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well i dont want to turn this into a financial discussion but make sure you keep in mind as much money as you withdraw a year to live on when you first retire you will need to be able to withdraw 2x that after 20 years accounting for a mere 3% inflation.....
the retirement grave yard is full of failed retirements because folks thought they could pull all of that 4 or 5% interest they were getting without growing their nest egg by the rate of inflation too...
to withdraw a 4% withdrawl rate inflation adjusted by 3% every year takes an average 7% return.....
whatever you plan on using as your investment vehicle just make sure the long term return you need can be inflation adjusted and gives you the return you need .....
Of course its cheap in those areas.... they are too far & nobody wants to live there! Its a 2 fare zone.. not to mention
Quote:
Originally Posted by UpstaterInBklyn
There are plenty of 1BR co-ops for under $150K in my part of Brooklyn (Marine Park/Gerritsen Beach/Sheepshead Bay). 2BRs for less than $200K. These are well-maintained places in a very safe neighborhood. At these prices you can own cheaper than renting, if you have the downpayment.
If you buy a $140K co-op and put 20% down, the mortgage payment is less than $800/mo. Add the co-op fees and it almost certainly comes in at less than $1200/mo. total.
That is what I am finding. I mean it almost doesnt make sense to stay here. The amount of space you get for your money is a joke. Maybe if you decide to travel to LI or SI you might find some solace. But idk for me the thought of living somewhere else is just as hard as realizing i will never own a house here. I guess i'm just crazy like that...
That is what I am finding. I mean it almost doesnt make sense to stay here. The amount of space you get for your money is a joke. Maybe if you decide to travel to LI or SI you might find some solace. But idk for me the thought of living somewhere else is just as hard as realizing i will never own a house here. I guess i'm just crazy like that...
You're feeling what thousands in nyc are feeling and they are coming to the same realization that you are: it might be best to move, but the grass is not always greener...
We own a home in the downtown Brooklyn/Boerum Hill area. I agree that it is very difficult to buy real estate here unless you're a Trustafarian, which we're not. We moved here in 1982, rented in Manhattan until 1986 when we bought a co-op apartment in Park Slope with a 10% downpayment. My mom did help with the closing costs (we paid her back).
Our son was a year old when we moved there. A few years later, we had a daughter and started to outgrow our 2-bedroom duplex apt. We were forced to stay there because of the real estate situation in the late 80's/early 90's. In 1996, things started to turn around. We put our co-op on the market. In the meantime, we'd been saving like mad and had an $80,000 downpayment to put down on a house. We sold our apartment for just a few thousand more than we'd bought it for 10 years earlier. Then we had to find a house in a hurry! Park Slope was already too expensive - all the places we could afford were dumps that would take too much $$$ in renovation.
We found our house in Boerum Hill when it had been on the market for 3 days. It's a triplex with a garden rental which of course helps with the mortgage payment! I would recommend that configuration to anybody looking to buy NYC real estate. In October, we will have been here 13 years and in 3-1/2 years, our mortgage will be paid off. Real estate taxes in NYC are negligible. I think ours are around $3-$4K per year. Of course, you get what you pay for in many respects!
I'm not sure what our house is worth in today's market, but it has at least tripled if not quadrupled in value since we bought it. Of course, to us, it's not an investment, it's a home - but it's still nice to know that we have substantial equity. I guess the moral of my story is that it is possible for middle-class people (by NYC standards) to buy NYC real estate. Start out small. Buy a co-op or condo in an up-and-coming neighborhood. If you stick it out long enough, you'll be able to trade up.
I realize it's tougher now than it was when we started out 20+ years ago, but with the real estate market tanking, I think there will be good opportunities to buy.
well i dont want to turn this into a financial discussion but make sure you keep in mind as much money as you withdraw a year to live on when you first retire you will need to be able to withdraw 2x that after 20 years accounting for a mere 3% inflation.....
the retirement grave yard is full of failed retirements because folks thought they could pull all of that 4 or 5% interest they were getting without growing their nest egg by the rate of inflation too...
to withdraw a 4% withdrawl rate inflation adjusted by 3% every year takes an average 7% return.....
whatever you plan on using as your investment vehicle just make sure the long term return you need can be inflation adjusted and gives you the return you need .....
I appreciate your advice. I do not believe in 401ks but I do have one through my employer. I also have a small pension through my previous employer. I am intrigued by these index funds. Thanks.
That is what I am finding. I mean it almost doesnt make sense to stay here. The amount of space you get for your money is a joke. Maybe if you decide to travel to LI or SI you might find some solace. But idk for me the thought of living somewhere else is just as hard as realizing i will never own a house here. I guess i'm just crazy like that...
You are right this is the reason I left NYC 2 years ago. Was tired of the cold winters, expensive rents for shoe box size apartments located in mediocre neighborhoods, quality of life was not good. Also knew that I would spend the rest of my life renting apartments if I stayed there and homeownership became important to me. My mother, grandmother and brother are all still living there in Brooklyn and the Bronx.........everytime they visit me here in South Carolina they never want to go home.
Believe me you get soooooo much more for your money living in other states. I now own a 4 bedroom, 2 1/2 bath, 2 car garage home that sits in a golf course community with in ground pool.........purchased for under $180k! Was born and raised in Brooklyn so NYC will always be my home but it is better to visit then to live there.
You are right this is the reason I left NYC 2 years ago. Was tired of the cold winters, expensive rents for shoe box size apartments located in mediocre neighborhoods, quality of life was not good. Also knew that I would spend the rest of my life renting apartments if I stayed there and homeownership became important to me. My mother, grandmother and brother are all still living there in Brooklyn and the Bronx.........everytime they visit me here in South Carolina they never want to go home.
