what to do with all this equity?
Bought back in ’99, probably have $500k in equity in a 3br duplex coop worth at least $700. Debating whether to sell and buy a modest house (have kid/s now) or sit tight. Not on the right subway line for kid’s school (F), but in great location otherwise. Seeing houses on F line within reach…
Bought back in ’99, probably have $500k in equity in a 3br duplex coop worth at least $700. Debating whether to sell and buy a modest house (have kid/s now) or sit tight. Not on the right subway line for kid’s school (F), but in great location otherwise. Seeing houses on F line within reach for first time… sell/buy, or sit tight?
Denton,
I said I agreed with the sentiment of “buy a house” but I absolutely do not agree with the “stretching financially” aspect of that in this day and age.
Or any day and age, really.
Americans need to learn to spend within their means.
11217, you could argue that there is a glut of condos. You can point to FL, CA, AZ, and other places where tens of thousands of houses were built on spec that are now in foreclosure.
But almost no houses were built in NYC during the boom.
In fact probably more houses were demolished to put up condos than were built. Therefore, if you’re in the market to buy, I agree w Slopenick. Buy a house.
Sorry slopenick, I don’t agree with you AT ALL.
I think you’re giving out some pretty poor advice, in my opinion.
Buy a house, sure…but stretching financially is just about the last thing you should be doing right now. Buy within your means, leave a ton in savings and enjoy a modest (READ: good does not equal expensive) home. Incomes are going nowhere fast.
A home is a place to escape from the elements and to enjoy your life and raise a family, it should not be (as slopenick says) intended to be an investment in your life. You could lead a perfectly wonderful and fulfilling life in a rental and 75% of the NYC population seems to do just that.
Oooppppps, 11217, I didn’t see that part of his post. I think I read it quickly an assumed it said “not” stretching yourself.
Look this recession (which will very soon be OVER by the way) was not caused by “people stretching themselves financially.” It was caused by people speculating with other people’s money, a drop in lending standards, outright fraud, and people who should know better using their house as a piggy bank to fund spending they knew they couldn’t afford. Stretching means giving up other things (spring break in the Bahamas) so that you can afford a better/more valuable place to live. Now is the time to stretch, if you think about it. Rates are low, housing prices have come down, and incomes will likely rise in the future. Buying a (good/expensive) home is an investment in your own life.
” say get a house if at all possible, even if you have to stretch financially.”
Really? That’s your advice during the deepest recession since the Great Depression? One that was essentially caused by people stretching themselves financially…?
What both of them said above^^^^^^^ Without kids myself, I can’t imagine how much more difficult these decisions become but I bet quite a bit. And yes, selling and renting for a year or two with two kids would be a nightmare. If you find something that you are financially comfortable buying, I say go for it. A purchase contingent upon a sale, though ddifficult, is not impossible. It used to be very commonplace.
I’m making this up, but honestly if you want to stay in this market it doesn’t matter when you move. The market goes down, you’ll sell for less and buy for less. The market goes up, you’ll get more for your coop but pay more for a house.
Depends on whether you can afford a place in the right nabe that you like better than your current spot and whether you can sell the current place without to steep a hit. If so, I say do it. I say get a house if at all possible, even if you have to stretch financially. You’ll appreciate the freedom that comes with it. Mortgage rates ain’t going a lot lower than they are now, so you might as well jump on them….