You Have $140K Down, Where Do You Buy?
Competition is heating up amongst developers as all the new towers started during the boom years are beginning to come on the market. Unfortunately for developers, an inconvenient thing happened with the mortgage industry — it crashed. The time when buyers could put as little as nothing down on their mortgage is over; now they…
Competition is heating up amongst developers as all the new towers started during the boom years are beginning to come on the market. Unfortunately for developers, an inconvenient thing happened with the mortgage industry — it crashed. The time when buyers could put as little as nothing down on their mortgage is over; now they are expected to come up with 20 percent. “Developers better have a good product if they want to sell,” commented Halstead Director Bill Ross. First-time home buyers, without the equity from the sale of their previous property, will have the toughest time meeting the new requirements, he said. In some places, prices will have to drop. We decided to play a game of comparison shopping for two bedrooms, and a few other options with more space, all priced between $600K and $700K. Pretend you’ve got $140,000 burning a hole in your savings account. Scores of new condos are on the market all vying for your attention; the borough is your oyster. Which one do you choose…
The first choice is a four-room condo at The Crest in Park Slope along burgeoning Fourth Avenue, quick walking distance from transportation and two of the borough’s best retail and restaurant strips. This sprawling duplex in Bushwick (er, East Williamsburg) has two floors, a private garden and a working fireplace. Or you could give up some space to live in the real Williamsburg and have everything you could possibly want at your doorstep. This even smaller condo in Downtown Brooklyn’s BridgeView Tower is literally right next to the bridges into Manhattan, saving you money on cab fare, has SubZero appliances and a “cascading waterfall” in the lobby. Or you could snag an extra bedroom at the lofty Washington Condos in Prospect Heights, an up-and-coming neighborhood and right near Atlantic Yards. And then there’s always the fuhgeddabout-Brooklyn option, this two-family home with an above-ground pool and double curb cut in Lodi, New Jersey. Which one is it?
David Leonhardt of The New York Times advised in a column Monday that you answer none of the above. While he chose to finally buy a place in Washington, he said New Yorkers should invest their down payment for now until the rent ratio (see link, it involves math) decreases. His philosophy as “an evangelist for renting” has been that once you add in the closing costs, repairs, property taxes, mortgage principal, mortgage interest, and other monthly bills if you own a condo or co-op, you might be earning more on your $140,000 down payment if it were invested in something besides real estate.
As Home Prices Drop, Committed Renter Buys (in Washington) [NY Times]
your a wannabe 1:22. Brooklyn is nice if you live in Brooklyn Heights, every other area lacks. Manhattan is the it place if your really concerned about being a elitist.
I’m sure theres great communities in other dangerous areas – but so what?
To answer the original question, I would probably opt for Washington Condos in Prospect Heights – 3 bedrooms! Nice layout, proper closets. Next choice would be Williamsburg.
mrspock, based on apartments I’ve been looking at your maintenance looks a bit high for the size (I’m sure you could pay that if you liked) and $1,000 a square foot seems pricier than you would have to pay. Is 7% the going rate? I closed 3 months ago on a 30 year fixed (conforming) at 5.25%. Apparently, I was lucky on that point if you’re right.
1.48 – classic post – makes assumptions about the people on the site then gets angry when someone makes assumptions about him. great.
“KKK elitist”
Thats an oxymoron if ever there was one.
To answer the original question, I would probably opt for Washington Condos in Prospect Heights – 3 bedrooms! Nice layout, proper closets. Next choice would be Williamsburg.
mrspock, based on apartments I’ve been looking at your maintenance looks a bit high for the size (I’m sure you could pay that if you liked) and $1,000 a square foot seems pricier than you would have to pay. Is 7% the going rate? I closed 3 months ago on a 30 year fixed (conforming) at 5.25%. Apparently, I was lucky on that point if you’re right.
I live in Bed Stuy and love it, 1:35. (1:11 here). I am not black and I am not afraid of black people. Why do you think I have a personal prejudice? Don’t make assumptions about me since I know you don’t know me.
Now for the “normal” people on this post ….
The biggest draw back to the area is the lack of services. (OK, now the police blotter trolls are going ot come out!)
There is a long-standing and large group of homeowners who have done a great job of creating a community. They have pride in their community, maintain their homes and make new people and strangers feel welcome. Strangers frequently say “hi” as they pass you. I know that doesn’t fit into the perceptions of the area, but those perceptions are either incorrect or dated.
You don’t have to live here or raise your children here. Your choice. But don’t make comments based on heresay and fear.
I love Brooklyn and never thought I would say it, but I’m thinking that if I ever have a family, I think I would choose Maplewood/South Orange if I couldn’t afford Short Hills/Millburn.
I love the feel of those towns and after driving around looking at open houses, there is a lot to choose from in terms of architecture, not to mention how positively lush it is in the Spring. The mid-town direct serves both communities and brings you to the city as quickly as the F does from the Slope.
The communities are diverse in people and architecture and boast many amenities such as shops, restaurants and parks. You can get a pretty nice 1920s tudor or colonial on a nice lot with mature trees for $600-750K there and have some left over to pay your property taxes, which are admittedly exorbitant. Private schools aren’t a necessity, but your kids may know that black people exist before they enter the real world which is more than you can say for towns like Chatham, Madison, Morris Twp. and Mendham. Maplewood and South Orange are perfect for the NPR-listening set who have grown tired of their cramped city abodes.
For now, while I’m unmarried and unencumbered by children, Brooklyn it is, but I may change my tune 10 years from now. It doesn’t make a lot of sense to pay $12-20K a year in property taxes if you don’t have kids in the schools.
I certainly don’t see why anyone would chastise someone for moving outside of the city so they can have more space and can send their children to better schools.
If you are moving to Lodi however…
“Anyone who chooses to raise a family in that environment needs to have their head examined. Especially considering the asinine amounts people are paying to live in those neighborhoods.”
that persons parents did not do a good job with them. They are KKK elitist…