How expensive is buying and then selling?

http://www.youtube.com/watch?v=l91ISfcuzDw

10% or about 6% brokers, 2% flip tax, 1.425% transfer tax, $3,000 lawyer, and another $3,000 for incidentals (other taxes, coop fees). This doesn't consider any of the tax benefits you will have received on interest deductions and other tax benefits of ownership. FYI: Manhattan is up over 50% in the last decade based on price per foot, even after the hit Manhattan took from '08/'09. But considering median sales price, the price has more or less doubled in the last decade. Real estate is the inflation hedge, and you should expect appreciation as money steadily devalues. There is also a neat little concept called 'the mortgage tilt,' which is the way that leverage allows income earning real estate owners to reduce their housing debt to income ratio over the course of ownership and effectively bank income the longer they own the property. Obviously, that assumes that your income grows over time and your mortgage is fixed. Hope this helps. whobbs@evansnye.com

mansion tax is omitted from above and paying the lawyer twice. all said and done closer to 12%.

I dont understand why so many people confuse "loose" with "lose". Normally, I would not care, but when the discussion revolves around buying and selling real estate, and making or losing money, I have to laugh that the OP makes this mistake. It is one of those times that I hope pyxis considers this a signal of guidance, of some sort.

remember also that, whomever is paying, the transaction costs are attached to both the purchase and sale.

amd also that with a condo, often bought specifically because one can have a sizeable mtg, there is the very costly mtg recording tax.

recall also that the ny re mkt declined 40+% from fall 87 to late 88, declined 30+% from late 07 to mid 09, and declined 40+% in 74 and sat on the lows til 1979.

just saying, as long as we have a keysherpa here citing past market conditions.

take care before you buy real estate with leverage. it's illiquid, involves huge transaction cost, and is as vulnerable to downturn as any asset class.

>>I dont understand why so many people confuse "loose" with "lose".<<

Ah, but 'loose' could actually work in this instance if OP intends to ask how much money he would have 'set free'. Loose the hounds! Loose the money! ;-)

Nice save, bramstar. What about "whomever is paying"?

Don't even get me started on the whom/who, whomever/whoever rant, Boss ;-)