Local Housing Market Headed for the Trash Can?
Real estate experts are convinced that the New York region’s housing market is about to undergo a serious correction, according to an article in yesterday’s Times. Analysts expect the coming bust to be significantly worse than it was in the early ‘90s, particularly in New York’s suburban markets. Nevertheless, Manhattan—and by proxy, pricey Brooklyn—has so…
Real estate experts are convinced that the New York region’s housing market is about to undergo a serious correction, according to an article in yesterday’s Times. Analysts expect the coming bust to be significantly worse than it was in the early ‘90s, particularly in New York’s suburban markets. Nevertheless, Manhattan—and by proxy, pricey Brooklyn—has so far mostly weathered the national housing meltdown, and the decline in values here isn’t expected to be as bad as in our outlying suburbs. During the year that ended in November, prices in the NY metro area fell 4.8 percent, according to Standard & Poor’s/Case-Shiller Home Price Indices—a drop that pales in comparison to Sun Belt cities, many of which saw double-digit declines. Still, economists predict that house prices in the region will drop by at least 15 percent in the current correction. Ouch.
Home Prices Start to Dip, Recalling ’90s Slump [NY Times]
I’m not worried in the least.
I work for the IRS.
Except a home office requires you to meet an “exclusive use” test – I wonder how you can use 50% of your STUDIO apartment EXCLUSIVELY for business purposes (i.e. no living)
– don’t worry as long as you can pay interest and penalties they probably won’t seek jail time.
co-op pays the insurance, 2:09.
i pay insurance on my belongings and everything from the walls inward.
since my studio is so small, it’s quite easy to say that 50% of it is being used as a home office, since it’s actually more like the whole freakin thing!!
1:54 – – if you are legitimatley writing off part of your home as a Home office then factoring that in and claiming it as a deal on “housing” is totally misleading (and irrelevant to the debate).
Additionally have fun getting audited by the IRS (since it sounds like you are claiming 50% of your STUDIO apartment for a home office) – which is the surest way to invite Tax scrutiny. BTW based on your insurance ($220) you clearly arent telling your insurance co that you are operating a business (with clients visiting) in the location.
1:32 – and I guarantee you NONE of the people on the Forbes list got there by appreciation on their primary place of residence (or in fact any RE that they live in).
1:18 is exactly right – no one knows what will happen…But one thing is for sure
right now cost of ownership favors renting in NYC and therefore if sale prices stay flat, or decline you will be much better off renting however if prices continue appreciating then you will be much better off owning.
i.e. the renting vs. owning debate is pointless because it depends on knowing what the future will bring – which no one knows.
you need to read 1:52
it has to do with having a home office also.
which i never used to be able to have in my rental before. they didn’t allow clients to come in like that.
so yes, i’m basically getting 7K more than i ever used to living in a rental.
jeez. everyone likes to hate people who are happy on this board.
I’d like to see someone get a 10,000 tax rebate from the mortgage interest deduction on a $12,000 year interest payment!!! LMAO!
Let’s just say I got back 3K last year, so 7k of it has to do with the house.
And I work from home now some (wasn’t allowed in my previous rental) and so I get to write a lot more off than I used to.
Yep…my homeowners insurance is $220 bucks a year and property taxes are covered in my maint.
I’m actually buying a Vespa and an iphone!
Doin my part to help the economy!!!