Need help from NYC Real Estate Experts!!!

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Topic Author
newyorker
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Joined: Sun May 17, 2020 7:59 am

Need help from NYC Real Estate Experts!!!

Post by newyorker » Sun May 17, 2020 8:16 am

Hi Guys,

I am a guy in mid 30 looking to buy a pied-a-terre condo in NYC. I am looking for a condo (not a co-op) with budget of less than 1 mil and as cheap of maintenance/tax as possible. The reason I am looking for a place is because I've been sent to rural NY due to job reason and boredom during the weekend is pretty unbearable.

With recent COVID19, I've seen the price at NYC condos drop quite a bit. I am wondering if it is a sound (or at least not a horrible) financial decision. NYC condos have huge (at least 1100/month on tax + maintenance for a studio) carrying cost.

I understand getting a hotel room during the weekend makes more sense but the hassle of getting hotel room every weekend doesn't seem to be worth it. Also, I plan to let my family use the place while I'm not there. I understand this is not the best way to spend money, but I think spending weekend in nyc will help me mentally (of course post covid19)




What do you guys think? And any recommendations or suggestions on what I should do?

Thank you.

Silk McCue
Posts: 4518
Joined: Thu Feb 25, 2016 7:11 pm

Re: Need help from NYC Real Estate Experts!!!

Post by Silk McCue » Sun May 17, 2020 9:26 am

Welcome to Bogleheads!

It sounds like a poor financial decision. Some itches shouldn't be scratched just because you can.

Setting up a recurring hotel reservation seems like a much better idea and provides you with much greater flexibility. Not owning at one location also allows you to venture out to other locations of interest outside of NYC for some of those weekends. Get creative in your thinking of other places you can go to for the weekend.

Cheers

Topic Author
newyorker
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Re: Need help from NYC Real Estate Experts!!!

Post by newyorker » Sun May 17, 2020 9:40 am

Silk McCue wrote:
Sun May 17, 2020 9:26 am
Welcome to Bogleheads!

It sounds like a poor financial decision. Some itches shouldn't be scratched just because you can.

Setting up a recurring hotel reservation seems like a much better idea and provides you with much greater flexibility. Not owning at one location also allows you to venture out to other locations of interest outside of NYC for some of those weekends. Get creative in your thinking of other places you can go to for the weekend.

Cheers

Thank you sir! I lived in nyc previously for 15+ years so know the place pretty well. Always dreamed of owning a small place in NYC but I agree that this would make absolutely zero sense if it was still in bubble stage. But, since COVID19, things are coming at a discount. Would I even be able to break even?...

onourway
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Re: Need help from NYC Real Estate Experts!!!

Post by onourway » Sun May 17, 2020 10:05 am

I can’t give you specific help on the real estate decision - however I can tell you more generally that the advice you will get here is dependent on people knowing your full picture. That you are even contemplating this indicates you are quite well off. However we don’t know anything more than that. A purchase of this magnitude for weekend use is generally in the realm of people with high seven if not 8 figure portfolios. Maybe that’s you. If it’s not, this is probably over-extending yourself a bit too much, and concentrating risk in a single asset.

For most people, a hotel would seem to be the better option. At your budget you could easily afford a beautiful suite in NY every weekend. It would be cleaned and stocked and you would have no obligations if your mood or priorities changed. There is a reason many successful people use this model instead of owning something.

Topic Author
newyorker
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Joined: Sun May 17, 2020 7:59 am

Re: Need help from NYC Real Estate Experts!!!

Post by newyorker » Sun May 17, 2020 10:24 am

onourway wrote:
Sun May 17, 2020 10:05 am
I can’t give you specific help on the real estate decision - however I can tell you more generally that the advice you will get here is dependent on people knowing your full picture. That you are even contemplating this indicates you are quite well off. However we don’t know anything more than that. A purchase of this magnitude for weekend use is generally in the realm of people with high seven if not 8 figure portfolios. Maybe that’s you. If it’s not, this is probably over-extending yourself a bit too much, and concentrating risk in a single asset.

