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May 19, 2009
Only if I were 10 years older
My family bought a house in Brooklyn back in 2001, the price was "expensive" for them but with hard work they saved enough to afford it. Now the house is worth 3x as much. Sigh. How can someone in their mid 20's afford a home in Brooklyn nowadays? Now even working hard and saving a lot wont get you anything... Sigh, I am just venting since I been looking for about 6 months now.
Comments
I hear you. After living all over the country and the world I finally found a community I feel like I belong in Brooklyn. How I'll be able to afford staying and raising a family here, I don't know. I probably wont.
Where and for what are you looking?
Posted by: alsawo at May 19, 2009 11:28 AM
I'm looking pretty much in Sunset Park, Park Slope, Gowanus, Prospect Lefferts Garden, Bay Ridge/Shore Rd. I've found some decent stuff in Sunset Park 2-3fam for 599. I found a property on 13th st for 450k but the house was worthless, its a demolition job. Obviously with my budget its hard to find in these areas. But Ill even consider some area in BedStuy or Crown Heights... But the properties I find are too much for whats being offered.
Posted by: guikazoid at May 19, 2009 11:43 AM
Quit bellyaching quikazoid and come up with a plan. It is possible. But like most things in life it doesn't come easy nor will it be handed to you (you're also not entitled to it). My wife and I purchased a 3 family house in Greenpoint Brooklyn at the height of the bubble at the time we were making a hair less then 100K. We were able to save up the 10% down payment by living in a studio and "enjoying" a pretty austere lfestyle for 4 or 5 years. Minor lifestyle adjustments helped (ie. elimenating my 200 a week bar habit and brown baggin my lunch every day). It's possible even with less money down if you go the FHA route.
Posted by: dosteov at May 19, 2009 11:44 AM
Saving isnt an issue for me or my gf. We are pretty responsible, somewhat conservative with our spending but like to indulge once in a while. Between the 2 of us we save into an ING about 2$,200 a month. Not including 401k/203b. No credit card debt, just student loans. This is exactly what I am getting at. I/we Have a decent amount of cash saved, no "bad" debt, etc., and still cant just find a good buy.
Posted by: guikazoid at May 19, 2009 11:51 AM
$2,200 a month.*
Posted by: guikazoid at May 19, 2009 11:52 AM
I found a lot of listings when I was looking in western Crown Heights/eastern Prospect Heights for between 570 and 670 K. There is one house on Lincoln Place right off Rogers that is listed currently for 570K that needs some fixing up. Check out trulia.com and you can sign up for notifications of new listings. I find that realtors who are not corcoran or halstead actually have reasonable prices. Also, do drive bys with a zip car and write down phone numbers and call. If you are willing to do more leg work on the hunting, you'll find better prices and properties.
Posted by: theklahy at May 19, 2009 12:05 PM
I usually drive around Sundays. Ive seen the place on Lincoln, its was 3 family. I think about 4,000 SF. The agent said rent is like 16-1700 per apt. each 3 BRs. When she showed it to me it was listed at 625. nice price drop.
Posted by: guikazoid at May 19, 2009 12:24 PM
theklahy.. is it this one?
http://www.trulia.com/property/1077536010-334-Lincoln-Rd-Brooklyn-NY-11225
Posted by: guikazoid at May 19, 2009 12:25 PM
dosteoy - are you familiar with the fha process?
Posted by: guikazoid at May 19, 2009 12:36 PM
I don't know what your price range is, but there are a fair number of two families for sale in Bushwick and Bed Stuy in the $400,000 to $500,000 range. Note that the "ask" price is not the "sell" price -- expect to offer about 10 percent less. That said, the houses are typically in poor condition. However -- everything we see is in poor condition. The $800,000 houses are not always better. In fact, sometimes they are worse. We have been looking for about nine months and have not found anything, but that's partly because we have unusual layout requirements.
Posted by: mopar at May 19, 2009 12:38 PM
Nope, it was this one. http://www.trulia.com/property/1041220816-726-Lincoln-Pl-Brooklyn-NY-11216
I actually made an offer on it in December, and the gentleman declined because he was hoping to get more for it. I have since purchased another property, but am still getting listings from Trulia. I noted that he has now gone with a different realtor who has dropped the price BELOW what I offered in December. It's the market, I guess. Anyway, the house requires a decent amount of work, but it was decent, and I think the area in that few block radius is getting better rapidly.
Posted by: theklahy at May 19, 2009 12:44 PM
PS. The property is located next to a church. I even did research to find out if the church would have lots of homeless or other people hanging around it and I don't think it did. (Though I applaud churches who feed the homeless and have drug counseling meetings, I didn't want to live right next door to one.) I thought it was a good deal at the time based on what I offered. I think it is now an even better deal.
Posted by: theklahy at May 19, 2009 12:46 PM
theklahy. do you use IM? gchat or aim?
Posted by: guikazoid at May 19, 2009 12:54 PM
We didn't go the FHA route (we were able to muster up the 10%, rolled the closing costs onto the loan and didn't have to pay PMI insurance because of a 2nd mortgage). I have a friend who is in the process of closing on a 2 family in Greenpoint and the loan is FHA. I don't think he is putting more then 3% down though (which is less then 20K). There are limits for FHA loans too (I think for a 3 fam it's about a million). Talk with any mortage broker about the FHA process (Adam Dahill who is on this site frequently is good). He can give you a good idea about how much of a mortgage you can qualify for.
