I am a potential first time buyer whose had an eye on a building for a while and recently a studio became available. The listing price was way overpriced but after I made a reasonable offer. The owner countered, and when I became hesitant to counter back, they took my offer. Problem is I did all this in a real hurry (lease ends this month) and didn't do enough research in the current market. I'm... [more]
I am a potential first time buyer whose had an eye on a building for a while and recently a studio became available. The listing price was way overpriced but after I made a reasonable offer. The owner countered, and when I became hesitant to counter back, they took my offer. Problem is I did all this in a real hurry (lease ends this month) and didn't do enough research in the current market. I'm worried I might be buying at the height of a bubble about to burst but now would be really the best time for me to buy or else I'll have to wait who knows how many years until the bubble finally bursts. I also fear being locked into a place for 5+ years with US foreign and domestic policy becoming unbearable and my job being so reliant on the economy. I can either spend 24k a year on a rental or spend around the same amount to own my own place with even a 15 year mortgage. 12 years of renting at 24k a year could buy this apt. What should I do?
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Response by JR1
over 8 years ago
Posts: 184
Member since: Jun 2015
If it's the same cost, you should definitely buy. It's simple, you are building home equity with your mortgage payment vs. paying it out as an expense. Furthermore, even if you happen to own a small biz, you can't deduct rent for your personal living space. Really it's a no brainer.
Seems like you didn't do any research though, are you working with a buyer's agent (it's free)? Did you sign up for a buyer's broker commission rebate? Do you know what closing costs are in NYC (just google and do some research)?
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Response by JR1
over 8 years ago
Posts: 184
Member since: Jun 2015
So to summarize, step 1: do research on nyc closing costs to see if you can afford to purchase in the first place. step 2: sign up with a buyer's agent and work with a veteran, highly rated buyer's broker for free through a company like Hauseit . Step 3: make sure you're getting some form of a rebate to help cover your closing costs. Step 4: ask your experienced buyer's agent for referrals for mortgage bankers, lawyers etc. and to guide you through next steps. Doesn't cost you anything. It's a noob mistake to go in unrepresented.
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Response by ximon
over 8 years ago
Posts: 1196
Member since: Aug 2012
young, new residents of New York are gravitating to Bed-Stuy and other neighborhoods close to public transportation to Manhattan but offering reasonable rents. This trend should continue. However, I would worry about the transient nature of such residency especially for studios as in my experience young people tend to move once they get a raise or find a significant other. Think about your own personal situation. How long do you expect to live and work in New York? How stable is your job? The last thing you want is to be jobless and trying to rent out a studio apartment in a down market. I have been there and it sucks.
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Response by LuxuryBroker
over 8 years ago
Posts: 66
Member since: Jul 2017
I'm with you, there's got to be limits to gentrification. BedStuy is still reasonably far away, 30 min best by subway to FiDi. At some point it just doesn't make sense.
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If it's the same cost, you should definitely buy. It's simple, you are building home equity with your mortgage payment vs. paying it out as an expense. Furthermore, even if you happen to own a small biz, you can't deduct rent for your personal living space. Really it's a no brainer.
Seems like you didn't do any research though, are you working with a buyer's agent (it's free)? Did you sign up for a buyer's broker commission rebate? Do you know what closing costs are in NYC (just google and do some research)?
So to summarize, step 1: do research on nyc closing costs to see if you can afford to purchase in the first place. step 2: sign up with a buyer's agent and work with a veteran, highly rated buyer's broker for free through a company like Hauseit . Step 3: make sure you're getting some form of a rebate to help cover your closing costs. Step 4: ask your experienced buyer's agent for referrals for mortgage bankers, lawyers etc. and to guide you through next steps. Doesn't cost you anything. It's a noob mistake to go in unrepresented.
young, new residents of New York are gravitating to Bed-Stuy and other neighborhoods close to public transportation to Manhattan but offering reasonable rents. This trend should continue. However, I would worry about the transient nature of such residency especially for studios as in my experience young people tend to move once they get a raise or find a significant other. Think about your own personal situation. How long do you expect to live and work in New York? How stable is your job? The last thing you want is to be jobless and trying to rent out a studio apartment in a down market. I have been there and it sucks.
I'm with you, there's got to be limits to gentrification. BedStuy is still reasonably far away, 30 min best by subway to FiDi. At some point it just doesn't make sense.