I am looking to buy apartment in NYC, first time buying in NY (have bought other homes out of state but relocating). Would appreciate insight into what typically a buyer in NY would do with this kind of financial situation: Liquid assets available: 3M Expected income: 225 salary + 300 bonus currently we have been looking in tribeca area in the 3.0-3.5M range, but having a hard time finding... [more]
I am looking to buy apartment in NYC, first time buying in NY (have bought other homes out of state but relocating). Would appreciate insight into what typically a buyer in NY would do with this kind of financial situation:
Liquid assets available: 3M
Expected income: 225 salary + 300 bonus
currently we have been looking in tribeca area in the 3.0-3.5M range, but having a hard time finding anything exciting (have looked at Artisan Lofts a bunch of times but not sure if we want to wait 12 months for completion). We expected to put down 1.5M and get mortgage for 1.5M.
Having seen whats available, we are thinking of increasing the range we are looking in to 3.5-4M. Curious as to whether this would be perceived as prudent given the data above and how you would allocate the money given the income .. its obvious NYC market is very different than the rest of the country.
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Response by anonymous
almost 19 years ago
Posts: 29
Member since: Mar 2007
At that salary alone you'd probably qualify for a 1.5M loan, maybe more? I don't know. My salary is similar and that's what I qualified for. So putting more of the 3M down with adequate reserve after closing (1-2 years monthlies liquid) and taking out a larger loan is obviously going to get you a nicer space. You do get what you pay for, and at that price I have to say you'd be stupid to buy something you don't love, so if you aren't seeing it, I would look higher. It sounds like you can afford to. Interest only loans work nicely in bonus situations, since you can plunk down a big chunk right into the principal at the end of the year, instantly reducing the monthly payment (rather than the length of the loan, as in a conventional fixed loan, where pre-paying simply shortens the life span but doesn't change the payment). Most people don't have the discipline to drop the cash into the principal, which is why the interest only has a bad rep. Of course renovations etc. have to figure into this picture, too.
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Response by anonymous
almost 19 years ago
Posts: 631
Member since: Sep 2006
Yesterda's WSJ had a good article about large mortgage vs. lower payments and what could be a better overall investment. It was in the "Personal" section.
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Response by anonymous
almost 19 years ago
Posts: 3
Member since: Apr 2007
Is there a website that calculates the maximum amount of a "healthy" loan given salary, bonus, liquid assets?
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Response by anonymous
almost 19 years ago
Posts: 1183
Member since: Feb 2007
not really - they're all operating on bed input
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Response by anonymous
almost 19 years ago
Posts: 277
Member since: Jan 2007
you should qualify for much more than that; just secured $1.2M on $350K salary and bonus.
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Response by markznyc
almost 19 years ago
Posts: 277
Member since: Jan 2007
Have you taken a look at 200 Chambers? I think there are some 3BR in the $2.7M - $3M range left -- about 2300sft. Full service, great building. We just bought a 2BR and love it.
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Response by anonymous
almost 19 years ago
Posts: 118
Member since: Apr 2007
#7 - we are actually doing a 6 month rental of a 2BR unit in 200 Chambers starting next month as a temporary stopgap while we continue our search. We are excited, looks nice and we like the area but the wife was concerned about committing to a large purchase without actually living in the 'hood for a little while.
we'll be seeing you around i guess
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Response by anonymous
almost 19 years ago
Posts: 400
Member since: Apr 2007
#8-- does that make you a bitter renter?
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Response by anonymous
almost 19 years ago
Posts: 118
Member since: Apr 2007
#9: i don't know, maybe i will become bitter after i move in. What would you do?
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Response by anonymous
almost 19 years ago
Posts: 11
Member since: May 2007
Must be rough to not be able to find anything you like under $3 Million, and not know what to do about it.
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Response by anonymous
almost 19 years ago
Posts: 118
Member since: Apr 2007
yes - it simply makes me realize how low on the food chain i actually am in manhattan
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Response by anonymous
almost 19 years ago
Posts: 400
Member since: Apr 2007
if ur low on the totem then i'm a beetle infesting avalon chrystie.
At that salary alone you'd probably qualify for a 1.5M loan, maybe more? I don't know. My salary is similar and that's what I qualified for. So putting more of the 3M down with adequate reserve after closing (1-2 years monthlies liquid) and taking out a larger loan is obviously going to get you a nicer space. You do get what you pay for, and at that price I have to say you'd be stupid to buy something you don't love, so if you aren't seeing it, I would look higher. It sounds like you can afford to. Interest only loans work nicely in bonus situations, since you can plunk down a big chunk right into the principal at the end of the year, instantly reducing the monthly payment (rather than the length of the loan, as in a conventional fixed loan, where pre-paying simply shortens the life span but doesn't change the payment). Most people don't have the discipline to drop the cash into the principal, which is why the interest only has a bad rep. Of course renovations etc. have to figure into this picture, too.
Yesterda's WSJ had a good article about large mortgage vs. lower payments and what could be a better overall investment. It was in the "Personal" section.
Is there a website that calculates the maximum amount of a "healthy" loan given salary, bonus, liquid assets?
not really - they're all operating on bed input
you should qualify for much more than that; just secured $1.2M on $350K salary and bonus.
Have you taken a look at 200 Chambers? I think there are some 3BR in the $2.7M - $3M range left -- about 2300sft. Full service, great building. We just bought a 2BR and love it.
#7 - we are actually doing a 6 month rental of a 2BR unit in 200 Chambers starting next month as a temporary stopgap while we continue our search. We are excited, looks nice and we like the area but the wife was concerned about committing to a large purchase without actually living in the 'hood for a little while.
we'll be seeing you around i guess
#8-- does that make you a bitter renter?
#9: i don't know, maybe i will become bitter after i move in. What would you do?
Must be rough to not be able to find anything you like under $3 Million, and not know what to do about it.
yes - it simply makes me realize how low on the food chain i actually am in manhattan
if ur low on the totem then i'm a beetle infesting avalon chrystie.