For most people, a hotel would seem to be the better option. At your budget you could easily afford a beautiful suite in NY every weekend. It would be cleaned and stocked and you would have no obligations if your mood or priorities changed. There is a reason many successful people use this model instead of owning something.
I totally agree with you. I'm in seven figure zone but not high... and was looking for a modest 500k condo but yeah, still a waste of money nonetheless. I think its a stupid decision financially but thought having a place there would force me to get out of rural area and spend time in nyc and thus better QOL.

By the way, do you know of any ways I can save money if I use a hotel frequently?

onourway
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Re: Need help from NYC Real Estate Experts!!!

Post by onourway » Sun May 17, 2020 10:27 am

newyorker wrote:
Sun May 17, 2020 10:24 am

I totally agree with you. I'm in seven figure zone but not high... and was looking for a modest 500k condo but yeah, still a waste of money nonetheless. I think its a stupid decision financially but thought having a place there would force me to get out of rural area and spend time in nyc and thus better QOL.

By the way, do you know of any ways I can save money if I use a hotel frequently?
I presume you are renting where you are now? Are you paying the rent or your company? Is the upstate gig temporary, and if so, would you be returning to the city to live in the future?

veindoc
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Re: Need help from NYC Real Estate Experts!!!

Post by veindoc » Sun May 17, 2020 10:30 am

Where do you live now? Do you own or rent? How long do you plan to hold this job? Is this a temporary assignment. How far is where you live from Manhattan?

What is your salary, expenses and net worth? That will help us in giving you advice on whether or not it makes sense financially to buy a second home?

veindoc
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Re: Need help from NYC Real Estate Experts!!!

Post by veindoc » Sun May 17, 2020 10:34 am

newyorker wrote:
Sun May 17, 2020 10:24 am
onourway wrote:
Sun May 17, 2020 10:05 am
I can’t give you specific help on the real estate decision - however I can tell you more generally that the advice you will get here is dependent on people knowing your full picture. That you are even contemplating this indicates you are quite well off. However we don’t know anything more than that. A purchase of this magnitude for weekend use is generally in the realm of people with high seven if not 8 figure portfolios. Maybe that’s you. If it’s not, this is probably over-extending yourself a bit too much, and concentrating risk in a single asset.

For most people, a hotel would seem to be the better option. At your budget you could easily afford a beautiful suite in NY every weekend. It would be cleaned and stocked and you would have no obligations if your mood or priorities changed. There is a reason many successful people use this model instead of owning something.
I totally agree with you. I'm in seven figure zone but not high... and was looking for a modest 500k condo but yeah, still a waste of money nonetheless. I think its a stupid decision financially but thought having a place there would force me to get out of rural area and spend time in nyc and thus better QOL.

By the way, do you know of any ways I can save money if I use a hotel frequently?
No, nope, no way, nothing doing.
If you don’t already spend your free time in the city, spending $500k won’t make you do it.
Trust me.
I’ve spend oodles of money on gym memberships thinking it would force me into the gym. Do I need to spell out how that worked out?
Last edited by veindoc on Sun May 17, 2020 10:36 am, edited 1 time in total.

Luckywon
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Re: Need help from NYC Real Estate Experts!!!

Post by Luckywon » Sun May 17, 2020 10:35 am

Buying a condo in NYC under the circumstances you describe sounds like an absolutely dreadful decision to me. Purchasing and maintaining the property will be time consuming. Best outcome, you will be confined to a place far less pleasant than if you allocated the same resources to a hotel. It goes down steeply from there including the not unlikely scenario of a financial bath due to property value decrease or costly liability/litigation issue. I say this with the best of intentions: based on what you state in your OP, I think your money would be better spent on psychotherapy and hotels.

WS1
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Re: Need help from NYC Real Estate Experts!!!

Post by WS1 » Sun May 17, 2020 10:39 am

I’d always thought the pied-a-terre value proposition was driven by insanely high mid week hotel rates. As someone very sympathetic to your plight, this would be my thought process.

