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Any math fans out there? I asked myself whether Penn South is worth it from a financial standpoint.
In my opinion, Penn South is on the expensive side for a limited-equity co-op. I know they have fixed up the buildings' heat and AC systems and built their own power generator. Impressive.
But I wanted to crunch some numbers to see how it works to pay the development $100,000, the buy-in for the smallest one-bedroom, which you will get back (without interest) when you move out.
So I calculated the interest you would be giving up, assuming you have the $100,000 invested in the stock market instead and you're getting 6% interest.
In 10 years, that money has grown to $179,084.77.
In 20 years, the money has grown to $320,713.55.
In 30 years, the money has grown to $574,349.12.
So, to use 10 years as an example, you would have given up almost $80,000 in interest. If we divide that by 120, which would be the number of months you've lived at Penn South for those 10 years, that comes out to $666.00.
If you're paying $600 a month carrying charges for a small one-bedroom, and you add the $666 to it, that comes to $1,266 a month. That's assuming you paid the $100,000 outright. It would be more expensive if you had to borrow some of the money.
(Of course, the $600 would be increasing at certain points during the 10 years, but I didn't know how to calculate that.)
So I guess I proved to myself that it is worth it to live at Penn South!
I checked Streeteasy for one-bedrooms in the area, and saw one in Chelsea on Seventh Avenue that was actually similar in size. That one (a condo) was going for $899,000 (asking price), with an estimated monthly nut of $5,200. So that's a heap of money unless prices skyrocket!
I checked my e-mail again this morning and I got one for a one bedroom too. So, I got called for the studio and the one bedroom list. I honestly cannot believe this luck, especially because I am still salty about not getting on the list for Big Six in Queens.
For a studio, my number is 7X
For a one bedroom, my number is 12X.
If you got an email and the email body says "studio," plus your number is followed by an "S" that means it's a studio (even though the portal says one bedroom). The one bedroom numbers are followed by "N."
I'm going for the one bedroom. But I already put in for the studio so before I do anything I have to call to see if they can remove my name from the studio list.
Can you please tell me what you stepped in for this kind of luck? Not only did you get picked for Cadman - but Penn South TWICE? And your family got in too?
I've tried other housing lotteries and never get picked but this one really devastated me - I was so sure I'd finally get lucky. If there's a secret to this kind of universe karma, I want in.
Can you please tell me what you stepped in for this kind of luck? Not only did you get picked for Cadman - but Penn South TWICE? And your family got in too?
I've tried other housing lotteries and never get picked but this one really devastated me - I was so sure I'd finally get lucky. If there's a secret to this kind of universe karma, I want in.
I know your disappointed. But these things take time. I've been inquiring about Penn south for over a decade. Last lottery I wasn't picked. I've been applying for affordable housing for almost 20 years. Keep at it. Try not to to let feelings of jealousy get in your way. Keep on with your life, keep applying and one day your day will come too.
Last edited by livingsinglenyc; 11-29-2019 at 01:48 PM..
Hi All! I found this thread after finding out that I got selected for a one-bedroom in the 2019 lottery. The email came two days before thanksgiving and I’m certainly very thankful! My lottery position is 70 something. Hopefully that’ll mean a lowish wait list number when it’s available in February. Although, I also wouldn’t mind to have some time to sort out my finances before getting an apartment. Reading the previous posts on the mortgage process was very helpful. Thank you to the 2014 lottery winners for sharing their experience and tips.
Wanted to update, I also received a letter in the mail.
That’s good to know! In case the email went astray, it’s good to have a paper backup for something so important.
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But I already put in for the studio so before I do anything I have to call to see if they can remove my name from the studio list.
