Buying With Help From The Rental Units
The Times dishes on the New York City real estate market’s dirty little secret — that it’s being fueled in great part by the retirement-age parents of twenty- and thrity-somethings who wouldn’t otherwise have a shot in hell of owning even a studio apartment. When we bought our first apartment — a 950-square-foot prewar one-bedroom…
The Times dishes on the New York City real estate market’s dirty little secret — that it’s being fueled in great part by the retirement-age parents of twenty- and thrity-somethings who wouldn’t otherwise have a shot in hell of owning even a studio apartment. When we bought our first apartment — a 950-square-foot prewar one-bedroom in Manhattan — for $160,000 in 1996, it was still possible for a 27-year-old and his fiancee to buy something on their own. Now, though, the idea of having socked away a downpayment of $150,000 or $200,000 (instead of $30,000 or $40,000) by the age of 30 is realistic only for those in a small handful of professions. Enter Mom and Dad. In Williamsburg (where Natasha Agrawal, bottom right, got hooked up with a $900,000 penthouse by her parents), one Douglas Elliman broker estimates that one quarter of the condos are being bought by parents or the trust funds they have set up. The twist, The Times notes, is that these hand-outs often come with some (creepy) strings attached, such as extorted promises not to let a boyfriend or girlfriend move in.
Buying With Help From Mom and Dad [NY Times]
I will be forever grateful to my parents for buying me (yes, buying, not helping with a downpayment) my first 1-bedroom in PS and then again 7 years later helping me purchase my PS brownstone. I would not have been able to afford either for years and years (I’m in my early 30s) but my parents could easily afford it. I feel very lucky to have such generous parents and hope I will eventually be able to be as generous with my children. I’m not sure where all the nastiness about “manning up” and the negative impact of parents buying for kids comes from, other than envy.
For young people — this isn’t about making enough money to live in a brownstone neighborhood in Brooklyn nor about moving out of NYC. This is about finding a new affordable neighborhood, along with others of your income level, and moving in while it’s cheap. That’s what changed all the neighborhoods that are so desirable in Brooklyn. There are still lots of middle class people in them, but they are in their 40s, who bought when prices were $150 – $200,000 for a brownstone. I don’t know what the next neighborhood is, but I’m certain there’s somewhere out there in NYC that is still affordable. Queens? The Bronx? I have friends who moved to Inwood a few years ago and bought great places for cheap, but now that’s becoming more expensive. But my point is that there are still places where you can buy a 1 or 2 bedroom starter apt. (or studio) on a relatively small income. When I came to NYC in the mid-80s, friends didn’t visit me in Brooklyn, and Williamsburg was the place that Orthodox Jews lived. That all changed in a heartbeat, and I’m sure there are unknown neighborhoods now that you can afford.
And of course a Scarano Loft apartment is everyones dream.
Dear Grandpa, How wrong you are, my friend. NY IS the world. Just to prove I could do it, I did live outside NY and it was a marvelous experience (two expatriate experiences – Tokyo AND Kansas City – Kansas City more foreign, by the way) and I am NEVER going anywhere else again. Never. I missed the pizza, my family, the zaniness…..the neighborliness, the village quality of living in NY, the food, the Metropolitan Opera, the museums, the all nite places, my friends, the casual mixture of everybody from all over the planet riding the subway, I missed the subway, spontaneous conversations with strangers even if they were wierd; I missed being able to be wierd, I missed downtown Manhattan. Not to say other places aren’t just dandy in their own way and that I am beating my head against the wall here all the time – life is not easy in NY and leaving NY and coming back is very hard, etc. but I missed NY so much and was so homesick.
Hey, but that’s just me… I had a pretty swell house and I actually had people over there a lot, that was nice, but when I got to come back, I came running and I ain’t going no place else, EVER!
So put that in your pipe and smoke it!!
My husband and I are in our early 30’s and we could have afforded a 1 bedroom in Brooklyn on our own, but when our parents offered to loan us some money at a slightly lower interest rate than the bank, we couldn’t resist. I was wary at first, having only ever asked for monetary help once in my life($2,000 when I moved to NYC and needed a deposit for a rental. I paid it back in two weeks) However, it quickly became apparent that it was a win-win situation. They still collect interest on their money and we got a bigger apartment. Why should the bank get the interest? They have no expectations…except perhaps they are hoping we can afford to have a baby sooner rather than later 😉 We are very lucky to have parents that are able to help us out.
Please, their is a very big world beyond New York, and other than missing the occassional pizza slice, family, and the occassional magical zaniness of the place, most people are very happy when they leave New York. These losses are more than made up by less crime, good public schools, saving money, lower taxes, less stress, better job opportunities and very affordable housing.
By the way, I’ve noticed you can now buy the New York Post at local delis in Chicago and LA sells it many places. Crazy.
What is wrong with parents helping their children? Isn’t that what parents are for? We may quibble about amounts (and I agree that a $900,000 apartment for a 20-something is a bit extreme) but why shouldn’t parents with a bit of extra cash use it so their kids can live in a better neighborhood or closer to the office.
Not sure how many former NYers you’ve met you moved away (some cashing in on the RE boom, others changing climates, scenes). I’ve met a number of them (different ages) and they all miss NY terribly. THey comment how bored they are, how they can’t go anywhere/meet anyone without driving to a mall. They miss the abundance of ethnic foods.
THEY WISH THEY COULD COME BACK BUT CAN NO LONGER AFFORD TO.
Nobody is claiming a RIGHT to live in a city other than equal opportunity… There is a problem, with all these jacked up RE prices and that is that the majority of peoples (all walks and backgrounds) have to work a hell of a lot more to even attempt to come close to paying for it all. It does have an impact on marriages, children, the family and neighborhood.
Ever wonder why you see less kids outside playing despite the increase in salaries and RE prices, etc.?? Years ago (not that long ago), mother, grandmother, etc. was actually home to help maintain outside coverage.
Sure, build more affordable housing. Yeah…where exactly is that being done??
Developer after developer swoops in to create huge profit driven deals, leaves, and then we have luxury condos for…the few.
GREED: one of the seven deadly sins. Oh yeah: I sad the word “sin”, loving every one of you readers who takes exception to that old-fashioned word. Don’t worry, it’ll catch up to you..eventually.
🙂
3) If you can’t afford NYC, move somewhere else you can afford.
Is the truth no one has a guaranteed right to live here. You sound like a whiny moron. Is it the case that you have to live in NYC or you will die? I think not.