1. Frequency of use
2. Cost of hotel for that number of nights (adjust up for peak weekends)
3. Are the hotel rooms in the same neighborhoods you would buy—I’m guessing not a chance(this is a benefit of having an apartment) A hotel room will be in handful of manhattan neighborhoods but you could rent or buy ANYWHERE in NYC
4. True cost comp (rent - property tax/maint/interest - hotel)

NJ-Irish
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Re: Need help from NYC Real Estate Experts!!!

Post by NJ-Irish » Sun May 17, 2020 10:44 am

If you are thinking about buying real estate in NYC Through the lenses of financial sense, you know the problems with that.

It’s very hard to predict the future with the real estate market. I work in Midtown and my megacorp company is very seriously reevaluating their real estate footprint. If this becomes a trend I would think RE prices will adjust. Long story short, don’t consider it an investment, and don’t think of it as a ‘discount’. The price is the price.

My remaining advice would be to make sure all your other boxes are checked in terms of your emergency fund, your retirement, any other significant savings goals, and that you can afford it within your monthly budget. After that, live your life.

Mr. Rumples
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Re: Need help from NYC Real Estate Experts!!!

Post by Mr. Rumples » Sun May 17, 2020 11:32 am

Read the governing documents to ensure you can let family members stay there when you are not there. Rules can be crazy. Letting a guest stay in your unit when you are not there may or may not be allowed. It gets trickier when the guest uses on site facilities like the pool or gym and even more complex when they bring a friend along. The rules might also specify to whom a key or access code can be given to.

But in addition to the above, you have to jump through all the hoops that buying into a condo involves such as making sure it is well run, that their reserves are in order, their special assessment history and on and on. For some, living in a condo is great, for others its not ideal.

gr7070
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Re: Need help from NYC Real Estate Experts!!!

Post by gr7070 » Sun May 17, 2020 11:42 am

NJ-Irish wrote:
Sun May 17, 2020 10:44 am
make sure all your other boxes are checked in terms of your emergency fund, your retirement, any other significant savings goals, and that you can afford it within your monthly budget. After that, live your life.
This.

yules
Posts: 57
Joined: Wed Nov 27, 2019 10:31 am

Re: Need help from NYC Real Estate Experts!!!

Post by yules » Sun May 17, 2020 11:44 am

newyorker wrote:
Sun May 17, 2020 8:16 am
Hi Guys,

I am a guy in mid 30 looking to buy a pied-a-terre condo in NYC. I am looking for a condo (not a co-op) with budget of less than 1 mil and as cheap of maintenance/tax as possible. The reason I am looking for a place is because I've been sent to rural NY due to job reason and boredom during the weekend is pretty unbearable.

With recent COVID19, I've seen the price at NYC condos drop quite a bit. I am wondering if it is a sound (or at least not a horrible) financial decision. NYC condos have huge (at least 1100/month on tax + maintenance for a studio) carrying cost.

I understand getting a hotel room during the weekend makes more sense but the hassle of getting hotel room every weekend doesn't seem to be worth it. Also, I plan to let my family use the place while I'm not there. I understand this is not the best way to spend money, but I think spending weekend in nyc will help me mentally (of course post covid19)




What do you guys think? And any recommendations or suggestions on what I should do?

Thank you.
OP,

I know that you said you lived in NYC for 15+ years, but that New York is gone. (When I visit, I compare the commercialization of Times Square to the rough and lewd Times Square of my parents’ stories.) But also, whatever New York that you thought you knew from last year might be gone also. We still don’t know how COVID Is going to change things long term. What if you have to wait on a 1 hour line to get into a museum? What if to get into that exclusive restaurant instead of waiting 3 months, you have to wait 9 months because of reduced seating capacity? What if the subways are shut down permanently every night instead of 24/7. What if those famous clubs need to shut down and you can’t mosh anymore? There’s a lot unknown.

In short, what if you can’t have all the fun in New York that you think you’re going to have?

If you are comfortable with the risk, it’s your money, and I wish you a lot of luck, because as you say, it’s a big percentage of your net worth and high monthly expenses. But be sure to be comfortable with the amount of risk/unknown.

