100 Jay Street in DUMBO

Nice 421a tax abatement: $9 per month. Any idea what the taxes will be when the abatement ends?

600k for a studio seems insane, but the monthly payment with 20% down and 30-year mortgage at 5% isn't much more than rent would be. Factor in the interest deduction, capital gains exemption, future inflation protection, etc. and it's probably not a bad deal.

How is the noise from the Manhattan Bridge? Some other possible downsides include flooding and proximity to the Farragut Houses.

> 600k for a studio seems insane

I know!!!! Thats whats driving me insane. Also the fact that similar apartments went for cheaper this year.

This apartment is nice in the sense that it faces away from the bridge, so there is almost zero noise.

Proximity to farragut houses is also something I thought about, but its not that close, and there is a bunch of things in between. Honestly, if it was around 525K price point, I would take in a heartbeat!

Prices have been going up, so places getting more expensive does happen. It is 600sq ft, so price not crazy, but get a one bedroom instead.

> but get a one bedroom instead.

Would love to :) - but those are even more expensive..

@ottwanyc - I know prices are going up, but really - 514K -550K - for similar studio in the same building? Isn't that a bit much? Its a bit of a bubble, no?

Well rent then. People have been making same argument forever on here. Uncle Ben just gave you more incentive. Buy now or be priced out forever. (Or pick another neighborhood.)

The risk of flooding is greater than the risk that you won't recover your purchase price is 7 years.

for the same price i.e. $600K you can get a nice size one-bedroom on the UES.

No risk of flooding.

@ottawanyc - wasn't my point. Of course I can rent. My point was, is it a real appreciation (in the last two months) or is it just a bubble created by frezied buyers.

Given NYC's housing policies, I would say that the supply shortage will not be addressed any time soon. Probably only a matter of time before studios hit 1 million.

Rahm: my point is that people have been arguing both sides of that question for a few years. I bought a little over a year ago despite people telling me it was a bubble and prices would come down and my place is up about 25% in one year. There just isn't any inventory, so I figure at worst market stays flat, but more likely continues to go up at more modest pace. Also mortgage rates will be coming down again, so more impetus to buy sooner than later if qualified already. Just suggest that you start looking at current comparables. And why DUMBO?

When you consider the Federal Reserve's easy money policy combined with NYC housing policy (no significant new housing supply for foreseeable future), how can prices not continue to increase? Increasing demand, static supply.

I remember in the late 90's my sister bought a tiny studio in the UES for $50,000. I thought she was stupid for overpaying for a closet. Look where we are now.

When you consider how low the monthly costs are it's a pretty great deal especially considering all of the amenities and the fact that it is still a full service building. The rental income that you could get for the apartment also helps to make it a great investment. You could easily get anywhere from $2500-$2700 a month for this apartment. You should also consider the future of the neighborhood in your decision to purchase. It is not in zone A and the park is being expanded, the con ed plant is being moved, and empire stores are coming. One other thing to consider: Studios are limited in Dumbo. It is not like the market is saturated with them, there are no other studios available in the area. That may make it an easy re-sale because they are at the in a hot area like Dumbo people are always looking for an affordable starter home.

@ottawanyc - gotcha. Why DUMBO? Hmm... well, in my price range, that is where I could afford and thats where the unit came up. no good?

> Also mortgage rates will be coming down again, so more impetus to buy sooner than later if qualified already

You mean, if the rates are coming down, I should wait, no?