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It is no wonder all of the 20 and 30 something people are all moving off of Long Island.....with the way housing prices are still jacked up here and crazy taxes, if you are in your late 20's or early 30's you would be a fool to buy here.
Even if you saved up 100K for a down payment on a 400 or 500K house, that still leaves you with a huge 300 or 400K mortgage with say 5% interest.
Not to mention paying 12-15K in property and school taxes, which go up every year like clockwork.
I am in my late 20's and have been renting the last few years since I moved out of my parents house when I was 23, and frankly, I am in no rush to buy anything (unlike my friends, who are blinded by the "American Dream" of home ownership) as well as the social pressures from their families, wives or gf's thinking it is some status symbol.
With my current renting situation I have a good deal where I have a really nice 1 bedroom apt and ALL of my utilities are included (including electric), I do not pay any property or school taxes, and I pay no interest on my rent like I would on a mortgage. At the end of the month I still have enough money left over to save a little and go out with my friends for some entertainment (movies, drinks, dinner, whatever)....not living paycheck to paycheck trying to pay a 2500 or 3K mortage...
I still do not see the benefits of home ownership for the young people of LI in my age bracket, even though it is forced down our throats by our families and significant others. (You do not know how many times some ppl I talk to say you are throwing your money away renting).
I see the benefits of renting. I should have done that myself for a while before purchasing my house in 2004. However, now houses are at a low and interest rates are at an all time low. I understand your argument about the property taxes(believe me). However, you cannot argue that with each payment, you gain equity in your home...at least now you most likely will. After years of paying, you will have an asset that will be worth more than what you owe(again by today's standards). This can never be obtained by renting. If you compare 20 years of renting to 20 years of home ownership, the homeowner comes out on top.
You use to be able to say the above, but when that wild craze of refinancing hit LI like a tidal wave, it washed that reality away. I have a friend, in this case, who bought her place WAY back in the late 80's while I whupping it up globally, renting, houseshares, housesitting, etc. To this day, she is WAY underwater on this property with all those easy "they're here for your taking" HELOCS and God knows what other products.
I'm personally from a family of serial renters (Queens, Brooklyn), so I really didn't get any pressure to buy. Even when I moved back to the NY area, I would switch out my apartments/neighborhoods as my fortunes increased or decreased at work. No, I wasn't building any equity - but I did have plenty of freedom and very few worries. When I finally caved to the "you have to OWN" brigade at work, I finally folded in 2005. Yep, just about the height of the market. I will not make back what I bought that place for in I would say SEVERAL more years. And the minute someone hits that bid, I'm out of this real estate game. In saying all this, my approach works well if you are single and tend to travel both personally and professionally for work. If you're looking to settle down with a partner and you are both stirring for the pitter patter of little feet - then yeah - home ownership DOES make sense.
In the same way that you would not put up with pressure to marry someone, don't fold under the pressure of this. Marriage / Mortgage = Full Time Commitment. You're young once. Have a blast. See and do it all and when you finally feel weary enough to head for "home", make up your mind then.
And remember, my young friend: As you are now, so once was I. Best of luck to you on whatever choice you make. But do it cause it feels good - NOT - cause its the same thing all your other friends are willing to do.
Who says you need to buy a house, that's the thing? Condos and co-ops are just as good, the taxes are lesser and generally factored into the maintenance so you really don't know you're even paying them. Not to mention they are waayyyy cheaper per month...and if you can find a place to buy that is less than what you would pay per month renting (like I did), why on earth would you rent?
I own and I pay under $1,000 a month. For me...renting would be more money and a complete waste. Not to mention like previous posters said, you get equity on your home with each mortgage payment you make...and you get tax deductions too.
04-11-2011, 05:59 AM
grant516
n/a posts
It goes beyond buying a house on LI, you'd be nuts to even rent or live on Long Island unless you had something specific tying you there.
LI still has the most overinflated housing stock- but many people want the tax credit, to build better credit & equity.