Yules

tiburblium
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Re: Need help from NYC Real Estate Experts!!!

Post by tiburblium » Sun May 17, 2020 11:52 am

Seems like a very risky time to be buying real estate in the hyper inflated markets in which the land price is heavily influenced by local job market, like NYC, SF, etc

Why not just continue to use hotels and/or rent in city as required for the next 2-3 years? If I was a betting man it seems pretty unlikely for prices to remain at current levels, let alone increase...though to be fair I thought the same about SF RE back in 2000 (doh!).
Last edited by tiburblium on Sun May 17, 2020 11:56 am, edited 1 time in total.

bugleheadd
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Re: Need help from NYC Real Estate Experts!!!

Post by bugleheadd » Sun May 17, 2020 11:54 am

Who knows when the lockdown will end. And what about next winter when virus will be rampant again, there will be recurring lockdown. Would you really want to buy into this? You wouldn't be able to enjoy the city life that you were expecting. Restaurants , broadway, museums shut down

I would do Airbnb if you really want to scratch you itch. Cheaper than owning or hotel.

I would not do hotels period. NYC is putting up homeless in hotels, even luxury ones. You have no idea if you booked a hotel room that housed the homeless.

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ram
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Re: Need help from NYC Real Estate Experts!!!

Post by ram » Sun May 17, 2020 12:03 pm

Whether this is a non terrible idea really depends on how much you have in the bank. 1 million or 10 or 100.
Or at least how much you make.
One house and one spouse is a commonly espoused belief on this board.
Ram

iljets10
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Re: Need help from NYC Real Estate Experts!!!

Post by iljets10 » Sun May 17, 2020 12:10 pm

Prices in NYC did not bottom until 2012, 4 years after Lehman failed. I would not be rushing in to buy in this market.

Topic Author
newyorker
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Re: Need help from NYC Real Estate Experts!!!

Post by newyorker » Sun May 17, 2020 12:32 pm

bugleheadd wrote:
Sun May 17, 2020 11:54 am
Who knows when the lockdown will end. And what about next winter when virus will be rampant again, there will be recurring lockdown. Would you really want to buy into this? You wouldn't be able to enjoy the city life that you were expecting. Restaurants , broadway, museums shut down

I would do Airbnb if you really want to scratch you itch. Cheaper than owning or hotel.

I would not do hotels period. NYC is putting up homeless in hotels, even luxury ones. You have no idea if you booked a hotel room that housed the homeless.


You serious? I like nyc but couldnt deal with its BS policies. And i thought airbnb less than 30 days in nyc was illegal... or are these people just doing it anyways?


Looked into timeshare but its more expensive than hotel... why bother

bugleheadd
Posts: 251
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Re: Need help from NYC Real Estate Experts!!!

Post by bugleheadd » Sun May 17, 2020 1:14 pm

newyorker wrote:
Sun May 17, 2020 12:32 pm
bugleheadd wrote:
Sun May 17, 2020 11:54 am
Who knows when the lockdown will end. And what about next winter when virus will be rampant again, there will be recurring lockdown. Would you really want to buy into this? You wouldn't be able to enjoy the city life that you were expecting. Restaurants , broadway, museums shut down

I would do Airbnb if you really want to scratch you itch. Cheaper than owning or hotel.

I would not do hotels period. NYC is putting up homeless in hotels, even luxury ones. You have no idea if you booked a hotel room that housed the homeless.


You serious? I like nyc but couldnt deal with its BS policies. And i thought airbnb less than 30 days in nyc was illegal... or are these people just doing it anyways?


Looked into timeshare but its more expensive than hotel... why bother
https://ny.curbed.com/2020/4/13/2121888 ... s-shelters

Im sur ethis is probably not unique to NYC, plenty of big cities across the coutry putting up homeless in hotel rooms. even before covd 19, nyc was puttign up homeless families for $600/night in hotel rooms. no wonder diblasio is begging for federal money

airbnb is still allowed i believe , but i think there are strict rules.

