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I'm waiting for the Queens foreclosures in 2021, so far good opportunities are coming up but I'm waiting for better.
One thing though is I'd like the NY real estate experts to weigh in here.
What sort of property tax increases are we probably looking at? A lot of the rich people are leaving Manhattan. This may mean without a significant federal bailout Queens which has the high home ownership may be on the hook for a bigger contribution.
I may be able to pay cash but I don't want to buy if I'm going to be paying as much in rent on property tax, HOA, insurance and maintenance/carrying charges as I would on rent. That'd sort of be pointless.
Meanwhile due to lower demand as a tenant for the next 10 years I'd have more flexibility and options to move around and my rent won't go up by much.
Thoughts?
My main objective for buying property in cash is to not pay nearly $2k a month down the drain, but sounds like that might happen either way. Instead I could put that money to work in lower maintenance investments like Gold, Crypto and Stocks or REITs which are more hands off.
Buying in cash with historically low rates is idiotic imo. These rates are here to stay. Like you said put 20% down, build a hefty emergency fund and throw the rest at the market. My main question is: why in the world would you want to buy in this cesspool?
I'm waiting for the Queens foreclosures in 2021, so far good opportunities are coming up but I'm waiting for better.
One thing though is I'd like the NY real estate experts to weigh in here.
What sort of property tax increases are we probably looking at? A lot of the rich people are leaving Manhattan. This may mean without a significant federal bailout Queens which has the high home ownership may be on the hook for a bigger contribution.
I may be able to pay cash but I don't want to buy if I'm going to be paying as much in rent on property tax, HOA, insurance and maintenance/carrying charges as I would on rent. That'd sort of be pointless.
Meanwhile due to lower demand as a tenant for the next 10 years I'd have more flexibility and options to move around and my rent won't go up by much.
Thoughts?
My main objective for buying property in cash is to not pay nearly $2k a month down the drain, but sounds like that might happen either way. Instead I could put that money to work in lower maintenance investments like Gold, Crypto and Stocks or REITs which are more hands off.
Excerpt: I don't want to buy if I'm going to be paying as much in rent on property tax, HOA, insurance and maintenance/carrying charges as I would on rent. That'd sort of be pointless.
Response: Opinion
It is not pointless......
Once owned ...........the monthly maintenance of co op or condo would stop as a homeowner.
You will be the sole decision maker of what needs or does not need repair........ Watch a bunch of
you tube videos and make your own repairs. Money in your pocket.
As far as waiting or buying for a first time buyer in year 2020 -2021?
#1
If you are secure in your job and finances and have a decent
down payment ready ( 1/4 and up ) go to step #2 if not go to step #5.
#2
Right now pocketed areas ( meh to O.K. ) have seen drops up to $100,000.
If it's an area you like jump on it if not wait. I am anticipating they will continue
to come down. Always buy in winter. Best prices. Purchased all my homes during
Blizzards. Stay away from neighborhoods folks are drooling over. Overrated.. Prices
historically only go up. I suggest at least a two family house for beginners...You need
all the help you can get in the beginning.
#3
New York City is in a financial crisis. Expect increases across the board. No one is safe.
Like I said .....Have a rental unit or get a second job if going with a one family............... I'm serious on this one.
I personally would wait into 2021. It's not as if rates are going up anytime soon in this environment. Remember homeowners had the opportunity to back load their loans if they were in trouble, so they've been able to buy time if they were in danger of defaulting on their loan. We still have don't fiscal stimulus yet despite all of the talks about it, and the unemployment program from the CARES Act is set to expire soon if Congress doesn't move to do anything. Some food for thought:
"The number of unemployed Americans who are out of work six months or more increased by almost 40% last month." (This is as of TODAY). Sounds like a ticking time bomb...
I personally would wait into 2021. It's not as if rates are going up anytime soon in this environment. Remember homeowners had the opportunity to back load their loans if they were in trouble, so they've been able to buy time if they were in danger of defaulting on their loan. We still have don't fiscal stimulus yet despite all of the talks about it, and the unemployment program from the CARES Act is set to expire soon if Congress doesn't move to do anything. Some food for thought:
"The number of unemployed Americans who are out of work six months or more increased by almost 40% last month." (This is as of TODAY). Sounds like a ticking time bomb...
Yeahbut you have to remember NYC housing market is dominated by renters. Even when you include co-op and condo units numbers of those who own property in this city is small compared to renters.
NYC and some NYS politicians only get worked up about foreclosures when things begin to affect "moderate" income homeowners who usually (but not always) are POC and or maybe immigrants who bought homes they really couldn't afford without stretching. When something happens (and it always does), they find themselves unable to pay not only their mortgage but taxes and other costs of owning.
East New York, Canarsie, and some other areas are full of such households. They often paid far too much for their homes (for what they are), and find even if they want to sell no one else is foolish enough to pay that kind of money.
