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Not sure what that does. You’ll still be paying 12000/yr in NYC income tax. The number 1 offset to Home ownership costs/prop taxes outside the city is that you don’t have to pay nyc income tax. Excluding the schools of course. And I think the breakeven own/tent is 7 yrs in BK and Queens, if that is why you’re referring to 7 years.
It’s easy to find a rental. If that’s the path you want to go for the interim, you could always rent/keep your 1 bdrm in Manhattan, then rent a 2 bdrm outside the city post baby for a couple years if need be before buying a house. Or just buy a house at that point in time.
Unless you can afford to live in Forest Hills Gardens, scratch Forest Hills off your list. Anywhere in Westchester is going to be better than in Forest Hills.
I would rent until you were pregnant / baby needed schools. The difference in commute is not enjoyable. You’ll be spending 30k a year in taxes such that 60% goes towards schools...in exchange for tacking on an additional 1.5 hrs of R/T commuting a day EACH over your existing commute. Or live in Greenwich and pay half in tax but 2 hrs of additional commute. Neither option makes sense in your current position. Even if you conceived on your wedding day in mid 2019, you won’t need schools for 4 years from now. Enjoy the conveniences of the city while you can.
We moved in our early 30s pre child in 2016. Prior to that we were renting in UES. We now have a 6 month old 2 years later. We have paid 60k in taxes so far, and will pay another 60k-90k in property taxes until we need the schools. Our property has appreciated maybe 10% in 2 years, and our jumbo fixed 30 year loan was 3.375%. That was the only reason we did it. If we were in the same position today, 4.7% rate, higher home prices, there would be very little to incentivize us to make the same move prematurely.
Property values keep going up. Avg home in Westchester is going to be $650K soon and outdated B/C 2 bedroom condos with 0 amenities are selling for $600K because of the property tax loophole. It's why people are buying now before they get priced out aka Brooklyn (the gentrified parts of BK). Brooklyn use to be cheap couple years ago.
Anyway, they can afford a $1.6m house and nothing more.
Now about your age and in this age discrimination climate, I'd caution taking on such a huge inflated expense. Better off waiting, until the next economic downturn. In 2012 some homes lost as much as $300K in value only to get it back 6 years later.
I would buy in Queens if I were you. The market and potential are much better there. You may even make a profit on your condo whereas you are guaranteed to lose money after Westchester property tax is factored in. Buying a home in Westchester is not a sound monetary move, but it may be a good lifestyle move if you like living in such environment, and or have multiple kids in public school. Generally I don't see much upside in Westchester but there are lots of upside for parts of Queens and Brooklyn near transit.
Regarding Greenwich, parts that are comparable to top tier Westchester towns will have higher home prices but lower tax. With everything factored in, I think Greenwich is slightly cheaper but has longer commute.
Someone mentioned 1.6m above. You work in finance so you probably don't need to hear this from me, I would never buy a 1.6m home while earning only 400k and with only 250k for down payment. I would keep it under 1m, and even lower if buying in high tax towns.
Unless you can afford to live in Forest Hills Gardens, scratch Forest Hills off your list. Anywhere in Westchester is going to be better than in Forest Hills.
This cannot be further from the truth. Forest Hills is a lot nicer than most parts of Westchester. This ain't 1980s folks. Queens is now highly desirable, so much so that even Amazon wants to be there, after looking all over the country.
Now about your age and in this age discrimination climate, I'd caution taking on such a huge inflated expense. Better off waiting, until the next economic downturn. In 2012 some homes lost as much as $300K in value only to get it back 6 years later.
I would caution against trying to time the market. It's a fruitless exercise.
Westchester prices are high. There is no denying that. In my opinion, this is due to two major benefits: transit and schools. Metro North is the most reliable public transit system in the NY area. Ask anyone who has had to rely on LIRR, NJ Transit, or the subway system; the latter two are particularly horrendous. Westchester also has some of the best public schools in the nation.
Those factors make it an ideal destination for those working Manhattan with kids (especially dual families, which are becoming the norm). You get a suburban setting and great education without a soul-crushing commute.
That is not to say that there isn't upside in other areas. However I do believe that Westchester is a solid store of value over the long-term.
Regarding Greenwich, parts that are comparable to top tier Westchester towns will have higher home prices but lower tax. With everything factored in, I think Greenwich is slightly cheaper but has longer commute.
Someone mentioned 1.6m above. You work in finance so you probably don't need to hear this from me, I would never buy a 1.6m home while earning only 400k and with only 250k for down payment. I would keep it under 1m, and even lower if buying in high tax towns.
Agreed. 1.6 means a 1.35 mortgage. At 4.5% rate and taxes of 2.0-2.5% of Home value, insurance, the monthly nut would be 10k. 120k per year for housing costs, not including upkeep and maintenance and improvements. On 400k salary, combined, that’s insane, especially factoring in fed and state taxes and higher taxes on finance bonuses.
both of your incomes probably are weighted towards finance bonuses. You’d be living in the red 11 months out of the year just to pay your bills. With no kids. I would circle 800-1.0mm with Westchester taxes, and maybe 200k more in Greenwich with less tax
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