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Old 05-25-2011, 09:49 AM
 
Location: N.Y.
40 posts, read 65,105 times
Reputation: 27

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Quote:
Originally Posted by GetoffLI View Post
Yup agreed, there is def lot of money here...people who have banked 15-30 years ago, and are in there 50s and 60s, starting to go gray on the sides a bit, in a paid off house worth $2m sipping margaritas by the pool in the backyard. Oh and a Mercedes financed with last years tax return in the driveway. Younger people who want that same opportunity are doing it in other places where the market is easier to get into. So, I don't think its a question of loosers leaving....that's the provincial attitude prevalent on LI speaking.
I simply would rather live anywhere else other than Long Island. I'm only here because of necessity (aging grandparents and their failing health). -and decent pizza and bagels. Kinda hard to get away from those bagels.

Once they're gone, I'm gone. I could probably get this nice long island home on 3 lots for less than $300k, but you couldn't really give it to me. I'd take a run-down house in Orange County for $150,000 first and put $20,000 into it.
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Old 05-25-2011, 09:50 AM
 
426 posts, read 955,247 times
Reputation: 271
Yes, I understand most of what you are saying, but how can a couple in their late 20's or early 30's afford a 500K home!?....Even 400K......and for that money you do not get much.....maybe an old ranch or a 2 story split that needs ALOT of work....

Whereas if you go to Florida or the Carolinas you can get a brand new 4 bedroom colonial for about 250-300K or so....

I think the only people buying these houses on LI are rich people who live in the city with high paying jobs and want to come out to the suburbs where it is "quieter"...

IMO, housing prices on LI should be about 20-30% lower than where they are now, to reflect what the rest of the country looks like....

So that 500K house should be about 350.....
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Old 05-25-2011, 09:56 AM
 
6,373 posts, read 13,086,300 times
Reputation: 4652
Im one of those people who have bought in the past 3 months. I bought a condo in 2001, lived cramped for 4 years while I saved for my house. Seems like everyone thinks they should be able to afford a house with a low paying basic skill job. Let me tell you people its the same thing where ever you move to, just different numbers and salaries but the same ending ratio's. Many folks I know cant afford houses in other states as well.
I looked into relocating but the 30% pay cut & having to pay for health insurance wasnt enough to pull me in. If you're in a career where you know you wont be making money to ever buy here then yes, move away. People will say how expensive it is in NYC till the end of time too.
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Old 05-25-2011, 09:57 AM
 
Location: N.Y.
40 posts, read 65,105 times
Reputation: 27
Quote:
Originally Posted by Logical95 View Post
Yes, I understand most of what you are saying, but how can a couple in their late 20's or early 30's afford a 500K home!?....Even 400K......and for that money you do not get much.....maybe an old ranch or a 2 story split that needs ALOT of work....

Whereas if you go to Florida or the Carolinas you can get a brand new 4 bedroom colonial for about 250-300K or so....

I think the only people buying these houses on LI are rich people who live in the city with high paying jobs and want to come out to the suburbs where it is "quieter"...

IMO, housing prices on LI should be about 20-30% lower than where they are now, to reflect what the rest of the country looks like....

So that 500K house should be about 350.....
My question is what keeps a couple in their 20s and 30s interested in Long Island? There's nothing really here, and certainly nothing free.. Unless you want to go to the park and watch a doo-wop band perform for the geriatrics?
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Old 05-25-2011, 10:03 AM
 
6,373 posts, read 13,086,300 times
Reputation: 4652
I dont understand what you're saying...why do you need a 500k home? These houses in other states for 250-300k come with jobs that pay 40-50k. Do the math..its all the same at the end of the equation. Well unless you bought a house on LI 15 years ago and have some sweet equity to take with you out of state.


Quote:
Originally Posted by Logical95 View Post
Yes, I understand most of what you are saying, but how can a couple in their late 20's or early 30's afford a 500K home!?....Even 400K......and for that money you do not get much.....maybe an old ranch or a 2 story split that needs ALOT of work....

Whereas if you go to Florida or the Carolinas you can get a brand new 4 bedroom colonial for about 250-300K or so....