When congress creates bailout packages thus NYC often becomes a special case. Current covid-19 situation is case in point. While some homeowners are in a tight spot, it is really large numbers of renters who have larger worries. Many will never be able to pay off accrued back rent and or in some cases keep up forward rent a current number.
Yeahbut you have to remember NYC housing market is dominated by renters. Even when you include co-op and condo units numbers of those who own property in this city is small compared to renters.
NYC and some NYS politicians only get worked up about foreclosures when things begin to affect "moderate" income homeowners who usually (but not always) are POC and or maybe immigrants who bought homes they really couldn't afford without stretching. When something happens (and it always does), they find themselves unable to pay not only their mortgage but taxes and other costs of owning.
East New York, Canarsie, and some other areas are full of such households. They often paid far too much for their homes (for what they are), and find even if they want to sell no one else is foolish enough to pay that kind of money.
When congress creates bailout packages thus NYC often becomes a special case. Current covid-19 situation is case in point. While some homeowners are in a tight spot, it is really large numbers of renters who have larger worries. Many will never be able to pay off accrued back rent and or in some cases keep up forward rent a current number.
Agreed. With rents hovering near $2,000 or over for some, two months of arrears is near or over $4,000 in. Have a neighbor who is over $10,000 in arrears. Korean family. Don't know if they'll be able get it paid off either. Came home one night and saw the demand for rent notice. They hadn't paid rent for a good five plus months.
Yeahbut you have to remember NYC housing market is dominated by renters. Even when you include co-op and condo units numbers of those who own property in this city is small compared to renters.
NYC and some NYS politicians only get worked up about foreclosures when things begin to affect "moderate" income homeowners who usually (but not always) are POC and or maybe immigrants who bought homes they really couldn't afford without stretching. When something happens (and it always does), they find themselves unable to pay not only their mortgage but taxes and other costs of owning.
East New York, Canarsie, and some other areas are full of such households. They often paid far too much for their homes (for what they are), and find even if they want to sell no one else is foolish enough to pay that kind of money.
When congress creates bailout packages thus NYC often becomes a special case. Current covid-19 situation is case in point. While some homeowners are in a tight spot, it is really large numbers of renters who have larger worries. Many will never be able to pay off accrued back rent and or in some cases keep up forward rent a current number.
not only is nyc and the boroughs more renters , but close to half the housing falls under stabilization .
we have been watching for deals in westchester and so far nothing ...
foreclosures tend to be poor deals most of the time . not only that but you can end up with a home vandalized and stripped of everything inside .
we won a tax lien in new jersey that was auctioned of by the town. boy was it a nightmare and it ended up costing us a fortune.
we ended up having to go through eviction proceedings as they refused to leave ..once they did leave the house was stripped of all copper pipes , wires , etc ... it was totally vandalized and we could not prove they did it . we had to literally build a new house.
if this was an investment property i would never buy on cash .... my own home , is a different story if i was retired , but i still wouldn't buy for cash if i was in my investing years .
Excerpt: I don't want to buy if I'm going to be paying as much in rent on property tax, HOA, insurance and maintenance/carrying charges as I would on rent. That'd sort of be pointless.
Response: Opinion
It is not pointless......
Once owned ...........the monthly maintenance of co op or condo would stop as a homeowner.
You will be the sole decision maker of what needs or does not need repair........ Watch a bunch of
you tube videos and make your own repairs. Money in your pocket.
Can you expand on this please?
It's hard because it varies by property I'm sure. But depending on the mortgage debt level of the building owner i was under the impression that you must pay monthly carrying charges or maintenance for general upkeep of the building.
This seems to range anywhere from $500-2000 depending where you are in the city and the quality and integrity of the management company.
Then you have the property tax of $5k currently worst case scenario for a $450k condo or co-op which may or may not be included in the figure above for monthly carrying charges.
After that is HOA which may or may not be included in monthly maintenance depending on if co-op or condo.
Lastly home owners insurance which is then more costly if you have an outstanding mortgage.
So to the poster who said don't pay cash, I don't want to be having literally a double monthly payment hanging over my head each month, paying interest low rate or not given the 2017 modified SALT deduction is only $10k. AND to add insult to injury, its only a reduction and not even a partial tax credit. It just doesn't make financial sense.
It would make SLIGHTLY more sense if I did a rental property. But I will NEVER be a landlord in NYC for obvious reasons. This will be a first time home purchase for living.
Back to the monthly charges - Currently we pay just under $2k for a modern apartment monthly, with a $400-500k max budget for purchasing, I'd probably be looking at a pre-war or older construction and pay $750-1k monthly all-in for carrying charges and property taxes etc, with no mortgage.
If I can get the same formerly $450k property at a steep discount due to the market at $350k for all cash it might be worth considering. At minimum I'd want to sell at break even after 10 years if I want to move somewhere else down the road.
A $100-150k discount would make a $1k carrying charge more acceptable to me but some may say I'm dreaming...
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