performance.

Second, be aware that Walden is the butt of jokes for the rest of Orange county. Moderator cut: offensive. It's no status community, but it is rather pretty. There are quite a few older homes on lovely streets which could use some TLC. Walden is getting better but be very careful to consider property taxes, which are shockingly high throughout New York but even more so in the Hudson Valley area. Take it into account because it will be a major consideration, particularly in the Pine Bush school district.

Putnam is..... difficult. Prices are astronomical because it's where all the middle class went when they were squeezed out of Westchester and because it has good train service and highway access to the city.

Right now is a terrible time to buy. Housing prices are dropping and I'd urge you, if you can, to just wait. Putnam and Orange are the beneficiaries of the recent housing boom and while the market is slowing, the taxes are driving out the middle classes who used to live there since neither Orange nor Putnam have jobs which pay enough for people to actually live there. Either you work in the city or Westchester or you leave. Both counties saw the boom coming and they put a brake on apartment building before the boom began so apartments to rent are at a premium. In six months I think you'll see a market that will reward your patience.

I strongly urge you to come up for a few days. For centrality's sake, stay at one of the chain hotels in Newburgh. It's the best place to be to get around the Hudson valley. Very central. Just do NOT venture into the city of Newburgh itself. The town is ok, but the city itself is dangerous. Avoid Broadway at night and don't venture down the side streets even during the day. It's OK to drive down Broadway during the day if you're alert and a male, but don't get out of the car.

You might think Dutchess county would be cheaper, but it isn't. Nor is Ulster. Both areas have old traditional towns with large country houses and there are people who commute to the city even from these counties. The rule of thumb is that the east side of the river is more expensive than the west side and stay that way up until you reach the area above Rhinebeck on the east, and above Woodstock on the west.

Sullivan county does have some cheap-er places but the taxes are high, casinos are coming in, the driving can be full-out dangerous in winter, and its two cities, Monticello (act like a local and pronounce it 'montisello')and Liberty, have serious crime, poverty, and drug problems; Monticello more than Liberty. Be aware that you will find mountain people in the nether regions of Sullivan county so don't expect your neighbors to host cocktail parties or discuss Fellini at dinner. Sullivan's economy was hit very hard by the demise of the Catskill hotels, which is why they're looking to casinos. They're desperate.

[house-hunter]

Originally Posted by Jason_Els

First, you'll want to see this:

http://www.recordonline.com/apps/pbc...gory=SPECIAL01

It's the local rag's report on area school district performance.
[...]

hey great insight, I thank you for that. I too belive that prices will drop and have been waiting two years for them to do so. I dont think that I really had a choice. Wifes and my jobs keeping us in the westchester area and hoping that prices will drop enough to move within 20 minute commute. I know I will be paying big time for taxes and working my a** off but like I said I don't think I really have a choice.

Whats your feeling about price drops in the westchester area? or putnum? thanks again.

[MikeNY]

Putnam is great, that is where I live. Many many houses on the market, prices dropping like crazy and will pretty much level off come the new year. I work with lots of builders and investors, you have to find a good deal and trust me there are. Too many people (not wise) got themselves stuck in contract on new construction down south without getting a buyer for their homes up here and end up giving them away. Many houses need updating and that is where the money is made. Buyers these days want to do ZERO work, not even paint a single wall. If you get a good deal and fix it up you will make money trust me, they will buy.

[winnie]

Originally Posted by Jason_Els

First, you'll want to see this:

http://www.recordonline.com/apps/pbc...gory=SPECIAL01

It's the local rag's report on area school district performance.

Second, be aware that Walden is the butt of jokes for the rest of Orange county. Moderator cut: offensive. It's no status community, but it is rather pretty. There are quite a few older homes on lovely streets which could use some TLC. .

It is losing a lot of the old walden stereotypes, I hear less and less jokes about the place lately - AND it has some of the more affordable hosing in Orange...

But if I were looking to buy a house to get some equity I would look into Montgomery first, Wallkill second, then the outskirts of Walden. (Remember that there is a lot more to walden than just Oak st LOL!