Cheaper than renting in White Plains (Franklin: for sale, apartments, rent)

[cynthia82]

Hi, I'm new to the area & just got a new job, and am looking for a nice place to live. I have seen some apartments for rent in White Plains & can't beleive the prices! Who in their right mind would rent a studio for $1200+ a month?

My dad told me to look into buying a co-op & I found some in White Plains, but am confused. There are a bunch of studios for sale in Bryant Gardens. Is that a nice complex? One is listed at just under $65,000 & has $532 a month maintenance. I think that would only cost me around $850 a month to own. Is my math right? What would be the benefit of renting when I could own a place for only $850 a month before the tax savings?

Thanks for the help,

[GENE CASEY]

If you can afford the down payment and monthly maintenanceit's much better to buy rather than rent. Also part of that maintenance is tax deductiable as is you co-op loan which increases the savings. Bryant Gardens is a very nicee place to live and is one of the few co-op complexes that has free parking on site which is rare in White Plains. I have sold many units ther and it always has been a good move!

[tommya]

I had a buddy that lived in Bryant Gardens. It's nice. It also has more private parking than just about any other complex in White Plains, which is a real plus. In my opinion, the problem with Bryant Gardens comes when you're trying to sell. They have a bunch of identical studio and one bedroom units, so if you're neighbor cuts his price you have no choice but to do the same. Of course, the flip side is that this makes buying a unit cheaper and I think that's what you're seeing now.

All that being said, even if you take a 20% lose when you sell the unit, the lose would be around $13k. The $850 your paying a month is $350 less than your $1200 alternative, and these savings would total $13k in around 3 years. If it were me, I'd add another year and consider 4 years to be my conservative break-even point and would go with the Bryant Garden coop if I saw myself staying put for longer than that.

[Angelo 0608 KW]

I am a Realtor and agree with tommya. Can't go wrong buying a co-op these days vs renting, it's cheaper and makes more sense. Good luck.

[Robert5819]

I am looking at a studio on Franklin Ave. Nice area but maintenance is $690. Is that out of line?

[rubygreta]

Only buy if you plan to stay in the unit for five years. Otherwise, why go through the hassle. I doubt there will be any significant price appreciation for studio apartments.

[Robert5819]

Thanks - We were looking at (3) years and it works out ok, but you are right between moving costs, app fees, inspections, etc. it takes (5) years to make it a good deal.
Just wondering if 690 is too high for Franklin Avenue building or somewhat in line.

[sezzam]

Originally Posted by GENE CASEY

If you can afford the down payment and monthly maintenanceit's much better to buy rather than rent. ...

Absolutely. Also, add the cost of closing at buying time (about 3% of purchase price) and selling time (about 8%). The exact amounts depend on transfer tax, flip charges, loan, etc. (so, please don't hold me to these numbers). Also add the opportunity cost of the upfront investment.

Originally Posted by GENE CASEY

...Also part of that maintenance is tax deductible as is you co-op loan which increases the savings...

Not necessarily. At 20% down and a 4.625% 30-year mortgage, and if 50% of the common charges are towards property tax, the interest portion and the property tax together will be about $5580 which is less than the $12,400 standard deduction. So, unless you have another $6800 or so qualifying itemized expenses, you will be better off taking the standard deduction.

(I hope you get a 15-year mortgage, or better yet buy with cash. FYI, the tax-deduction scenario is unlikely to change even with a 15-yr mortgage.)

Regardless, at the numbers you have presented, all else being equal, and making many many assumptions, you might be better off buying this unit than renting at $1200 a month.

Finally, don't compare the unit for sale with another unit which costs much higher monthly rent. That is, think about how much does the unit rent for, if you were to rent it instead of buying it? Are you willing to risk your down payment and the monthly commitments in order to potentially save?

[ShouldHaveLeft914]

Have you also considered a 1BR?

20% down?
On $70k studio, that's $15k
On a $150k 1BR, that's $30k

A studio co-op sounds like it will run you $900/mo.
A 1BR co-op sounds like it will run you $/1300mo.