Buy in a place where a market is bad, turn around rent for a small profit. Take your tax break, and build equity/credit. Rent until NY until the market violently crashes there.
You don't have to buy a 400K house. There are plenty of houses out there on LI for 200K, they may not in the neighborhood you were hoping for but they exist. A lot of them are not bad either, and if you can get past the image of certain neighborhoods that's been implanted in your head since you were a child you'll find that you can have a nice place to live without selling your soul to a bank.
You don't have to buy a 400K house. There are plenty of houses out there on LI for 200K, they may not in the neighborhood you were hoping for but they exist. A lot of them are not bad either, and if you can get past the image of certain neighborhoods that's been implanted in your head since you were a child you'll find that you can have a nice place to live without selling your soul to a bank.
Exactly, plenty of capes in decent areas under 400k, problem is alot of the Generaxtion x/y's want everything now!! Save your pennies, buy when you think is right, make 1-2 home improvements per year and in a few years you will have a beautiful home.
You don't have to buy a 400K house. There are plenty of houses out there on LI for 200K, they may not in the neighborhood you were hoping for but they exist. A lot of them are not bad either, and if you can get past the image of certain neighborhoods that's been implanted in your head since you were a child you'll find that you can have a nice place to live without selling your soul to a bank.
Sure there are but who wants to live or invest in the likes of Huntington Station,Freeport,Roosevelt,Hempstead,Etc.,Etc, Etc. Only a person with 1/2 a brain is gona do that. MO
It is no wonder all of the 20 and 30 something people are all moving off of Long Island.....with the way housing prices are still jacked up here and crazy taxes, if you are in your late 20's or early 30's you would be a fool to buy here.
Even if you saved up 100K for a down payment on a 400 or 500K house, that still leaves you with a huge 300 or 400K mortgage with say 5% interest.
Not to mention paying 12-15K in property and school taxes, which go up every year like clockwork.
I am in my late 20's and have been renting the last few years since I moved out of my parents house when I was 23, and frankly, I am in no rush to buy anything (unlike my friends, who are blinded by the "American Dream" of home ownership) as well as the social pressures from their families, wives or gf's thinking it is some status symbol.
With my current renting situation I have a good deal where I have a really nice 1 bedroom apt and ALL of my utilities are included (including electric), I do not pay any property or school taxes, and I pay no interest on my rent like I would on a mortgage. At the end of the month I still have enough money left over to save a little and go out with my friends for some entertainment (movies, drinks, dinner, whatever)....not living paycheck to paycheck trying to pay a 2500 or 3K mortage...
I still do not see the benefits of home ownership for the young people of LI in my age bracket, even though it is forced down our throats by our families and significant others. (You do not know how many times some ppl I talk to say you are throwing your money away renting).
What does everyone else think?
The benefit of owning a home is to contribute to the underfunded pension plans of the public sector worker (think teacher, NCPD, SCPD, public administrators) and to make your mark on excessive public waste. Also, to feel you are contributing to society by being a "dumb" sheeple and accepting ever increasing taxes as a forced diet plan - no need to eat as you now have no money for food, all earnings must go to the public pot.
Sure there are but who wants to live or invest in the likes of Huntington Station,Freeport,Roosevelt,Hempstead,Etc.,Etc, Etc. Only a person with 1/2 a brain is gona do that. MO
Live wherever you want, what do I care? I don't have a mortgage and I own a nice house, so if you want to be in deep debt to a bank for most of your life for an overpriced house cause you are afraid of everything then be my guest.
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At the end of the month I still have enough money left over to save a little and go out with my friends for some entertainment (movies, drinks, dinner, whatever)....not living paycheck to paycheck trying to pay a 2500 or 3K mortage...
Also, to feel you are contributing to society by being a "dumb" sheeple and accepting ever increasing taxes as a forced diet plan - no need to eat as you now have no money for food, all earnings must go to the public pot.
