Is it absolutely foolish to buy a 1BR in NYC for ~$500k?
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Anonymous
A disaster. Rented once and never again. Impossible to ever open the window shades, people passing by just naturally look inside. Friends stopping by non-stop, just because they see you inside 
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Anonymous
I suggest checking citizen app for crime on daily basis to have an idea which parts of these neighborhoods are safe for a single young woman to live in. NYC isn't "sex in the city" scene any longer, crime is up, there are stretches of Flatbush and Bedford-Stuyvesant that having shootings and muggings on weekly basis. Honestly, I wouldn't live in an area that isn't already pretty safe and nice. Appreciation in NYC had been crappy unless you bought decades ago. Even those who bought 10 years ago are barely breaking even selling becasue of all the fees and taxes they paid down and transaction fees. I wouldn't look at it as an investment to sell 10 years from now, more like a place to live now and enjoy it and then come back later when you are retired and use it as a pied-a-terre. It should keep up with inflation, but I doubt you will make any money on it. Honestly, unless you really LOVE NYC to the point where you have to be there often and for longer stretches I wouldn't buy there. For 500K you can only buy a studio or a crappy convertible 1 bedr in Manhattan and nicer parts of Brooklyn, but you probably know this already. Also, the fees usually would add up to anything like 900-1200 a month for a small one bedroom and almost a grand for a studio. Most places are co-ops, you won't be able to afford a condo in your prices range as they are quite more expensive because they have no board approvals and have more flexible terms on how and whom you can rent to. You need to really learn about every building you consider buying in and make sure you understand their rules, because they are different for each building, especially if you plan renting out (it's called "subletting" in coop terms). Some do not allow subletting at all, so you are stuck paying for your own unit, it's illegal to even rent on 1 year lease to a stable tenant. Most coops have a waiting period of 1-2 years before you can even start subletting and some have restrictions on how many years you can sublet consecutive before having to take a break or before you are banned from subletting it altogether. Airbnb is even trickier with the multifamily, it's really something reserved for those who own townhomes. Most buildings prohibit airbnb and short term rentals, not to say they don't exist, but you have to be careful and usually a Condo is much easier to do a short term renting than a coop. But some condos are also tricky, especially those in very small buildings (multifamily townhomes) because most owners don't want transients in their small building. Ironically these little no-amenity buildings are the best in terms of condo fees, so will be a better bang for your buck, but you will be restricted to living there. Make sure to do some searches, use Streateasy.com. Check to see what the rules are for pied-a-terre because if you aren't living there as a full time resident you may not even be allowed to buy it at all, most larger buildings allow pied-a-terre, but some do not, prices are consequently a bit lower. Good luck. |
Anonymous
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OP, until you've actually gone to look at these places AND know what the condo fees are ... this isn't even a question.
Go. Look. Learn. Then, think some more. |
Anonymous
Exactly, especially if you are new to the city. You need to first establish your foothold there and look around and see what areas you like and don't like and plan accordingly. I's foolish to buy in NYC without really knowing NYC |
Anonymous
| I wouldn’t buy if my time horizon was 5 years or less with a plan to rent it after that. Being a landlord is IMO a huge PITA and I’d rather invest my money elsewhere. Ymmv |