First-Timer Questions
Please help me avoid Wednesday night’s “Homebuying for Hipsters” event! A few things I’ve realized I don’t know but should: 1. What’s the general time-frame for buying? For instance, if I’m looking to move in somewhere by the time my lease runs out in September, have I already missed the boat? 2. I know 20%…
Please help me avoid Wednesday night’s “Homebuying for Hipsters” event! A few things I’ve realized I don’t know but should:
1. What’s the general time-frame for buying? For instance, if I’m looking to move in somewhere by the time my lease runs out in September, have I already missed the boat?
2. I know 20% is a standard down payment amount, but how often are 10% or 15% accepted? What are the disadvantages of putting down less up front?
3. I know people don’t use brokers much anymore for renting; is the same true for buying? What risks do you face not using a broker?
4. What costs are affiliated with buying that I might not think about?
5. Generally, how long do you need to live somewhere for buying to be a sound investment?
6. Any low-cost neighborhoods you think are a solid investment?
Thoughts about any of these questions would be greatly appreciated!
There are buyers agents in NYC. I worked with one back when I bought a coop. If they are knowledgeable they can really help out. A good one will have the inside scoop on different buildings and keep you from wasting too much time running around and seeing places that are not right for you. And if it is a coop, they can help you navigate the board stuff. Also, the usual arrangement is that the SELLER pays the broker. If there is a buyer working with you and one working with the seller, they will split the fee. So it is actually no cost to you.
You should go to Barnes & Noble and check out Home Buying for Dummies to get general information. It will explain the different mortgages, what you are actually paying for in closing costs, etc.
In addition to the other neighborhoods mentioned, you may want to look into Ditmas Park.
You should take a look at the coops in Prospect Lefferts. 125 Ocean and 50 Lefferts usually have places in your price range. Like this prewar one bedroom for $255k: http://www.bhsbrooklyn.com/detail.asp?id=988239
that’s a block from the park and a block from the express train, 20 minutes to union square and a ten minute walk from Grand Army Plaza. PLG has–for various reasons–been a decade or so behind the price curve for neighborhoods surrounding the park. Properties go for 1/2 to 1/3 of comparably sized places across the park in Park Slope.
Thanks everyone. You’re right, we probably should go to the meeting, and to one of the Neighbors Helping Neighbors workshops, too. Thanks for the suggestion! Still would appreciate to hear any more words of wisdom you have, though…
I second all of slick’s comments…
i think you should definitely go to the meeting btw. you’ll hear things that you haven’t thought of yet too.
bushwick can be researched by checking out: http://bushwickbk.com
there’s so much to do in bushwick vs. jackson heights. a quick hop on the L to east williamsburg too.
before buying my first house I created a excel sheet with rows representing monthly cash flow for next 50 years. I factored numbers by inflation of 4%. I included my projected tax brackets 🙂 to account tax deductions. Then I calculated NPV. And applied the same model for renting apartment, getting multifamily or getting single family. And then came November 2008 and all my calculations went hiwire. In other words you cannot much predict future prices.
good luck.
Yes, take that class! Or go to neighbors helping neighbors and find out how you can get a grant to cover closing cost, and all kinds of info.
http://www.nhnhome.org/
Great info, and no hipster complaints!