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April 24, 2009
Good time young couple to buy?
We are a young couple sick of renting in Brooklyn and thinking about buying in downtown BK, Boerum Hill, Gowanus, Forte Green, Brooklyn Heights. We are thinking a 1 bedroom for about $450K and can put together a downpayment of about $100K. But is this really a good time to buy? Prices have been dropping quickly and interest rates are low, but can we expect our property to appreciate? It seems silly to be renting when our mortgage and monthly coop payment would only be a couple hundred bucks more than what we pay in rent. Any advice or thoughts are appreciated!
Comments
Mmmm, lemme see whet my crystal ball says....
Posted by: JohnHancock at April 24, 2009 10:43 AM
No matter what anyone posts on an internet blog/message board, no one knows the best time/bottom of the market/etc.
If you have the down payment and thing you are ready to buy I would suggest you start looking.
If you find something you like at a price you are comfortable with then do what you feel is best.
If you plan to buy and sell in 2-3 years you might be disappointed with the result. If you plan to buy and live in it at least 5 years I think you'll be much happier.
Interest rates, up and down markets, all these things come and go. There is no predicting the top or bottom. Look around, do the legwork and research and if you find something you want at a price you are comfortable with, that should be your metric in my opinion.
Posted by: christopher at April 24, 2009 11:01 AM
Exactly.... no one knows what "the market" will do. However, your reasons for buying a house are the tried and true reasons, so go for it. Don't try to time the market -- you'll never get anything done. My only comment is if you are here at all, maybe you'd rather buy a house than an apartment. It would be more of a stretch financially, but if you are handy, it could work out. Maybe you are apartment people, however, in which case, be VERY choosy. There are alot of apt.s on the market now, so there's no need to rush. With mortgage rates where they are and probably some serious tax incentives, you should definitely be looking around, but be very very picky....
Posted by: slopenick at April 24, 2009 11:05 AM
If you are thinking about a condo, be very careful with any new development. You don't know what troubles lie down the road.
Posted by: daveinbedstuy at April 24, 2009 11:11 AM
Slopenick's got the right idea. If you buy something you can see yourself holding longer, you are less at the mercy of the current market. If you buy something you will quickly grow out of, you may find yourselves stuck when you want to upgrade.
Posted by: slopefarm at April 24, 2009 11:13 AM
I agree. I have had this conversation with many friends. We all agreed that if you think you will leave/outgrow the one-bedroom within 3-4 years or less, then you might want to rent - it will likely make more financial sense, - and rents are down and there is alot to choose from and you dont have the hassle of getting a mortgage. If you are going to be there for longer than 3-4, then certainly buy - it may not be a financial score like it was in the past, but owning gives you a sense of security and maturity.
I would also be wary of new condos with a glut of availabilities.
Posted by: saminthehood at April 24, 2009 11:49 AM
if you buy, make sure there's room for a child. you never know how long you'll be staying for economic or other reasons...
Posted by: Ringo at April 24, 2009 12:22 PM
whats young??
im sort of in the same boat, minus 100k in cash :).
Posted by: guikazoid at April 24, 2009 12:23 PM
I think if you can stomach the age old practice of negotiating - jump in now as it's hard to really time the market. The one stable thing now is that interest rates will remain low through the summer at least...
If kids or just the need for extra space is in your future -try to look for a 2 BR - even if the asking price says $580K - and you can afford $450K - offer that and see what happens.
sellers realize they have to be amenable to all offers
just do your homework in regards to any new condo developments!!!
Good luck!
Posted by: gemini10 at April 24, 2009 12:25 PM
Point re: child - if you are thinking along those lines or that you expect to need more space within a few years, again, dont buy a one bedroom.
In the neighborhoods you want, you wont get a 2-bedroom for $450K, except possibly in the Clinton Coops (and even there, they are asking higher than that). You can have fun and lowball, but most sellers arent that desparate yet. Most sellers Ive spoken to are taking their apartments off the market rather than agreeing to lowball offers.
Posted by: saminthehood at April 24, 2009 12:39 PM
clinton hill coops can be had for $450k. dont let the ask scare you. $450k will get you a 2 bdrm there. Maintenance is high there though (900's per month) but the units are big, solid, great light & some have great views.
don't forget to have a fall-back cushion of savings after the purchase. on never knows if when one loses their job in this econ. so factor that in when doing the cost / benefits of renting vs. buying. I thinking renting is great option now - no $$$ committed, can grow savings, & monitor mkt longer to see how things play out
Posted by: more4less at April 24, 2009 1:50 PM
I had a mentor once who had made hundreds of millions in real estate. I asked him about the direction of the market one day and he said, "Who cares, there's always a good deal out there."
The moral of the story in my eyes is to not let the ups and downs of life control YOUR life.
Posted by: gennaro at April 24, 2009 8:51 PM
BUY AND SELL BROOKLYN HEIGHTS 1 BR WITHIN 5 YEARS @ -50% LOSS
$1,667/mo, ($100K Down)/(5 years)/(12 mos/yr)
$1,800/mo, 30 yr @ 4.8%
$700/mo, Cc/Maint
$283/mo, ($17,000 Cash @ Close To Cover Loss)/(5 years)/(12 mos/yr)
------------------
$4,450/mo, Total Monthly Cost (tax credit offset by other costs)
RENT BROOKLYN HEIGHTS 1 BR FOR 5 YEARS AND THEN SHOP AT HALF OFF
$2,250/mo, Total Monthly Cost (rent, fee and utilities)
Renting still seem silly?
***Bid half off peak comps***
Posted by: Brownstones Half Off at April 26, 2009 1:23 AM
Since the Clinton Hill Co-Ops was mentioned, I have lived in a 1-bedroom there for the past 4 years. I love it - close to subway, the neighborhood is great, super friendly neighbors, and really spacious.
But, as was also mentioned earlier.. if you are planning a family, consider if a 1-bedroom is enough ... I am now pregnant so I am thinking about selling -- hoping to get a 2-bedroom in the co-ops. There is a dining area that lots of people convert to a nursery, which is a thought.
I haven't put the place on the market, as it's not a huge rush (the baby is small at least the first year - haha). But if you have decided to buy - it's recently renovated (kitchen/floors), high floor with views, and way less than $450k - you can email me at clintonhill_girl@yahoo.com
Posted by: clintonhillgirl at April 26, 2009 3:49 PM
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