Is it time to buy in NYC??? Hell's Kitchen especially I have 100K cash HELP!!!!

Invest your cash with me. I will give you 12% returns each year.

Hookers and blow.

Seriously, wait 6 months and check back then.

give it to me... I'll double it...

now can someone give me $400K? then I'll double that too...

If you want a studio, then 100K will get you it. If you want a place where you'll live for more than a few years, you'll definitely need more money than that in the bank.

so how much realistically for a long term purchase? my stats 150k in bank, 150k/yr salary, otherwise completely debt free.

With a flexible board, you should be able to get a $600K apartment with maintenance of about $1,000. All boards want to see liquid assets after closing. With $120K down and closing costs approx $11K, you'll be left with $19K in the bank. If you have money in your 401K/IRA, that will help a lot.

Maintenance $1,000 + Mortgage $2,600 (30 yr fixed $480K at 5%) = $3,600

Lenient boards usually are looking for 1/3 gross of income to go towards housing. $3,600*12 = $43,200 * 3 = $129,600 minimum salary requirement.

I was going to say something with a "5" handle, but I'm pretty conservative and was assuming you'd want to keep more of a cash cushion.

We discussed this a bit on this thread:
http://www.streeteasy.com/nyc/talk/discussion/10999-actual-liquidity-needed

thanks for the advice. VERY helpful as I am conservative too. hopefully when i'm in for the real deal i'll have more like 200K+ in the bank. i'm 30 yo, only have about 70k in 403b's and about 15k in taxable mutual funds. i'm figuring i can wait the market out based on what i've been watching!

i agree with west81st, but i'm very cautious. happy window shopping.

after i put it in and looked at it, i should have said a VERY flexible board :-)

with 35-40K left would make your approval process much smoother.

"With a flexible board, you should be able to get a $600K apartment with maintenance of about $1,000. All boards want to see liquid assets after closing. With $120K down and closing costs approx $11K, you'll be left with $19K in the bank. If you have money in your 401K/IRA, that will help a lot. Maintenance $1,000 + Mortgage $2,600 (30 yr fixed $480K at 5%) = $3,600 Lenient boards usually are looking for 1/3 gross of income to go towards housing. $3,600*12 = $43,200 * 3 = $129,600 minimum salary requirement."

Carrying a nearly a half million mortgage on only $130K salary is extremely tight. The rough rule of thumb of affordability is you can afford to carry a mortgage that's twice your annual salary. Your example is more than FOUR TIMES his salary.

I can tell you as a board member, I'd disqualify him on that fact alone.

NICE NICE nycmatt.... gotta love individual freedom to hang yourself on debt.... just don't ask me to "bail" the NYTimes reporter out for his 6x leverage vs. income.... Do not go pass GO.. Go directly to debtor's prison....

The guy (gal?) makes $150 and is mortgaging $480. My math says that is about 3.2 times salary. I am board treasurer at my building and my response (pending other factors) is "Approved".

"The guy (gal?) makes $150 and is mortgaging $480. My math says that is about 3.2 times salary."

That's 1.2 times more than he can afford.

You're not doing anyone any favors by voting "approved".

NYCMatt, this is something we totally agree upon. I am very uncomfortable with more than 2.0 times. In very good times (and with very low interest rates) it doesn't seem so onerous, but the one time I did 2.5 times 09/11 happened and law firms cut their "bonuses" by two-thirds. That was expected income at the time for us, and it was the private school tuition. I'll NEVER do that again.

I guess Matt thinks that he's on the UWS not WH....

Considering that after taxes, this place will cost less than $3K per month (having maintenance at about 30% tax deductability), he should be approved with any reasonable board.

if matt says no, the answer is easy: "yes."

"Considering that after taxes, this place will cost less than $3K per month (having maintenance at about 30% tax deductability), he should be approved with any reasonable board."

It is foolish to factor in your tax deductibility in terms of your monthly outlay for housing costs. Tax refunds are fiscal gravy, not the meat and potatoes of your household budget.

foolish to listen to matt...much more foolish.

cc, i'm still pissed at you so i'm not engaging. but let's think about this. let's say someone makes $150k. taxes are going up hugely, but let's say they wind up in the 30% camp including deductions, which I think is reasonable (actually hugely not reasonable but where I think a single might be at this income here in a year or two, which is the sense I'm getting here, correct me if I'm wrong). So they have about $100k after taxes or $8k a month. Why in the hell would you want to pay almost half of your take home on housing? Now?

