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Again, you are supplementing with rental income. A lot of folks only have the income from their job to live and save off of. I wish I was blessed with an inheritance from my parents to buy a house with. Quite the opposite for me, they're struggling living check to check. It's not impossible, but it would take a very long time to save for a house here if you are making anywhere near the median household statistic for NYC after taking into account living expenses and taxes and the housing prices in the city.
I didn't get anything from my family, $0 because frankly they barely have enough to support themselves. My spouse and I only put 3.5% down on our home which we have a PMI on (wish we had 20% to put down but we had rather have cash for a rainy day). We live frugally, don't go out every weekend, don't buy designer items, and the biggest advantage we had was no college debt. He got a scholarship and i went to a CUNY (the best decision i have made in life thus far). When we bought our home we made around 110K together, thats only 10K more than the median household average in NYC. We also paid market rent while actively saving. Its not easy at all but its absolutely doable, like i said it requires major sacrifices. Its not my dream home, its not easy being a landlord, old homes have issues but it beats renting any day. Aim high enough so if you don't actually get to the point you were aiming for, you still are at a better place than before.
I didn't get anything from my family, $0 because frankly they barely have enough to support themselves. My spouse and I only put 3.5% down on our home which we have a PMI on (wish we had 20% to put down but we had rather have cash for a rainy day). We live frugally, don't go out every weekend, don't buy designer items, and the biggest advantage we had was no college debt. He got a scholarship and i went to a CUNY (the best decision i have made in life thus far). When we bought our home we made around 110K together, thats only 10K more than the median household average in NYC. We also paid market rent while actively saving. Its not easy at all but its absolutely doable, like i said it requires major sacrifices. Aim high enough so if you don't actually get to the point you were aiming for, you still are at a better place than before.
Thats great....when did you buy in and what was the price of your 1st house if you don't me asking? Yea, a household must be very disciplined savers to buy in here at current market prices. A lot of the current generation millenials (like myself) like living in the current (vacations, luxury cars, clothes) and save very little for the future, I know it can get very discouraging once one see what the house prices in the desirable neighborhoods....$600k and up.
According to this article, average Brooklyn house values were $557k and Queens houses for $439,500k
Thats great....when did you buy in and what was the price of your 1st house if you don't me asking? Yea, a household must be a very disciplined saver to buy in here. I know it can get very discouraging once one see what the house prices in the desirable neighborhoods....$700k and up.
Its not my dream home or neighborhood. But its close to the train and convenient to the city and other parts of Brooklyn. We purchased in 2014, for around 700k with closing cost included. My mortgage with the rental income is less than what i was paying in rent for just 680sq ft but i do have other maintenance expenses now (We have done a lot of little projects in our home in 2 years). The process was completely discouraging, and this was when the brooklyn boom was still catching fire and not just in the gentrified areas. Now I'm in Eastern Bed Stuy where renovated homes on my block, just 2 years later are going for well over a million dollars. Granted the renovations are top notch and my home looks nothing like that lol.
Its not my dream home or neighborhood. But its close to the train and convenient to the city and other parts of Brooklyn. We purchased in 2014, for around 700k with closing cost included. My mortgage with the rental income is less than what i was paying in rent for just 680sq ft 2 bedroom apartment (really it was 1 and 1/2 bedroom) in Clinton Hills but i do have other maintenance expenses now (We have done a lot of little projects in our home in 2 years). The process was completely discouraging, and this was when the brooklyn boom was still catching fire and not just in the gentrified areas. Now I'm in Eastern Bed Stuy where renovated homes on my block, just 2 years later are going for well over a million dollars. Granted the renovations are top notch and my home looks nothing like that lol.
I would have never thought the sellers would get this price for the area. I actually seen it in person and it's a beautiful home but not 1.4 million worthy.
Thats great....when did you buy in and what was the price of your 1st house if you don't me asking? Yea, a household must be very disciplined savers to buy in here at current market prices. A lot of the current generation millenials (like myself) like living in the current (vacations, luxury cars, clothes) and save very little for the future, I know it can get very discouraging once one see what the house prices in the desirable neighborhoods....$600k and up.
According to this article, average Brooklyn house values were $557k and Queens houses for $439,500k
The types of people who are able to buy homes in metro NYC are generally people who move up in their careers somewhat, and were able to somewhat find stable sources of income. You also need to make sure your credit is good.
I don't think a low income person can realistically save up enough money to buy a home. You'd have to move up socioeconomically. Everyone is going to spend and live in the present, however you need to learn to invest your money in things that will help you earn money over time. Get a good education, for example.
The types of people who are able to buy homes in metro NYC are generally people who move up in their careers somewhat, and were able to somewhat find stable sources of income. You also need to make sure your credit is good.
I don't think a low income person can realistically save up enough money to buy a home. You'd have to move up socioeconomically. Everyone is going to spend and live in the present, however you need to learn to invest your money in things that will help you earn money over time. Get a good education, for example.
And that applies everywhere to be honest. Those working in areas where housing is cheaper, is usually making less than the average New yorker, so the in balance remains all over the country. I know in NYC the prices look intimidating, hundreds of thousands in a loan is a large commitment but if you have the credit and income don't give up hope. You'll be surprised how more stable a person will be owning a three family, renting out two units and also doing airbnb is an option now. Rather than just paying rent, you just have the make that huge decision to sacrifice and do it. But like you said education is important and many people aren't educated especially financially.
And that applies everywhere to be honest. Those working in areas where housing is cheaper, is usually making less than the average New yorker, so the in balance remains all over the country. I know in NYC the prices look intimidating, hundreds of thousands in a loan is a large commitment but if you have the credit and income don't give up hope. You'll be surprised how more stable a person will be owning a three family, renting out two units and also doing airbnb is an option now. Rather than just paying rent, you just have the make that huge decision to sacrifice and do it. But like you said education is important and many people aren't educated especially financially.
I dont like that people are projecting that image of being a landlord in order to own. Who wants that headache. It doesnt even matter if you get good tenants, who wants to be bothered with the screening. Economic slaves, all of us are.
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"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
I dont like that people are projecting that image of being a landlord in order to own. Who wants that headache. It doesnt even matter if you get good tenants, who wants to be bothered with the screening. Economic slaves, all of us are.
You can Airbnb out for extra money so you don't always have to deal with long term. And though being a landlord can be a pain, depending on who your tenants are it can work out quite well for you. I notice that people in the Latin and Asian neighborhoods in Queens often rent out homes they own to extended family members for example.
I also think he was saying being a landlord is an option that can help some people own, not that it was the definitive way to own.
I dont like that people are projecting that image of being a landlord in order to own. Who wants that headache. It doesnt even matter if you get good tenants, who wants to be bothered with the screening. Economic slaves, all of us are.
You don't really have a choice. The government is propping up the real estate market by allowing people to be heavily leveraged. In addition, the economy is changing to a shared base one and having a stable job is more violate than in the past. Everyone keeps waiting for a real estate crash, but given most people net worth is tied to their house it would be too big of a political risk for the government to allow a real estate crash. They would just allow people to borrow more and extend the duration from 30 years.
I dont like that people are projecting that image of being a landlord in order to own. Who wants that headache. It doesnt even matter if you get good tenants, who wants to be bothered with the screening. Economic slaves, all of us are.
What's better being a landlord or dealing with rising rents? For some people being a landlord is the only way they will be able to own.
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