Who has a 5 year time horizon for a 1 bedroom apartment, or a studio?

Definitely a tough question. Given transaction costs alone, those who estimate trading up in a few years, moving to a different area, etc. have to think carefully.

Yeah this one is a tough one. BTW anyone know who the Mets are playing this weekend?

Well, there are lots of cat collecting old maids and slovenly career bachelors in NY, so maybe they will absorb the many thousands of units on the market at ridiculous prices, right?

I have a longer than 5-year horizon for my 1bedroom, but it doesn't mean I would be living there. I bought in the beginning of 07 and want to get the fixed costs (mortgage/cc) down close to rent (they are not too far off right now and I bought at a reasonable price). Then I become indifferent to renting it out. My plan is to hold onto it long-term and then rent it out. This is why I bought in a condo.

girlygirl,
i sort of tried that angle, but numbers just didnt add up (perhaps i was looking at way overpriced properties). in your estimate, how long would it be since you purchased, before:
(a) market rent equals mortgage payment, and
(b) rent after tax (money in pocket) equals mortgage tax savings?

sorry -- pls read (b) as:

(b) rent after tax (money in pocket) equals mortgage PLUS tax savings?

Right now: The difference between my mortgage + maintenance + tax on a monthly basis and what is being charged for rent on unrenovated in my line is $1500/month. I renovated the kitchen and bath with cash $40k (all-in with higher end appliances), so it is likely more attractive to rent but I won't assume a higher rent. Basically, I got the unit for much less than the other apartments in my line have gone for - good deal.

If I only included the mortgage the difference is only $500. After tax, it is a wash as I got back more than $500 per month equivalent of tax.

but did you count that if you rent it out you pay tax on the rent?

I don't expect to be renting this out right now, but I may pay a chunk more of the mortage next year etc.

Rental income will have tax, but you still have deductions for mortgage interest, depreciation, and repairs - so I think it is still attractive (hence the reason it is so common). Bottomline, my purchase is relatively conservative and if were to move out for personal life changes renting it out makes sense. But I know it is conservative because my mortgage is close to current rental expectations.

girlygirl77...you bought a one bedroom in '07 at a "reasonable price"...unless your mother sold you her apartment where would you find a one bedroom at a reasonable price???

I know this is an anonymous forum, so I dont want to put out my full details. It was in Jan 07 that I closed but I had an accepted offer in late October before the great Wall Street bonuses were announced. I was fortunate that it wasn't well marketed and the owner was out of state. The firm marketing it, doesn't even appear on streeteasy.com which tells you how broad their marketing is. It was 1000/sq ft. And based on what you have posted, I would say I am not too far from you but closer to the park.

My upstairs neighbor bought earlier in 2006 for 60k more and after renovations I am still below that. Since then I believe there is an apartment on a much higher floor but same line in contract for 200k more than I bought for.

the stars were shining on you that day...enjoy!!

It's true. I'll tell you I had only seen apartments the previous week, but I saw a lot as i was about to start a new job and had come back from vacation. I didn't think I would be buying - just browsing. So I thought I would be just gauging what was good etc as you are supposed to do that way ahead of buying. I saw the listing through my broker's search and the seller's broker said they didn't show on weekends or nights! I told my broker to get the key and then the rest is history. It was good luck and a lazy seller's broker. I think though in general when you see a good deal you know it, and it was in my targeted area. So you don't wait on those occasions.

Could that be why studio apartments were totally worthless in the early and mid 1990s???

Studios sold in the early/mid-1990s were built before the 90s (duh, sorry!), in the worst decades for residential development 50s, 60s, 70s, 80s... you had small spaces with low ceiling heights, maybe even popcorn ceilings...

Spunky: You are clearly the biggest idiot who has written anything I have ever read. This transposes all threads. It starts with your inability to spell the word Damn correctly (you spell it "dam" - I swear. no kidding - that alone may make you the most illiterate person in the world) and it continues to every aspect of everything you have ever written. No joke. I'm not just trying to put you down, I think you should actually admit yourself to somewhere that you won't be able to hurt yourself.