I think the only people buying these houses on LI are rich people who live in the city with high paying jobs and want to come out to the suburbs where it is "quieter"...

IMO, housing prices on LI should be about 20-30% lower than where they are now, to reflect what the rest of the country looks like....

So that 500K house should be about 350.....
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Old 05-25-2011, 10:09 AM
 
Location: under the beautiful Carolina blue
22,615 posts, read 36,521,804 times
Reputation: 19819
It's not just the prices it's the taxes....like someone else said when you realize that by the time you retire, your monthly tax payment will be the same as your mortgage was, you have to start wondering what's the point. We calculated that our taxes would be between $18K-$24K by the time we retire. $2000 a month in taxes, just to pay for someone else's retirement? No thanks. I'd rather it go in my own retirement coffers.

People are burying their heads in the sand about this issue and thinking that the government is actually going to do something about it. Not gonna happen.
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Old 05-25-2011, 10:13 AM
 
Location: Pixley
3,519 posts, read 2,803,691 times
Reputation: 1863
Quote:
Originally Posted by rocafeller05 View Post
Im one of those people who have bought. I bought a condo, lived cramped for 4 years while I saved for my house. Seems like eveyone thinks they should be able to afford a house with a low paying basic skill job on here. Let me tell you people its the same thing where ever you move to, just different numbers and salaries but the same ending ratio's. Many folks I know cant afford houses in other states as well.
I looked into relocating but the 30% pay cut & having to pay for health insurance wasnt enough to pull me in. If you're in a career where you know you wont be making money to ever buy here then yes, move away.
I don't think the OP thinks they should be able to afford a house with a low paying basic skill job. The question is how can one afford to buy a home for $400K to $500K when the median household income in the area is about $80K to $90K? Using standard debt ratios like monthly housing costs should be 28% to 33% of monthly income or a home should be around 3 times annual salary, median LI home prices should be around $240K to $270K. You can fudge up a little for the NYC area premium, but even at 4 times annual salary, the range should be $320K to $360K.

This is from the LIA link that zulu posted:

"More than a third of all Long Islanders are burdened with high housing costs – that is, they spend more than 35% of their income on their housing. One in five residents, in fact, spends more than half of their income on housing."

The accompanying chart towards the bottom of the page show that the ratio of home value to household income in 2009 is at 5:1, still much higher than the 3:1 norm back in 2001. I think this will weigh on home prices in the next few years as the ratios in the cart and quote are unsustainable.
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Old 05-25-2011, 10:18 AM
 
Location: Union County
6,150 posts, read 9,970,372 times
Reputation: 5831
Quote:
Originally Posted by rocafeller05 View Post
I dont understand what you're saying...why do you need a 500k home? These houses in other states for 250-300k come with jobs that pay 40-50k. Do the math..its all the same at the end of the equation. Well unless you bought a house on LI 15 years ago and have some sweet equity to take with you out of state.
NAHB/Wells Fargo Housing Opportunity Index (HOI)

Nassau-Suffolk, NY ^^^ 54.5 103.6 375 211 39

On their just released "House Affordability Index", which is based on income like you use here...

Long Island was #211 out of a total 222 areas tracked. You're skewing the math greatly to try and make a point that is obviously wrong. Only about half the houses sold on LI in the first quarter of 2011 were "affordable" based on the median income for the area.
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Old 05-25-2011, 10:38 AM
 
537 posts, read 1,440,949 times
Reputation: 383
Quote:
Originally Posted by Logical95 View Post
With what has gone on with the real estate market the past 3 years or so, how can housing prices on LI still be so inflated?...

For the money, and the property you get, plus the insanely high property taxes, for a decent house you are still paying about 400K....

Meanwhile, in most other states


<SNIP>


Might as well stop there. There are "other states", and there is New York City.

If the other states are so great, then I would suggest moving there. But I am going to guess that you want to stay in Long Island hence the reason for this thread.
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Old 05-25-2011, 10:51 AM
 
6,373 posts, read 13,086,300 times
Reputation: 4652
^^ Yup. No sense of arguing or getting in a pissing match. If you can afford it stay. If you cant move to where you can. Just like Mikeykid did. Done.
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