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I was in the city (Fort Lee, NY) area for the last few years. My rent was going to be raised 15% last May, so I opted to move and buy a house in Stony Point, NY. I saved up a lot of money over the last 12 years, so I was fortunate enough to pay cash. Now, in retrospect, I think I may have made a mistake. Overall living expenses have gone down by half. Since I work at home, there is no commute to the city every day either (web site designer). However, Stony Point, NY is at the top of Rockland County. I am the youngest single person up here (I'm 30). The house and area is beautiful, but its near in possible to find a social life here. I have to either go to Westchester or down to the city. None of the people I know really want to come up from either place to my house either.
So the big question is, should I sell the house and move back down to the city? I would not loose on the house, as I got it for below what it originally sold for back in 2005. After commissions and moving costs, I figure I will be about 100k positive on the house. Parents think I should stay in Stony Point. Not really alone, as I don't mind being alone. So that is not it. More often just bored out of my mind.
Things to consider:
1) I have a car. Parking in the city is expensive.
2) Cost of living expenses from Stony Point and the city are way different. Taxes and utilities are around 2k per month here. I would think I could do the same or better in the city no?
3) Owning vs renting. Owning outside of the city makes sense. Does it still make the same sense in the city?
4) Upkeep on the house in the summer time is expensive. Since it is 2.5 acres, it costs about 150.00 a month to cut. I have tried to do it myself, but the lawn does not end. Pool maintenance/energy/water is another 200 a month; which I do all myself.
I guess the thing is I am not as happy as I thought I would up here. Then again, not sure if I will be happy in the city either? I mainly moved up here to lower my costs of living, which I have done. But, I guess at what TOTAL cost have I paid?
Trying to get a few unbiased opinions here. My brother and sister thought I was crazy to buy the house. I guess, the really motivator in the move originally was cost. And I love the house, just wish I was not so far away from everything. I mean, I am not an invalid. To get anywhere takes a good hour to the city. About 40 mins to White Plains, NY.
Yes, Rockland can be an adjustment. The property taxes, utilities, commute and standard of living can take their toll on a homeowner, if one is not used to and prepared for it.
I cannot judge whether or not you made a mistake. I can say this: Look for places in Rockland that have some type of activity on weekends. Nyack has a nice intersection of Broadway and Main, and has a diverse group of shops, restaurants and bars. And the Palisades Mall, also in Nyack, has a couple of restaurants and bars there as well. Nyack is about 20 minutes from Stony Point.
My suggestion would be to make a list of all things, pro and con, about moving back to the city v. staying in Rockland. Staying in Rockland may have more peace and quiet and, for you, an affordable mortgage. On the other hand, there are long commutes, extensive home maintenance, property taxes and utilities one has to deal with in that county.
Being in New York has the walkability, amenities, closer access to nighlife and public transit. Trade that off with traffic and parking (you said you own a car), crime, depending on the neighborhood (although that happens in Rockland, too!), and more money for less housing space!
A former classmate of mine lives in the Bronx, but rents out her property in Middletown. If you go the route of renting your home out and moving back to the city, make sure you; 1) know all there is to know about landlording; 2) screen your tenant carefully and rigorously; and 3) have a positive cash flow on your property v. the total costs of the place in the city where you would be living.
Whatever you do, make sure you make decisions carefully and wisely. And make sure you prepare yourself for the tradeoffs of your decision. Peace.
Just curious.... how did you calculate that moving from a rental in Fort Lee,NJ to owning a house in Rockland (or owning a house anywhere) "lowered your cost of living?" With taxes ,maintenance and other costs of homeownership I don't see how that is even possible unless it is because you paid cash and have no mortgage payments and are comparing the rental figure to the costs of maintenance of the house.
If that is the case,it is a false comparison to begin with. You could have bought an identically priced co-op or condo ( cash,no loan) and be in a situation with compatively miniscule utility bills,much lower taxes and monthly maintenance with no need for a car or car insurance and 8.5 million people to engage with.
I live in a co-op in the city but have owned a house and am looking to buy a little get away place soon,maybe in Columbia County.I have never viewed house ownership as a way to lower living costs.Houses are money pits and the taxes and maintenance on even the least expensive are pretty steep. Last time I owned a house my hardware store bill was $200.00/mo .I also spent at least $500.00 on owning,maintaining ,insuring and putting gas into a car which I included as a cost of house ownership because it was the house that made the car necessary.May not be totally fair but when you live in the city you see how unnecessary a car( and the expense) is ...unless you live someplace that makes it necessary.
