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November 28, 2005
Rent Versus Buy
I realize that this is a bit of an overarching question and topic, but I have been reading through this site for the past week and would appreciate any advice/thoughts from this group.
My wife and I currently live in the Upper West Side (we rent). We're at the start-a-family stage of our lives and are thinking about moving to Park Slope. We're currently debating whether to rent or to buy. If we rent, it would be be a 2 or 3 bedroom; if we buy, would be a 2 or 3 bedroom apartment or potentially a brownstone (one or multi-unit). So, our options are open.
Would love to get people's perspectives on the rental vs buying market now in park slope. Rental units seem to offer more per dollar, although the units are not as nice in my opinion. Do people see the buying market weakening recently? Any particularly overheated/underheated type of units? Historical context?
Basically, any perspective on the market now would be useful. I'm looking to live here for at least 4+ yrs with the potential of staying longer (if a brownstone, say) or of buying elsewhere and then keeping this as an investment unit. I recognize that I may be coming into this at the top of the curve, but from a quality-of-life perspective, I think that Park Slope seems like a great place and from an investment perspective, I don't think it's unwise to have some portion of one's money in real estate. And, frankly, I'm not naive enough to think I'm smart enough to time any market...
Comments
Renting vs. buying is much more than a financial decision. If you own your own home, you don't have to worry about rising rents or losing your lease. We lost our lease two years in a row in Park Slope (owners divorcing and selling the house one year and owners moving back to Brooklyn and wanting their apt back the next). The first move was with one kid but we had a second baby for the next move a year later. We ended up buying so we could have control.
If you own a house, you have to keep it up, shovel snow, etc etc but you can also remodel and renovate and continue to invest (and invest and invest)in your home.
Posted by: ex-sloper at November 28, 2005 11:00 AM
For us, it was not really a financial decision, but more a control one. I can't tell you how many of my friends moved into my neighborhood the same time that we did, and we all fell in love with it, but many of the renters have had to move to the less-desirable outskirts or leave altogether. When you have some measure of control over where you live, you will have better peace of mind. And trust me, nothing sucks more that having to move with children when you don't want to.
Good luck!
Posted by: Amy at November 28, 2005 1:41 PM
We just faced the same type of decision- and thought for a while about Park Slope as well. For various reasons, we ended up buying a house in Victorian Flatbush- which is good because with 2 kids we really need the space. If you're looking for reassurance about the neighborhood, I can only offer my opinion that Park Slope is very well served with infrastructure, schools, and, of course, the park. And while it may seem as though prices there are relatively high, I would say that the neighborhood is a relatively safe investment. Yes, there may be a glut of new Condos going up in South Slope and 4th ave, but any place with a little character (Or a Brownstone!) should hold value nicely. Buying vs. renting is a very personal decision, but I think that if you're talking about a place to live in and maybe have a family in, owning can be a very beneficial- especially in a solid neighborhood like Park Slope.
Posted by: pk at November 28, 2005 2:21 PM
Thanks to all! Very helpful comments. What are people's thoughts on Carroll Gardens / Cobble Hill vs Park Slope with respect to raising a family?
Posted by: What to do at November 28, 2005 2:48 PM
For me, Park Slope wins over CG/CH- if for no other reason than the Park.
Posted by: pk at November 28, 2005 3:02 PM
First of all you should know that it's not so easy to get a large rental apt. in any of the neighborhoods you are considering. And the nice ones that come on the market are generally pretty expensive and don't necessarily allow you to stay for years and years on end, etc. So it's hard to make any kind of true comparison exactly until you have actually found places that you like and can afford that are either rentals or for sale.
Posted by: Anonymous at November 28, 2005 9:38 PM
I used to live in Park Slope between 8th and the Prospect Park West and I went to the park all the time. Then I moved to between 5th and 6th Avenue and I didn't go nearly as often. Now I own in Carroll Gardens and the distance to the park is really a non-factor. My experience is that unless you are located within the first three blocks of the park, i.e. 7th Ave, 8th Ave, Prospect Park West, you are going to end up hopping on your bike to get there and once you are on your bike it doesn't make much difference if you are going 4-5 blocks or if you are going 7-8 blocks. Personally, I find Carroll Gardens to be much more low key and it still has a lot more old world charm. Also, if you are planning on kids, PS 29 is an incredible elementary school. I don't like Park Slope for the same reason that I don't like the upper west side. If I try to explain that sentence I will get myself in trouble. Anyway each has great things to offer and you really can't go wrong in any of those neighborhoods.
Posted by: Anonymous at November 29, 2005 11:41 AM
As a real estate broker, I give the question of the future of the real estate prices a lot of consideration. Everyone is concerned about their investment, buyers and sellers both.
RE prices in NYC ebb and flow. You said you are making a quality of life choice. It would not be unwise to buy as long as you LOVE it and you can afford it. Don't buy because you are settling. In the past there were always fewer 3-bedroom apts available than two bedrooms and even fewer houses than three bedroom apts. Most of the developers are responding to the needs of the buyers by building "family size" condos (1200 sq ft or more). In the future there will be more larger two bedroom and three bedroom apts available. In a future worse case scenario, the market could completely tank and the developers would be unable to sell their recently completed condo units because the supply exceeds the demand. The price of those units will drop and pull the price of co-ops down also. If you have purchased a co-op with a no-sublet policy and you have to move to another area, then you have an apt you can't rent. If you sell it you might take a loss. If you have purchased a condo or a co-op with a sublet policy you could rent and wait out the downturn in the local economy. Remember real estate prices are cyclical.
On the other hand, the developers are not building new brownstones on tree-lined blocks. Because there is a very finite number of brownstones in Brooklyn, they are less likely to lose their value. As the neighborhood becomes more crowded, houses will become even more desirable and valuable.
Posted by: Anonymous at November 30, 2005 2:52 PM
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