Topic Author
newyorker
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Re: Need help from NYC Real Estate Experts!!!

Post by newyorker » Tue May 19, 2020 4:01 am

Guys, I gave it a thought for few days. I really really wanna do it (I know I'm stupid) and I'm stretching it. What if I live there over the weekend and sublet it to a professional school student (location near med school) [OT comment removed by admin LadyGeek]?

Can I do that? and am I putting myself through trouble even if I sublet someone? (Since nyc is pro-tenant)

Topic Author
newyorker
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Re: Need help from NYC Real Estate Experts!!!

Post by newyorker » Tue May 19, 2020 4:30 am

https://i.postimg.cc/4yX5YqrP/wth.jpg

I saw this condo in lenox hill which is a nice area. Price actually dropped from 2008 value. Is NYC real estate a bad investment?

time>money
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Re: Need help from NYC Real Estate Experts!!!

Post by time>money » Tue May 19, 2020 4:41 am

How about spend a fraction of the cost of a NYC apt to get yourself a nicer place where you are, one with a good floorplan for sharing (guest wing, cottage, etc). Then look for someone in NYC (or for that matter anywhere interesting) who wants a country refuge, and then swap from time to time?

wfrobinette
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Re: Need help from NYC Real Estate Experts!!!

Post by wfrobinette » Tue May 19, 2020 2:33 pm

bugleheadd wrote:
Sun May 17, 2020 11:54 am
Who knows when the lockdown will end. And what about next winter when virus will be rampant again, there will be recurring lockdown. Would you really want to buy into this? You wouldn't be able to enjoy the city life that you were expecting. Restaurants , broadway, museums shut down

I would do Airbnb if you really want to scratch you itch. Cheaper than owning or hotel.

I would not do hotels period. NYC is putting up homeless in hotels, even luxury ones. You have no idea if you booked a hotel room that housed the homeless.
You have no idea if Airbnb just housed a covid illness either. At least you know the sheets are getting washed in a hotel.

iljets10
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Re: Need help from NYC Real Estate Experts!!!

Post by iljets10 » Tue May 19, 2020 2:49 pm

newyorker wrote:
Tue May 19, 2020 4:30 am
https://i.postimg.cc/4yX5YqrP/wth.jpg

I saw this condo in lenox hill which is a nice area. Price actually dropped from 2008 value. Is NYC real estate a bad investment?
Did this condo originally come with a tax abatement that's now expiring? This is a very common issue in NY real estate. The current owner paid a higher price because of the abatement which they then paid back over time. Very, very common. Here on the Upper West Side this has caused an oversupply:

https://www.nytimes.com/2019/12/06/real ... ondos.html

Topic Author
newyorker
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Re: Need help from NYC Real Estate Experts!!!

Post by newyorker » Tue May 19, 2020 6:24 pm

iljets10 wrote:
Tue May 19, 2020 2:49 pm
newyorker wrote:
Tue May 19, 2020 4:30 am
https://i.postimg.cc/4yX5YqrP/wth.jpg

I saw this condo in lenox hill which is a nice area. Price actually dropped from 2008 value. Is NYC real estate a bad investment?
Did this condo originally come with a tax abatement that's now expiring? This is a very common issue in NY real estate. The current owner paid a higher price because of the abatement which they then paid back over time. Very, very common. Here on the Upper West Side this has caused an oversupply:

https://www.nytimes.com/2019/12/06/real ... ondos.html


Yup tax abatement just expired. But seriously I bet tax only went up by around $10000 per year and the property lost 200k-300k in value over the course of 12 years? Is manhattan r/e not even a good investment due to its crazy high taxes?


And seems like tax abatement os a dying breed now. Lots of them used to be in fidi and upper west but most expire in 2020 and 2021. Only ones that go beyond 2030 is in harlem or near projects

bayview
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Re: Need help from NYC Real Estate Experts!!!

