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I grew up in a bad neighborhood in Brooklyn during the 80's and 90's. I remember seeking crack pipes on the street, little baggies and used condoms all over the place. I knew what a crack pipe was at the age of 6! However, despite some bad apples, ok a lot of bad apples, there were many wonderful people in my building and my neigborhood and my dream was to one day buy one of the pretty houses in the neighborhood. I worked very hard in school and got a good education in the hopes of some day being able to buy that house. In 95 those houses were very affordable, ranging between $100,000-$200,000. I was 15. Now its 2008 and the same houses start at $1.2 million an go up from there. The neighborhood isn't as bad as it was once, but its still a rough neighborhood. Should I just give up on buying a house there? I hate the housing market!
I hear you. A cousin of mine was born in 1973 in Brooklyn and grew up there. As he hit his teens everyone around him was telling him to move to the suburbs because Brooklyn was not the same place, was too dangerous, was only getting worse, etc. He wanted to stay because it was his home and he wanted to help make it great again. While he was in school and just starting out in his career, other people came in and beat him to it. A couple of years ago, at 32 with a child on the way, he looked at the situation, said there was no way that he could afford it here, and moved to Philadelphia. It's just too bad you, and he, couldn't buy houses at 15.
A lot of people on this forum say that NYC is a lot better today than back then, and there is much truth to that. A lot of them also kneel down before the free market, supply and demand, but this is the flip side of that. People who grew up in an area are, through no fault of their own, priced out, and the city loses something of its character as a result. It's also often said that newcomers have been moving to NYC since the dawn of time, and while that's true it's also been a predominantly Manhattan phenomenon. In Brooklyn there were more arrivals from other countries than from the comfortable suburbs of Chicago, Atlanta, etc. Now a huge swath of Brooklyn and Queens has been transformed. The vibe is not the same as it was when these areas were mostly populated by natives. I won't say for worse or for better, but it has been transformed. I don't say it to hate on those moving in, who are just looking for a place they can afford to live, but for someone in your situation it's a damn shame.
The housing market has gotten nuts. We all know the drill. There was a story about a house in Hastings that was $60,000 in 1974, like $200,000 in 1984, $400,000 in 1994, and $1.5 million in 2004. It may level off or even go down for a bit but there's not anything you can do personally to change things. If you're not in a position to afford the $1.2 million, you have to figure out if you'd rather shoot for a smaller condo in one of those houses or just write off the area altogether.
he looked at the situation, said there was no way that he could afford it here, and moved to Philadelphia. It's just too bad you, and he, couldn't buy houses at 15.
There are houses in Philadelphia for under 100K, some fully renovated. HOUSES, y'all!!!!!!!!
While I applaud your desire to buy in your neighborhood, it is always a good idea to expand all of your regional, financial and other options.
This is not to exclusively say leave New York or leave your neighborhood. But being open has benefits.
As much as I didn't want to leave Park Slope, I had no choice. I had many concerns about going to the Bronx. It turned out to be the best move I've ever made, because I keeped all of my options open.
Another point to consider......the brownstone may be outta reach, but the apartment may not necessarily be. Like I said, keep your options open!
The problem with buying an apartment is that it kills me to have to spend $400,000-$500,000 to buy a two bedroom when just a few years ago that money could have gotten you a big house in the same nighborhood. Even now that money can get you a big house with a big yard in other parts of the country. But of course the problem with that is that in other parts of the country you don't get the same pay as you do in NY so you can't afford the house anyway. I guess I'm just going to have live in an apartment for the rest of my life(either own or rent), or move to another state.
The problem with buying an apartment is that it kills me to have to spend $400,000-$500,000 to buy a two bedroom when just a few years ago that money could have gotten you a big house in the same nighborhood. Even now that money can get you a big house with a big yard in other parts of the country. But of course the problem with that is that in other parts of the country you don't get the same pay as you do in NY so you can't afford the house anyway. I guess I'm just going to have live in an apartment for the rest of my life(either own or rent), or move to another state.
Many parts of New York where a 2BR is well under 4-500K. I mean WELL UNDER!!!!!! Keep looking!!!!!!
The problem with buying an apartment is that it kills me to have to spend $400,000-$500,000 to buy a two bedroom when just a few years ago that money could have gotten you a big house in the same nighborhood. Even now that money can get you a big house with a big yard in other parts of the country. But of course the problem with that is that in other parts of the country you don't get the same pay as you do in NY so you can't afford the house anyway. I guess I'm just going to have live in an apartment for the rest of my life(either own or rent), or move to another state.
It is frustrating but it is what it is. Even if things don't continue at the pace they have been, it's unlikely those houses are going back to the old prices unless the crack vials come back. The genie is out of the bottle, and now we all have to make decisions about whether it's worth it to pay that much for an apartment (I say no and plan to leave NYC), or whether you should look in another part of New York or another area altogether, as my cousin did in moving to Phila.
In many other parts of the country the pay is lower, though not always low enough to completely eliminate the savings from housing being much cheaper. But my impression, having been to 45 states, is that housing is cheaper for a reason. A lot of people move to places like NC, Atlanta, Florida, Arizona. Some love their affordable new houses and climate, but a lot of others realize they just don't like the new place because it doesn't offer the things NY or the northeast generally offer. That's a personal preference and you will just have to figure out which is the lesser of the two evils.
As Scatman says there are some places in NY where you can a place well under 400-500K, but something pretty much always have to give. It may be ease of commute, it may be safety or aesthetics, but in today's NY 250K for 2 BR, or 400K for a whole house, will require sacrifice of some kind. Maybe the sacrifice would ultimately be less than what would be lost in moving to N.C.!
I can empathize with your disappointment. In the mid-90's I was in college here and was watching studio apts get snatched up in brownstone Brooklyn for well under $100k. I knew it was a bargain back then and wish I was more resourceful and found a way to scrape together 20% down on my non-existent college budget. Now that I am in my late twenties and have a stable job with a decent salary those same place are going for close to $300k. The problem is not the monthly carrying costs for a place of that price but the long path to saving for the down payment. By the time I have the 20% for a 300k place it may even be more depending on what the market does in the next couple years.
Basically all you can do is make sacrifices to save every bit you can and buy a small starter apt to build equity and start up the property ladder. I am currently looking at 1br's in the $200 - $250k range and there are still some great neighborhoods left out there in that price range. You just have to expect a bit of a commute. The days of great bargains are over in NY and for the vast majority of us the chance to own a townhouse has passed.
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