The real estate taxes on a $400,000 house ,condo or coop in NYC may be around $4,000/year.The taxes on a $400,000 house in most of the surrounding areas( including most of Rockland I think) could be anywhere from $10,000 to $25,000/yr.
Yep, take the mortgage equation out and that is how it is lowered my cost of living. My apt. in Fort Lee was about 2500.00 a month. In comparison, my monthly expenses are much lower. The house is pretty new, so the expenses are pretty low. Utilities are about 100 more a month + 20.00 a month for water. Taxes are about 1500.00 a month. Really not sure what to do. On one hand, I really was happier in Fort Lee, but the expenses were crazy. Here, the expenses are controlled, but social life for a single guy is nil. Space, have plenty of it. North of 4000 sq. feet. A lot used for work. Space in Fort Lee, 1000 sq. ft. Much more cramped in Fort Lee, but again, there was something to do. Since I own two cars outright, there really is no monthly expense for them (one I work on as a toy project. Other is for work.). Fuel is MAYBE 100.00 a month; if that.
Then again, being stuck on an island with no way to get out aside from buses and trains (I'm claustrophobic), not sure if I like that either.
Wish there was a way to have the best of both worlds.
Still think your "savings" is bit of an illusion.Since you bought the house with a pile of cash you must now be without whatever income that pile was generating.Seems to me there is a possibility that the money could have generated enough income to pay all of the rent or most of it.
And how do you light up and A/C a 4,000 sq Ft house on $100.00/mo? Doesn't seem possible to me. Maybe you aren't doing a realistic job of analyzing what is coming in and what is going out. There must be some expenses tied to two cars above $100/mo for fuel even if there are no loans. What about insurance,etc?
Aside from all of the above, it sounds like you have created a sort of prison palace for yourself up there in exurbia and I'd seriously think about closing it down and moving back to civilization.Sounds like you have the money to do almost whatever you want so why even get bogged down in all this controlling expenses,etc. Not suggesting that there shouldn't be some constraints but really,life is too short. You have to find a better balance.Just be thankful that you have the means to change your circumstances.A lot of people don't.
I'm starting to read "Buy it, Rent it, Profit!" by Bryan Chavis. Very good, so far! It talks about how to become a landlord and to use your property as an investment. I said in the other post, an option would be to rent out your property and move back to the city. Just learn all there is to know about landlording and choose your tenant wisely.
Just an option.
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Last edited by Viralmd; 11-27-2009 at 10:05 AM..
Reason: Copyright violation
Just curious.... how did you calculate that moving from a rental in Fort Lee,NJ to owning a house in Rockland (or owning a house anywhere) "lowered your cost of living?" With taxes ,maintenance and other costs of homeownership I don't see how that is even possible unless it is because you paid cash and have no mortgage payments and are comparing the rental figure to the costs of maintenance of the house.
If that is the case,it is a false comparison to begin with. You could have bought an identically priced co-op or condo ( cash,no loan) and be in a situation with compatively miniscule utility bills,much lower taxes and monthly maintenance with no need for a car or car insurance and 8.5 million people to engage with.
I live in a co-op in the city but have owned a house and am looking to buy a little get away place soon,maybe in Columbia County.I have never viewed house ownership as a way to lower living costs.Houses are money pits and the taxes and maintenance on even the least expensive are pretty steep. Last time I owned a house my hardware store bill was $200.00/mo .I also spent at least $500.00 on owning,maintaining ,insuring and putting gas into a car which I included as a cost of house ownership because it was the house that made the car necessary.May not be totally fair but when you live in the city you see how unnecessary a car( and the expense) is ...unless you live someplace that makes it necessary.
The real estate taxes on a $400,000 house ,condo or coop in NYC may be around $4,000/year.The taxes on a $400,000 house in most of the surrounding areas( including most of Rockland I think) could be anywhere from $10,000 to $25,000/yr.
great post....thats why for me i stopped drinking the kool-aid and abandoned the thought of buying a house....if i did, i would rather be a DIY kinda guy, but i had to be honest with myself - im too lazy for that! plus maintaining a home is expensive; it adds up. at least where im at now, i call the office and maintenance comes to address the issue. keeping up a co-op apt is decidely easier for me; it fits into my lifestyle. putting up a shelf or 2 is good enough for me lol.
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"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
Yea, man. Move back to the city (or, a city) and don't move back to the suburbs until you're married and have a kid or two. But, even then, it sounds like you're just a city person so you might not ever want to move out to the burbs...
You can absolutely rent a nice place for less than $2500 (especially if you're willing to live in a place like Ft. Lee) or you can buy a place with the money from selling your rockland house off.
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