Post by bayview » Tue May 19, 2020 7:09 pm

newyorker wrote:
Tue May 19, 2020 6:24 pm
iljets10 wrote:
Tue May 19, 2020 2:49 pm
newyorker wrote:
Tue May 19, 2020 4:30 am
https://i.postimg.cc/4yX5YqrP/wth.jpg

I saw this condo in lenox hill which is a nice area. Price actually dropped from 2008 value. Is NYC real estate a bad investment?
Did this condo originally come with a tax abatement that's now expiring? This is a very common issue in NY real estate. The current owner paid a higher price because of the abatement which they then paid back over time. Very, very common. Here on the Upper West Side this has caused an oversupply:

https://www.nytimes.com/2019/12/06/real ... ondos.html


Yup tax abatement just expired. But seriously I bet tax only went up by around $10000 per year and the property lost 200k-300k in value over the course of 12 years? Is manhattan r/e not even a good investment due to its crazy high taxes?


And seems like tax abatement os a dying breed now. Lots of them used to be in fidi and upper west but most expire in 2020 and 2021. Only ones that go beyond 2030 is in harlem or near projects
“Seriously I bet” doesn’t come anywhere near doing your due diligence.

Good Lord, do some research and figure out what you are looking at. Maybe it’s great, but no way of knowing with what you have posted so far.
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri

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pondering
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Re: Need help from NYC Real Estate Experts!!!

Post by pondering » Tue May 19, 2020 8:58 pm

This podcast may be of general interest:

https://podcasts.google.com/feed/aHR0cD ... AQBg&hl=en
--Robert Sterbal | 412-977-3526 call/text, I find speech easier than writing

sd323232
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Re: Need help from NYC Real Estate Experts!!!

Post by sd323232 » Tue May 19, 2020 9:02 pm

newyorker wrote:
Sun May 17, 2020 8:16 am
Hi Guys,

I am a guy in mid 30 looking to buy a pied-a-terre condo in NYC. I am looking for a condo (not a co-op) with budget of less than 1 mil and as cheap of maintenance/tax as possible. The reason I am looking for a place is because I've been sent to rural NY due to job reason and boredom during the weekend is pretty unbearable.

With recent COVID19, I've seen the price at NYC condos drop quite a bit. I am wondering if it is a sound (or at least not a horrible) financial decision. NYC condos have huge (at least 1100/month on tax + maintenance for a studio) carrying cost.

I understand getting a hotel room during the weekend makes more sense but the hassle of getting hotel room every weekend doesn't seem to be worth it. Also, I plan to let my family use the place while I'm not there. I understand this is not the best way to spend money, but I think spending weekend in nyc will help me mentally (of course post covid19)




What do you guys think? And any recommendations or suggestions on what I should do?

Thank you.
lots of people are leaving big cities in droves after coronavirus. im sure if you wait another year, you will find lower price for the apartment you want to buy today.

Topic Author
newyorker
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Re: Need help from NYC Real Estate Experts!!!

Post by newyorker » Tue May 19, 2020 9:05 pm

pondering wrote:
Tue May 19, 2020 8:58 pm
This podcast may be of general interest:

https://podcasts.google.com/feed/aHR0cD ... AQBg&hl=en


Thank you.

Is there forum of some sort that deals with NYC real estate? I checked into streeteasy forum but it was not good.

Archimedes
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Re: Need help from NYC Real Estate Experts!!!

Post by Archimedes » Wed May 20, 2020 4:42 am

I have a question. Is your motivation to purchase based on wanting to spend weekends in the city? Or is it more that you are enamored with the idea that you want to own a place in NYC?

Many NYC dwellers leave for their country homes every weekend. How about you make a deal to rent a home in NYC for the weekends? There are many New Yorkers who would love to do something like this for a modest sum. Or depending on how far you live from the city, find a nice place to live where you are living during the week, and simply swap with a city dweller every weekend, at no cost. I have a friend with a home in Columbia county who did this and had a great time every weekend in the city in their free swap apartment.

Topic Author
newyorker
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Re: Need help from NYC Real Estate Experts!!!

