Is it absolutely foolish to buy a 1BR in NYC for ~$500k?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'd say go for it but would be very curious about where/what you're looking at. Airbnb's are crazy popular in popular parts of NYC.

Thanks for the response!

Haven't made up my mind at all, but most likely somewhere in Flatbush, Prospect Lefferts Gardens, Crown Heights, or Bed-Stuy, as those neighborhoods are still a bit more affordable. I would ideally love a place closer to Manhattan (Clinton Hill, Downtown Brooklyn, Boerum Hill, Fort Greene, etc.) but those look to be a bit out of budget... but we'll see. Any recommendations? And curious, have you owned in NYC before?

Why not just rent in one of those nicer neighborhoods? I'd much rather rent a 1BR in Carroll Gardens or Fort Greene than deal with owning a crappy 1BR condo/co-op in Flatbush or Crown Heights.

A lot of Crown Heights is gorgeous—you obviously don’t know NYC well.

[Anonymous]

Anonymous wrote:What's the thinking on ground floor apartments in NYC? Avoid at all cost, or a boon in disguise?

It really depends on the apartment. If there is enough light, low foot traffic on the street and the apartment comes with an outdoor space, even a tiny one, those are in big demand. I was always amused by maisonettes - first/ground floor apartments in large buildings with a separate entrance from the street - I don't see the attraction, but there are enough people who actually seek them for whatever reason.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'd say go for it but would be very curious about where/what you're looking at. Airbnb's are crazy popular in popular parts of NYC.

Thanks for the response!

Haven't made up my mind at all, but most likely somewhere in Flatbush, Prospect Lefferts Gardens, Crown Heights, or Bed-Stuy, as those neighborhoods are still a bit more affordable. I would ideally love a place closer to Manhattan (Clinton Hill, Downtown Brooklyn, Boerum Hill, Fort Greene, etc.) but those look to be a bit out of budget... but we'll see. Any recommendations? And curious, have you owned in NYC before?

Why not just rent in one of those nicer neighborhoods? I'd much rather rent a 1BR in Carroll Gardens or Fort Greene than deal with owning a crappy 1BR condo/co-op in Flatbush or Crown Heights.

A lot of Crown Heights is gorgeous—you obviously don’t know NYC well.

Yep, many people don't realize that the area near Brooklyn Botanic garden/ Brooklyn Museum/ behind the central library is Crown Heights. Plus, of course, the brownstones and limestones.

[Anonymous]

There are helpful calculators on rent v own where you can play with costs and your time horizon. Fees in NYC make it hard.

[Anonymous]

Anonymous wrote:Foolish. Condos do not appreciate the same way SFHs do. Depending on how long you intend to hold onto it, you will be lucky getting even a marginal ROI. Already know multiple people who bought condos within the last year who have tried to sell only to delist after sitting unsold for months.

In NYC? Condos do fine. If a person can’t afford a SFH, condo is fine.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What's the thinking on ground floor apartments in NYC? Avoid at all cost, or a boon in disguise?

It really depends on the apartment. If there is enough light, low foot traffic on the street and the apartment comes with an outdoor space, even a tiny one, those are in big demand. I was always amused by maisonettes - first/ground floor apartments in large buildings with a separate entrance from the street - I don't see the attraction, but there are enough people who actually seek them for whatever reason.

I’d check whether that area floods or not. During a hurricane, some apartments were underwater but only in some areas.

[Anonymous]

Anonymous wrote:Foolish. Condos do not appreciate the same way SFHs do. Depending on how long you intend to hold onto it, you will be lucky getting even a marginal ROI. Already know multiple people who bought condos within the last year who have tried to sell only to delist after sitting unsold for months.

Manhattan and Los Angeles are different real estate beasts - the suburban laws of Bethesda house prices definitely do not apply there.

[Anonymous]

Anonymous wrote:Why NYC? Do you have family there? Do you work there? You can invest in real estate where you live. Not worth a lot of 95 and tunneling.

OP here. I live in New York. (This is the metro NYC board)

What do you mean by 95 and tunneling?

[Anonymous]

Anonymous wrote:I have enough money for a downpayment of about $110k. I'm young (28), single, but I'd love a place to call home for at least the next couple of years (maybe 4-5 years before thinking of selling?) and would hope it would even maybe work as an investment vehicle. Would also be open to renting it out and getting some income that way. Is this smart, or is it dumb? Is being a homeowner/small-time landlord in NYC more pain than it's worth?

If your're really thinking mainly in terms of an investment, not of living in New York, maybe you'd be better off buying a parking space.

There are costs involved with owning that kind of property, too, but at least you don't have to worry about plumbing problems. And you could buy the property outright, without having to worry about interest payments. The hard part would just be figure out where you go to find lots for sale.

