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Which neighborhood should I be looking at if I want to buy a 2br condo with a budget of $400k? I currently rent in Astoria but am definitely priced out of that market. Looked at Forest Hills but there are not many condos and the ones I saw were ~800k for 2br condo. I don't mind going further out in Queens or maybe look at different neighborhoods in other boroughs. My criteria are: 1) near a E/F/M/R/N/6 subway station as those are the lines that will get me directly to my work without transferring. 2) safe neighborhood with decent food options as I order takeout a lot. 3) appreciation potential as I may be selling this in 7 years. 4) not a requirement, but would be nice if it's cashflow positive (i.e. I can rent it out for more than my monthly payment).
Any suggestions/thoughts? Would appreciate any feedback or ideas.
P.S: I know I'll be asked to look at co-ops but I really don't want to buy a co-op as 1) I may want to sublet in future and don't want the hassle of getting approval, 2) my impression is it's harder to sell co-ops and the price appreciation is lower, and 3) don't like the high monthly maintenance costs.
If condos had an price appreciation inherently above co-ops, then over time, condos would sell for 2x 3x 4x (and rising) more than co-ops. That isn't true because market forces pull the gap back into a normalized 10-15%. People who don't care about the difference gravitate to co-ops if the gap gets too high.
Maintenance is not higher in co-ops unless the co-op itself has a big mortgage and interest costs. It's just that in condos, your real estate taxes are separated and you pay them yourself directly to the city. In a co-op, it's bundled in because the corporation pays the tax, and you pay the corporation in one bill with everything else (utilities, doorman, etc.)
You are right about them being harder to sell- you have to apply to a co-op and they can have restrictive rules they can reject for almost any reason so the resultant illiquidity gets you to a long-term 10-15% discount.
Frankly, in your situation, where you have a set budget and your capital is limited relative to the expensive New York market level, you definitely should look at co-ops- you can buy a condo and rent it out, but you will get 10-15% less square feet for your buck on price/sq ft.
As to where you should look, this is easily answered with a search on streeteasy. Look like you'd be pursuing jackson heights, rego park, Jamaica, Kew gardens in queens; flatbush, midwood in brooklyn; Hamilton Heights and crummier areas of harlem in Manhattan.
Which neighborhood should I be looking at if I want to buy a 2br condo with a budget of $400k? I currently rent in Astoria but am definitely priced out of that market. Looked at Forest Hills but there are not many condos and the ones I saw were ~800k for 2br condo. I don't mind going further out in Queens or maybe look at different neighborhoods in other boroughs. My criteria are: 1) near a E/F/M/R/N/6 subway station as those are the lines that will get me directly to my work without transferring. 2) safe neighborhood with decent food options as I order takeout a lot. 3) appreciation potential as I may be selling this in 7 years. 4) not a requirement, but would be nice if it's cashflow positive (i.e. I can rent it out for more than my monthly payment).
Any suggestions/thoughts? Would appreciate any feedback or ideas.
P.S: I know I'll be asked to look at co-ops but I really don't want to buy a co-op as 1) I may want to sublet in future and don't want the hassle of getting approval, 2) my impression is it's harder to sell co-ops and the price appreciation is lower, and 3) don't like the high monthly maintenance costs.
Thanks everyone!
If you may be selling in 7 years, why consider buying? I don't think that you'll get back much of a return on a $400K condo in Queens, how much better will the neighborhood get? Unless you sink money into it in and make renovations.
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"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
If you may be selling in 7 years, why consider buying? I don't think that you'll get back much of a return on a $400K condo in Queens, how much better will the neighborhood get? Unless you sink money into it in and make renovations.
I agree with this. Doesn't make sense to buy if you already know you're selling in 7 years.
I agree with this. Doesn't make sense to buy if you already know you're selling in 7 years.
Everybody thinks they're the next Donald Trump. The ideology of settling down in a community (which is a major part of homeownership IMO) has completely gone out the window. I love sitting in front of my building in my gated community on a Friday night after a hard 40 hours, having a cold one with my fellow shareholders, what happened to that? Am I the only one? Smh.
__________________
"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
Everybody thinks they're the next Donald Trump. The ideology of settling down in a community (which is a major part of homeownership IMO) has completely gone out the window. I love sitting in front of my building in my gated community on a Friday night after a hard 40 hours, having a cold one with my fellow shareholders, what happened to that? Am I the only one? Smh.
Not at all. That's why I purchased, even though financially it isn't always the best decision.
We own our homes, are respnsible for them, and care about the neighborhood. That's how Americans should live. In my experience, renters generally do not hold the same values for where they live. The few units in my condo delpvelopment that are rented almost always prove this point.
Not at all. That's why I purchased, even though financially it isn't always the best decision.
We own our homes, are respnsible for them, and care about the neighborhood. That's how Americans should live. In my experience, renters generally do not hold the same values for where they live. The few units in my condo delpvelopment that are rented almost always prove this point.
I know you feel the same as I do but it seems like lately people don't care about that. That's why when people come on here saying they want to buy - and they have a timetable for living there, I just tell them they're better off renting.
__________________
"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
If condos had an price appreciation inherently above co-ops, then over time, condos would sell for 2x 3x 4x (and rising) more than co-ops. That isn't true because market forces pull the gap back into a normalized 10-15%. People who don't care about the difference gravitate to co-ops if the gap gets too high.
Maintenance is not higher in co-ops unless the co-op itself has a big mortgage and interest costs. It's just that in condos, your real estate taxes are separated and you pay them yourself directly to the city. In a co-op, it's bundled in because the corporation pays the tax, and you pay the corporation in one bill with everything else (utilities, doorman, etc.)
You are right about them being harder to sell- you have to apply to a co-op and they can have restrictive rules they can reject for almost any reason so the resultant illiquidity gets you to a long-term 10-15% discount.
Frankly, in your situation, where you have a set budget and your capital is limited relative to the expensive New York market level, you definitely should look at co-ops- you can buy a condo and rent it out, but you will get 10-15% less square feet for your buck on price/sq ft.
As to where you should look, this is easily answered with a search on streeteasy. Look like you'd be pursuing jackson heights, rego park, Jamaica, Kew gardens in queens; flatbush, midwood in brooklyn; Hamilton Heights and crummier areas of harlem in Manhattan.
Thanks for your feedback. I've just started doing research but it seems the discount for co-ops is much greater than the 10-15% you're saying. At least in Forest Hills where I was looking, a 2br co-op averages around 300-350k. A 2br condo is around 600k at least, most of the ones I saw were ~750-800k. I couldn't believe the difference!
If you may be selling in 7 years, why consider buying? I don't think that you'll get back much of a return on a $400K condo in Queens, how much better will the neighborhood get? Unless you sink money into it in and make renovations.
I ran the numbers and it made sense, even under the conservative assumption that the apartment doesn't appreciate at all. Of course, I'm screwed if it depreciates, but otherwise, works out to be better than renting.
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