Post by newyorker » Wed May 20, 2020 6:18 am

Archimedes wrote:
Wed May 20, 2020 4:42 am
I have a question. Is your motivation to purchase based on wanting to spend weekends in the city? Or is it more that you are enamored with the idea that you want to own a place in NYC?

Many NYC dwellers leave for their country homes every weekend. How about you make a deal to rent a home in NYC for the weekends? There are many New Yorkers who would love to do something like this for a modest sum. Or depending on how far you live from the city, find a nice place to live where you are living during the week, and simply swap with a city dweller every weekend, at no cost. I have a friend with a home in Columbia county who did this and had a great time every weekend in the city in their free swap apartment.

Im more enamores with having my own small shoebox in nyc. Btw are you the same guy in RL?

abat.rama
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Re: Need help from NYC Real Estate Experts!!!

Post by abat.rama » Wed May 20, 2020 7:47 am

newyorker wrote:
Sun May 17, 2020 8:16 am
Hi Guys,

I am a guy in mid 30 looking to buy a pied-a-terre condo in NYC. I am looking for a condo (not a co-op) with budget of less than 1 mil and as cheap of maintenance/tax as possible. The reason I am looking for a place is because I've been sent to rural NY due to job reason and boredom during the weekend is pretty unbearable.

With recent COVID19, I've seen the price at NYC condos drop quite a bit. I am wondering if it is a sound (or at least not a horrible) financial decision. NYC condos have huge (at least 1100/month on tax + maintenance for a studio) carrying cost.

I understand getting a hotel room during the weekend makes more sense but the hassle of getting hotel room every weekend doesn't seem to be worth it. Also, I plan to let my family use the place while I'm not there. I understand this is not the best way to spend money, but I think spending weekend in nyc will help me mentally (of course post covid19)




What do you guys think? And any recommendations or suggestions on what I should do?

Thank you.
I was thinking the same thing about 5 years ago. I worked at the middle of nowhere and weekends were brutal. I wanted to buy or rent a condo in DC. I did the pros and cons of this and eventually could not pull the trigger. Here is my 2-cent advise:

When you buy a real estate, everything is not lost. Some of it is investment. However, there is a lot of running cost and lost investment opportunity cost from the down payment. Add all these costs and see if the tradeoff is worth it. Use this NYT calculator to assess the cost. https://www.nytimes.com/interactive/201 ... lator.html

Things change overtime and will get better. Mine did. I met a beautiful woman and now I don't care much where I am at as long as I am with her. So I am somewhat glad I did not buy the real estate. But, man, those weekends at the middle of nowhere were brutal and I still don't know if, at the time, I did a good decision to forgo present enjoyment for who-knows-what future enjoyment. I bet you are doing all the right things (e.g. you took this job) to accumulate wealth but at some point I fear the tradeoff may not be worth it.

All in all, see if the numbers in the NYT calculator make sense for you. If you can afford it, pull the plug and enjoy life a litte.

Topic Author
newyorker
Posts: 24
Joined: Sun May 17, 2020 7:59 am

Re: Need help from NYC Real Estate Experts!!!

Post by newyorker » Wed May 20, 2020 8:07 am

abat.rama wrote:
Wed May 20, 2020 7:47 am
newyorker wrote:
Sun May 17, 2020 8:16 am
Hi Guys,

I am a guy in mid 30 looking to buy a pied-a-terre condo in NYC. I am looking for a condo (not a co-op) with budget of less than 1 mil and as cheap of maintenance/tax as possible. The reason I am looking for a place is because I've been sent to rural NY due to job reason and boredom during the weekend is pretty unbearable.

With recent COVID19, I've seen the price at NYC condos drop quite a bit. I am wondering if it is a sound (or at least not a horrible) financial decision. NYC condos have huge (at least 1100/month on tax + maintenance for a studio) carrying cost.

I understand getting a hotel room during the weekend makes more sense but the hassle of getting hotel room every weekend doesn't seem to be worth it. Also, I plan to let my family use the place while I'm not there. I understand this is not the best way to spend money, but I think spending weekend in nyc will help me mentally (of course post covid19)




What do you guys think? And any recommendations or suggestions on what I should do?