If you really want to be an apartment subletter, I'd look for the cheapest possible place in Manhattan that you could rent to Columbia or NYU students, rather than planning to rent a unit out through AirBnB.

If you can rent through AirBnb, that's great, but a lot of places hate AirBnB and impose tough restrictions on that. But you might still be able to benefit a little from medium short term rentals by renting units to university students or faculty members.

[Anonymous]

I've rented and owned in NYC and I strongly prefer renting. Maintenance is simpler in a rental, the buying & selling process is annoying and expensive in NYC, and appreciation is not that great. On the time frame you're talking about, it would be better to rent and put your extra $$ in an index fund.

[Anonymous]

Do not buy, rent first. I made the mistake of buying a condo in South Queens and had to sell at a major loss after having rented it out to tenants who were hit or miss. NYC has the pro tenant courts so if you have a bad tenant, forget about being able to evict them because NYC local judges usually side with the tenants.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'd say go for it but would be very curious about where/what you're looking at. Airbnb's are crazy popular in popular parts of NYC.

Thanks for the response!

Haven't made up my mind at all, but most likely somewhere in Flatbush, Prospect Lefferts Gardens, Crown Heights, or Bed-Stuy, as those neighborhoods are still a bit more affordable. I would ideally love a place closer to Manhattan (Clinton Hill, Downtown Brooklyn, Boerum Hill, Fort Greene, etc.) but those look to be a bit out of budget... but we'll see. Any recommendations? And curious, have you owned in NYC before?

Why not just rent in one of those nicer neighborhoods? I'd much rather rent a 1BR in Carroll Gardens or Fort Greene than deal with owning a crappy 1BR condo/co-op in Flatbush or Crown Heights.

A lot of Crown Heights is gorgeous—you obviously don’t know NYC well.

Yep, many people don't realize that the area near Brooklyn Botanic garden/ Brooklyn Museum/ behind the central library is Crown Heights. Plus, of course, the brownstones and limestones.

Actually that area would be considered Prospect Heights. But point taken. Crown Heights has become quite gentrified in some parts. I know a couple who bought a condo in a brand new building there for like $800K.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'd say go for it but would be very curious about where/what you're looking at. Airbnb's are crazy popular in popular parts of NYC.

Thanks for the response!

Haven't made up my mind at all, but most likely somewhere in Flatbush, Prospect Lefferts Gardens, Crown Heights, or Bed-Stuy, as those neighborhoods are still a bit more affordable. I would ideally love a place closer to Manhattan (Clinton Hill, Downtown Brooklyn, Boerum Hill, Fort Greene, etc.) but those look to be a bit out of budget... but we'll see. Any recommendations? And curious, have you owned in NYC before?

Why not just rent in one of those nicer neighborhoods? I'd much rather rent a 1BR in Carroll Gardens or Fort Greene than deal with owning a crappy 1BR condo/co-op in Flatbush or Crown Heights.

A lot of Crown Heights is gorgeous—you obviously don’t know NYC well.

I'm from New York and have lived in Brooklyn for more than ten years (Manhattan before that).

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'd say go for it but would be very curious about where/what you're looking at. Airbnb's are crazy popular in popular parts of NYC.

Thanks for the response!

Haven't made up my mind at all, but most likely somewhere in Flatbush, Prospect Lefferts Gardens, Crown Heights, or Bed-Stuy, as those neighborhoods are still a bit more affordable. I would ideally love a place closer to Manhattan (Clinton Hill, Downtown Brooklyn, Boerum Hill, Fort Greene, etc.) but those look to be a bit out of budget... but we'll see. Any recommendations? And curious, have you owned in NYC before?

Why not just rent in one of those nicer neighborhoods? I'd much rather rent a 1BR in Carroll Gardens or Fort Greene than deal with owning a crappy 1BR condo/co-op in Flatbush or Crown Heights.

A lot of Crown Heights is gorgeous—you obviously don’t know NYC well.

Yep, many people don't realize that the area near Brooklyn Botanic garden/ Brooklyn Museum/ behind the central library is Crown Heights. Plus, of course, the brownstones and limestones.

"Near" those things is Crown Heights, sure, though I imagine if OP is also considering neighborhoods like Flatbush then he's probably not looking to buy anything west of Classon or Franklin, in the area that's more culturally akin to Prospect Heights.

[Anonymous]

In NYC AIRBnB is illegal less than 30 days unless owner is also in unit. Folks do it anyhow but if a condo don’t bet on it covering mortgage as it can end.

[Anonymous]

Anonymous wrote:If I were to live in NYC again, I'd buy either downtown, lower East side in alphabet city in Manhattan, or way up on the Upper West side, Amsterdam Ave etc.

It's not the 90's anymore, you know.