Posted by: dosteov at May 19, 2009 1:10 PM
I do use gchat. I am happy to chat with you via email or gchat about properties in the Crown Heights/Prospect Heights area. We literally just closed on one a month ago, and it was an interesting process where I learned a lot. I've lived in Park Slope, then Prospect Heights (and Ft Greene for a brief stint) on and off since 1997 and seen the neighborhood change quite a lot during that time. Post your email? Or try to gchat me?
I didn't use the FHA process, but I've heard good things about it if you are willing to go through a bit more extra hoops and if you can scrape together something, now is a good time to buy.
I would also, as a side, advise to stay away from short sales unless you have a strong stomach for risk taking. Short sales are where the properties are selling for less than the mortgage(s) and the bank will lose money. They have to be approved by the bank, who can hold onto your deposit for months on end, only to deny your sale.
Posted by: theklahy at May 19, 2009 1:23 PM
shoot me an email to guikazoid@hotmail.com ill then send you my gchat address.
thanks!!!
Posted by: guikazoid at May 19, 2009 1:28 PM
You'll get there! I've always found that, whether you rent or own, you have to do a lot of shopping before you find the right place. Check out all the usual sources, Craigs list, NY Times, those little magazines you see in the grocery store.... Make a routine of it. Have fun! I always did.
Posted by: bessie2 at May 19, 2009 1:28 PM
I agree guikazoid. In many ways I miss the days ('60s--70's) of Everett Ortner's "Brownstoners' Coup" whereby a couple of schoolteachers could buy a brownstone (or other unwanted city house) and live like millionaires on very little money.
Posted by: Bob Marvin at May 19, 2009 1:47 PM
renting is overlooked by too many people as a great alternative to living somewhere you like TODAY. renting is not bad and owning is not necessarily a badge of honor. ownership has its risk - a hard lesson the current mkt is teaching or reminding us. prices aint going to run up on you any time soon. hunt down a nice rental in a neighborhood you consider buying, use the time to save some more, research some more if neighborhood is where you want to live, etc. Crown Heights North for example has big 2-3 bedroom units for rent in the 1700-1800 range - that's a pretty cheap alternative (vs. mortgage + tax + insurance +....) vs owning.
Posted by: more4less at May 19, 2009 2:15 PM
Do you have your heart set on Shore Rd in Bay Ridge? I think you could open up your options more if you looked up from shore, like between Ridge and third or Narrows and Ridge. The Shore Rd area homes are always a lot more.
Also I've learned that realtors here don't advertise in the papers much.
Good luck in your search.
Posted by: italiana71 at May 19, 2009 3:42 PM
I found my place in bay ridge on CL. The realtor was a great ReMax agent named Maria Skarvelis. I looked in Sunset Park and didn't see anything that didn't need major work and there aren't so many amenities there. Yes, the commute is longer, but you can get a cute one-family with a garage for the price of a two BR apt in other neighborhoods.
Posted by: Cantaffordcarroll at May 19, 2009 5:57 PM
The other thing is, a lot of young people buy "starter" apartments, then sell them five years later and have the down payment and reserve fund for a house. Of course, you'd have to sell in an up market. Planning conservatively, I'd guess prices won't rise back to 2006 levels for another then years. (No one really knows.)
Posted by: mopar at May 19, 2009 6:11 PM
My memories from the 70s were that friends of my parents bought in South End Boston but they weren't really living like millionaires - a lot of crime, hard work renovating houses etc. Don't millionaires have people to renovate for them? (LOL). One couple were featured in the book "Common Ground" about the Boston busing crisis. They ended up fleeing for the suburbs. There are reasons why some houses are more expensive now...
Posted by: Putnamdenizen at May 19, 2009 6:58 PM
Keep saving--I am convinced prices will drop, and you just need to be in a good position when that happens--it sounds like you are on the way. Good luck
Posted by: lf2009 at May 19, 2009 8:32 PM
There are lots of deals (obviously they need lots of work) in fringe hoods like Bed Stuy and Bushwick. I sometimes email deals I spot to friends who are looking to buy, but the stock response I receive is "I'm not living in the hood."
You need to decide how much of a "hood" threshold you and your woman can bear.
Once you've focused on a particular neighborhood, start hitting CL and the other sites religiously. If you can find some good agents to help you look, use them.
Before you know it, you'll find something that makes sense.
And don't be afraid of renovation projects. With a good contractor (only go off personal references of friends) it's often not as big a deal as you might think and allows you to personalize a space to your exact specifications.
Posted by: IronBalls at May 19, 2009 9:07 PM
Putnamdenizen,
LOL--the hypothetical schoolteachers were to live like millionaires AFTER their house was finished. In retrospect, knowing more about old houses, that's somewhat akin to "next year in Jerusalem" at a Passover Seder.
Posted by: Bob Marvin at May 19, 2009 9:12 PM
Yes, homeownership in NYC seems to be for the six figure crowd only. You can try buying a Coop. If your heart is set on a Row house, there are some lovely blocks in Bed-Stuy, Crown Heights, Eastern Lefferts Gardens - past Rogers (thanks Bob) where you may be able to get something that's "modestly" priced, as iron says, maybe a fixer-upper. I'll leave that "fringe" comment alone. Also, you can also factor getting something with a rental but don't force it, either you can afford it or you can't. Finally (and don't tell this to the latte sippers that post here) As you know - Brooklyn extends past Prospect Park - there is Flatbush, Canarsie, Dyker Heights, Mill Basin, Marine Park, Sunset Park etc, etc. You may need a car but it may be worth it.
Posted by: Crownlfc at May 21, 2009 1:30 AM
quikazoid, how do you save so much each month? Do you have any tips for us?
Posted by: mopar at May 22, 2009 12:07 AM
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