Thank you.
I was thinking the same thing about 5 years ago. I worked at the middle of nowhere and weekends were brutal. I wanted to buy or rent a condo in DC. I did the pros and cons of this and eventually could not pull the trigger. Here is my 2-cent advise:

When you buy a real estate, everything is not lost. Some of it is investment. However, there is a lot of running cost and lost investment opportunity cost from the down payment. Add all these costs and see if the tradeoff is worth it. Use this NYT calculator to assess the cost. https://www.nytimes.com/interactive/201 ... lator.html

Things change overtime and will get better. Mine did. I met a beautiful woman and now I don't care much where I am at as long as I am with her. So I am somewhat glad I did not buy the real estate. But, man, those weekends at the middle of nowhere were brutal and I still don't know if, at the time, I did a good decision to forgo present enjoyment for who-knows-what future enjoyment. I bet you are doing all the right things (e.g. you took this job) to accumulate wealth but at some point I fear the tradeoff may not be worth it.

All in all, see if the numbers in the NYT calculator make sense for you. If you can afford it, pull the plug and enjoy life a litte.

I'm glad you can relate to me. I met a girl just like you and at that point, it didn't really matter where I was. Now I'm back single, weekends are brutal and being in rural, it's really hard to meet someone new. I understand that it is a bad investment but at the same time, I feel like i'm wasting my young days in middle of nowhere and gotta make better time out of my life by having a place to stay in NYC. Maybe tradeoff ain't worth it.

henricus
Posts: 1
Joined: Fri May 22, 2020 9:45 am

Re: Need help from NYC Real Estate Experts!!!

Post by henricus » Fri May 22, 2020 10:13 am

We live in a coop in NYC and own several rental condos in NYC as well; we also have some experience with buying vacation places, so I will add my 2 cents.

Buying in NYC requires local knowledge and a lot of time on the ground visiting apartments. Closing costs for a purchase are very high, as are carrying costs. Our daughter is looking to buy; even though my wife and I are very experienced in NYC real estate and our daughter is an attorney, she is about to pull out of a purchase for the second time this year due to issues that only came out during the contract phase.

I would separate the lifestyle choice from the investment decision: if you want to spend weekends in NYC, why not start with hotel stays and if you like it, rent a studio? With Covid, landlords love to find a good tenant and rents are down. After a year or so, you will find how often you want to make the trek to NYC and you could commit more.

We have bought 2 vacation places over the years and have regretted both buying decisions. We ended up not going often enough to warrant the investment and struggled to maintain the properties from afar. Renting out temporarily is a hassle and/or costly in terms of property management. When we did visit, we would then need a few days each time to clean, reconnect utilities and fix matters.

Topic Author
newyorker
Posts: 24
Joined: Sun May 17, 2020 7:59 am

Re: Need help from NYC Real Estate Experts!!!

Post by newyorker » Fri May 22, 2020 7:48 pm

henricus wrote:
Fri May 22, 2020 10:13 am
We live in a coop in NYC and own several rental condos in NYC as well; we also have some experience with buying vacation places, so I will add my 2 cents.

Buying in NYC requires local knowledge and a lot of time on the ground visiting apartments. Closing costs for a purchase are very high, as are carrying costs. Our daughter is looking to buy; even though my wife and I are very experienced in NYC real estate and our daughter is an attorney, she is about to pull out of a purchase for the second time this year due to issues that only came out during the contract phase.

I would separate the lifestyle choice from the investment decision: if you want to spend weekends in NYC, why not start with hotel stays and if you like it, rent a studio? With Covid, landlords love to find a good tenant and rents are down. After a year or so, you will find how often you want to make the trek to NYC and you could commit more.

We have bought 2 vacation places over the years and have regretted both buying decisions. We ended up not going often enough to warrant the investment and struggled to maintain the properties from afar. Renting out temporarily is a hassle and/or costly in terms of property management. When we did visit, we would then need a few days each time to clean, reconnect utilities and fix matters.

Hello. Sent you a PM!

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