I know this is an age old question but we have been struggling with the math for some time. For those who did this math and still bought, please let us know what pushed you over the edge. I thought the point was you traded flexibility (SaaS model, flex up / flex down, use what you need, optimize for what you need at that time e.g. better school districts, etc.) for lower fixed cost and better... [more]
I know this is an age old question but we have been struggling with the math for some time. For those who did this math and still bought, please let us know what pushed you over the edge.
I thought the point was you traded flexibility (SaaS model, flex up / flex down, use what you need, optimize for what you need at that time e.g. better school districts, etc.) for lower fixed cost and better returns (on-prem model). It seems with buying in NYC you don’t get that.
Assumptions:
$2.3M apartment in NYC w/ 20% down. Monthly carrying cost = 4.1 interest + 2.8K property tax – 640 interest tax shield + 1.5K common charge = 7.7K. This apartment was rented for $8K. What this doesn’t include is opportunity cost on the down payment (call it another $1.3K a month on just the down 5% post tax return, and excluding opportunity cost on mortgage repayment). You also have all the other fees of home owning (broker fees).
When you look at sales / sq. ft. in Manhattan it’s heavily skewed by more and more luxury properties. A lot of apartment’s apples to apples is flat or down over the last 10-15 years (unless you picked the right neighborhood). I’ve seen prices down since 2005.
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