Renter=sucker: Owning a midtown studio = $950/mo

em ok spend 200k on a walkin closet of 200sq ft. real smart.

The 2% annual appreciation is a flawed metric but I think he hit the nail on the head when it comes to not having to worry about a lease.

Yes, that is the only flaw I saw, as well. $900 + tax breaks. Not bad.

Tax breaks? How much do you think this guy makes and how many deductions over the standard?

Isn't that Stevejhx in the picture. Never knew what he looked like but now I do. Well in any case, congratulations Stevejhx! I hope you enjoy your new studio. BTW nice outfit you picked out but not sure I like your pose.

I live at my office - I pay no rent or anything else - in fact, I GET PAID to live there! Who's the sucker now, sucker?

BS if you live in your office then you are the sucker or should I say schmuck.

Well when the kid outgrows the studio he can rent it out for around $1,600/month.

Not a bad move at all.

"Well when the kid outgrows the studio he can rent it out for around $1,600/month."

Did you READ the article? Its a coop. The previous owner, as with all coops, could only rent it for a limited time.

With all the money he saves in his 20s (compared to broke renters), he'll be buying a nice house in the suburbs after he's done with NYC.

"The previous owner, as with all coops, could only rent it for a limited time."

Careful there, jason. That's just not true. There are many flavors of co-op sublet policies, and many co-ops do allow unlimited subletting. I went to an open house over the weekend where the co-op allowed unlimited subletting after three years of ownership.

I think he did great. The place looks clean and sharp now, and will probably not be as difficult a resell down the road as it was for the previous owner. He may make a little, he may lose a little, but for someone in their mid-20's doing it on their own, it's a great first step into understanding how real estate works. The education alone will better prepare him for his next eventual move, and he'll be all the wiser. Well done.

Jason: It's a co-op in Tutor City, where sublets abound.
(former CH agent here, I've shown enough apts there to know.)

Tudor*

"Jason: It's a co-op in Tutor City, where sublets abound. "

And yet the article makes it clear that THIS unit has time limits on renting the place out. This is not a hypothetical question.

And eye dont care if u muspel

jason10006
about 10 hours ago
ignore this person
report abuse "Well when the kid outgrows the studio he can rent it out for around $1,600/month."

Did you READ the article? Its a coop. The previous owner, as with all coops, could only rent it for a limited time.

This is Tudor City. Very easy to sublet there.

"Tudor City’s tiny studios were priced in the low $200,000s, but one, all of 203 square feet and advertised as a “small studio” that “needed work,” was just $199,000. Maintenance was a little more than $400. The seller, who had been subletting the place, could no longer do so, according to the building’s policy."

Never mentions a specific time frame, very very easy to rent these apartments for multiple years at a time.

jason10006 I see your point but you must know that Tudor City is full of rentals!

I'm not sure what the exact policies are... but the it's safe to say the kid in the article can definitely rent his out (no, prob not indefinitely) after living there for a few yrs.

http://www.tudorcity.com/Rentals.html

Hmmm...$200K for 200 sq ft in NYC or $200K for 1500 sq ft anywhere else in the country [other than CA]. Which to pick?

No wonder people that live in NYC are all in favor of welfare - they're all broke after paying absurd amounts for housing!

BSexposer. I love your screen name.

I don't see how this is typical of anything even if he can rent it out for 10 years at a time. Anyone can do a the price to rent ratios and see (as Schiller, JMiller, and others have done for us) that NY, like SF and a few other places, is much more expensive to buy than to rent UNLESS you assume home prices will go up for many years for much faster than other potential investments.

Am I missing something... or did everyone completely forget about a down payment?

He's lived for $950/mo, and is sitting on a $50k windfall.
For doing nothing but living below market.
LOL, the awesome irony....