"Considering that after taxes, this place will cost less than $3K per month (having maintenance at about 30% tax deductability), he should be approved with any reasonable board."

Another consideration: $150,000/year is roughly $80,000 NET annual income. That's just under $6700/month. Using ab's calculations of a total of $3600/month total carrying costs for an apartment puts the candidate at forking over more than HALF of his monthly income for housing, which is a terrible multiple by any reasonable calculation.

Put another way:

Week 1: $1675 paycheck -- goes directly towards housing.

Week 2: $1675 paycheck -- goes directly towards housing.

Week 3: $1675 paycheck -- $250 goes directly towards housing.

At best, you're looking at Tuesday of the second to last week of the month before you can start paying for insurance, utilities, and food.

It's amazing how quickly the month goes by when you're cutting it that close. God help you if you lose your job, or your forced to take a cut in pay.

well...you know my position in general....i don't think anyone should buy at this point in time. but, if he insists on buying his situation is probably better than most.

why pissed?

Frankly, CC, I don't know why anyone WOULDN'T be pissed at you. But that's just me.

frankly, matt, you make me sick.

The feeling is mutual.

cc, last night was the W&R get together, and both you and JM stood me up. i was mortified.

matt, usually i'm pissed at you, but that's just me. today we agree.

If you're paying 46+% in taxes on $150K salary, you're definitely not living in NY or USA for that matter.

You should be bring home at least 90K ($1,730 per week) and that's low. This way 50% of your net income goes towards housing.

Let's not forget that every year, you will be getting the $7,700 tax return just from the mortgage and taxable portion of maintenance deduction. That's 2+ monthly payments right there.

ah....sorry, I had a great excuse.

100K does not even cover clsoing costs on most decent places....

ab, those were my figures, if you'll take a look see. 50% of net doesn't do it for me any more (actually it never did, i stretched my one and only time). Not with other fixed costs such as education and health care skyrocketing beyond belief, and food and gas right there with them. If you're single, intend to stay single, never intend to have a relationship that might in the slightest way become dependent, maybe. But why? Really, why would you devote 50% of net to where you need to sleep?

"You should be bring home at least 90K ($1,730 per week) and that's low. This way 50% of your net income goes towards housing."

AB, even assuming your numbers are correct (which they're not - at least for me - after all the dust settles I pay like 46% of my total income in federal, state, and local taxes as well as FICA) ... 50% of take-home pay for housing is fiscal suicide, by any measure.

this is why i cannot stand you...you make up whatever numbers or facts suit you and when challenged, suggest that you're not interested in details. do you actually pay 46% in total taxes or like 46%? that would mean that you have no deductions, including local taxes. makes no sense, nor do yo.

46% is what comes out of my paycheck. That is my NET INCOME, which is what I have to pay bills with.

and this is just as true as your 1,700 square foot one bedroom for which you pay $500 in monthly maintenance?

CC, pull the bug out of your ass already. Seriously.

tell us again about your wonderful 1,700 square foot place.

you are the one citing the ridiculous facts, not me. you are the vp, the genius about building maintenance, the one with the ridiculous deal and the expert on sheer drapes.

Dude, you're getting almost stalker-ish.

nope...i just read all the nonsense that you spout. i never pretend -- i'm here just trying to figure it all out and people like you drive me crazy. you obviously live in a world of pretense; i do think that's a big part of what's gotten us into the mess we're in. anyone says whatever they want and it becomes a fact.

I "spout" only the truth.

check out your star rebate program info...very helpful information that you are providing as usual.

You're welcome.

my take home pay is closer to 55%. but i take 10% into 401K, deduct the metrocard and $5K worth for day care and then another 2K for medical. that is my choice. on the other hand, i get back $8K non-taxed money back.

now take the $8K non-taxed $7K tax return = $15K. that's more than 4 months of house payments. now, even if you bring home $80K - (8 mos X $3,600) $28.8K = $51,2K or 36% of real NET INCOME.

i have to say, "I'm very grateful that I do not live in a building where the board members can be as pumpous as Matt is." It's time for you to move to UWS or UES, at least take some basic accounting/math classes. WH would expect more modest and reasonable people.