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Bowl Leader
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ThAnKs fOr thE HeLpfUL CoNtExT 🙃
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Anyone here took the USI localization program?
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Luxury high rise vs walk up. Suggestions?
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Rising Star
If you live in it for 5 years or so, it will pay back in appreciation. We bought for $425k in 2001 and is now appraised at $2 million. Yours feels just a bit overpriced if that but quite reasonable for PS321(?). Supply in PS will always lag demand for 2/3br. All buyers tend to have buyer’s remorse for a little bit. Key is to make it a fun home and enjoy the Slope
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The real value in real estate is the leverage. That’s about a 7% CAGR for the home, and assuming 80% LTV, increases it to 14%. It’s a higher return once you consider annualized principal pay down.
In contrast the markets would’ve given you a 9% CAGR.
Chief
What it went for almost a decade ago is irrelevant. The market value is probably >1M. That is a decent price for a 2 bedroom in NYC…Perhaps I should take it if you back out. I’ve made impulsive “felt right” gut decisions before on real estate and it’s worked out well. Of course you should make sure you can afford it before buying.
800 sq ft for 2 br?!
800 is 60% > 500, 60% is not marginally larger, imagine a 60% base salary increase
You would’ve never gotten it if you low balled. Brooklyn market is on fire. Don’t have any doubts, the value will double in time.
Agree. Don’t second guess the price
800 square feet with a kid is going to feel very small, very quickly. That said the apartment will likely appreciate pretty quickly over the next few years, and if you’re planning on renting something comparable, might as well go for it..
For example: 2.5MM place in Greenwich village we considered. They bought it for that amount in like 2017 or so that means a decent loss. There were multiple from people that bought in 2015-17, especially for people that bought the place as new construction.
More expensive condos might be a bit like new cars as well where the first owner just loses a bit (unless the market overall appreciates a lot).
Isn’t coop supposed to be cheaper than condo? 975 sounds like a condo price. Feels a little expensive, depending how new the apartment is.
$975k gets you a studio condo in the outer boroughs, not a 2 br.
Could wait 6-12 months and save more but won’t get comfortable much over 1m for a while. Most much bigger/better layouts start at 1.2. Some comps have gone closer to 900, some over 1m. Who knows what market will do in meantime…
Why are you buying an apt in that range? You work at McK and your comp will grow significantly in the next few years. Get something for 1.2-1.5M then. You’ll have way better options and find something worth living in for 10 years (which is needed to compensate for the 10% selling costs of a coop when you move).
FWIW I have lived in BK Heights, Park Slope and Cobble Hill for the last 6 years and you sound like me in 2021. I’m probably buying something for 2-2.5M next year.
I’m internal, won’t accelerate like that. so a few years would help but worry we’d still be in first tier 2bd 1 bath
SOME SOUGHT OV BIG GIRL MAMA
What’s the benefit of buying over renting?
GS1 reminds me of a story I heard about a GS Partner who rented and had outdoor plastic furniture in his rental. 🤣
You might very well be right that the math edges out towards renting (the discussion above completely misses closing costs for example and plenty of people that bought around 2016-17 actually took a loss…) but renting some random “luxury” apartment in a rental with 500 other people is not what I’d consider a home. Most rentals are trash. Luxury apartments that don’t have the space for a proper dining table are all too common.