Believe me you get soooooo much more for your money living in other states. I now own a 4 bedroom, 2 1/2 bath, 2 car garage home that sits in a golf course community with in ground pool.........purchased for under $180k! Was born and raised in Brooklyn so NYC will always be my home but it is better to visit then to live there.
Different strokes for different folks. I said the same thing about 6 years ago. I left Brooklyn and came down to Georgia looking for lower cost of living an affordable house and nice back yard for the kids to run around. Life has been a rollercoster for us. I came to realize that I should've have stayed in NY and bought a house somewhere upstate, LI, CT, or Jersey. Georgia's government and people live alot in the stone age. B4 the big mess we're in now you could've afford to buy a decent house down here when the economy was good but the jobs were not enough. Anyone can buy a house in NY as long as they have a plan and save. I know quite a few people who have bought homes recently in the Boroughs, LI and upstate. The lower cost of living down south is so overrated its sickning. You get paid a whole lot less so of course every thing else will be except food, and clothes. And lets not forget the right-to-work states down here. There are a lot of people who are afraid to speak up for them selves.
I am in the process of finding a job in NYC and believe you me, I will. Within a year or so of moving back we will buy another house, because I'll make sure we can afford one.
Last edited by Green Irish Eyes; 07-04-2009 at 02:50 PM..
Reason: No need for the inflammatory political statement -- thanks.
Different strokes for different folks. I said the same thing about 6 years ago. I left Brooklyn and came down to Georgia looking for lower cost of living an affordable house and nice back yard for the kids to run around. Life has been a rollercoster for us. I came to realize that I should've have stayed in NY and bought a house somewhere upstate, LI, CT, or Jersey. Georgia's government and people live alot in the stone age. B4 the big mess we're in now you could've afford to buy a decent house down here when the economy was good but the jobs were not enough. Anyone can buy a house in NY as long as they have a plan and save. I know quite a few people who have bought homes recently in the Boroughs, LI and upstate. The lower cost of living down south is so overrated its sickning. You get paid a whole lot less so of course every thing else will be except food, and clothes. And lets not forget the right-to-work states down here. There are a lot of people who are afraid to speak up for them selves.
I am in the process of finding a job in NYC and believe you me, I will. Within a year or so of moving back we will buy another house, because I'll make sure we can afford one.
I do not decide to live someplace based on other peoples ways or attitudes........I decide to live in a particular place because of the benefits that particular place has to offer. The people living Moderator cut: not necessary here in the south is just one of those things that you trade for the better quality of life, the nicer homes, lower cost of living and getting more bang for your buck. As far as getting paid a whole lot less.........that is very subjective depending on 1) the type of work you do 2) your education level 3) if you work for a big company in NYC and then transfer to their office in the south (this is what I did and they let me keep the same NYC salary plus threw in a few thousand dollars more to sweeten the deal). The money you make in the south really depends on your individual circumstances, as I mentioned I worked in Manhattan........transferred within the company because they also had offices in the south and was willing to let me keep the same NYC pay. So it was a win, win situation for me all the way around. My goal was to get a nice size house, backyard, good quality of living and more bang for my dollars..........I have accomplished that goal. As I said did not move here for the people, their confederate flags or conservative bible belt attitudes...........I live in my home and they live in their home!
I totally disagree with the statement "anyone can buy a house in NYC". Let's get some clarity on that statement. Those who have lived in NYC all their life and purchased their home 20 - 30 years ago then yes homes in NYC were a lot cheaper back then and therefore easier to buy and right now those people who purchased years ago are one of the small group of people in NYC that are in good shape right now.........by now they have owned their home for a long time, the house is paid off so when they sell the house they will get top dollar for it like all of the other greedy people in NYC. Unfortunately if you are a person like me who was just a kid 20 - 30 years ago and not old enough to purchase in NYC...........it is just too late now to buy anything there. I know many want to hold on to this illusion that by somehow killing themselves working and saving money that NYC is still a place where they can realize the dream of homeownership..........you are in denial if you believe that you will ever have a home in this city! Part of homeownership is actually being able to spend time in the home enjoying it...........how can you enjoy something when you are always working massive amounts of overtime just to pay for it!
A lot of your argument is based on the attitudes and ways of those living in the south. Well I must say this again, I don't move someplace based on the people. When I am tired of the people in the souths behavior I know how to get on a plane and go home to NYC to visit friends and family. There is always going to be a trade off in life..........no place on earth is perfect, if you are looking for perfection you will never find it and always end up disappointed! In the south you have to tolerate conservative bible belt people with confederate flags on their trucks...........in NYC you have to tolerate crime, trash on the streets, homeless people riding the subway and sleeping on the sidewalks and spending the rest of your life renting high priced apartments that most can barely afford. The only thing NYC has is jobs that pay well..........then again expensive cost of living = higher pay! They have no choice but to pay people in NYC a higher pay because otherwise no one would ever be able to afford to pay the expensive rent for the shoe box sized apartments in the mediocre neighborhoods!
NYC will always be the place I call home.........but I will not pretend that life is so great there because it is not. Life is only great in NYC when you are upper middle class or wealthy. NYC does not give a s--t about poor people or keeping things affordable so that those not making $200k + a year can afford to live there!!
Good luck wherever you decide to live.
Last edited by Green Irish Eyes; 07-04-2009 at 02:52 PM..
Reason: No need for the inflammatory political statements -- thanks. (Also edited quoted text)
It doesn't have to be the south. There is also the southwest, west, northwest, midwest... if the humidity or culture of the south isn't appropriate. Or even upstate NY.
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I bet it is cheap!
Of course its cheap in those areas.... they are too far & nobody wants to live there! 
Its a 2 fare zone.. not to mention
