Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
If you know you're going to be in NYC for more than five years and want to build your new worth buying a Co-op can be a great option. Â Many people aren't aware of how realistic and possible purchasing their piece of NYC pie can be.
I'm going to break down the cost of RENTING and PURCHASING of a STUDIO to give you an idea of how the numbers shake out. Â The RENT and PURCHASE numbers are conservative in my opinion and I'm glad to explain in more detail if anyone would like me to go into more detail.MURRAY HILL - STUDIO Â $2000/ MO to rent Â / Â $300,000 to Purchase
The rental price is self explanatory and $2000 represents the average monthly rent price for a Murray Hill Studio.Â
Purchase at $300,000 / Monthly Maintenance $800
DOWN PAYMENT: Â $50,000
MORTGAGE AMOUNT: $250,000
INTEREST RATE: 4.5%
MONTHLY MORTGAGE: $1250 + $800 Maintenance = $2050
- (50%) / $400 of Maintenance
- (75%) / $938 of the Mortgage
TOTAL TAX DEDUCTION = $1338
TOTAL TAX SAVINGS Â $1338 X 40% TAX BRACKET (Fed / State + City) $535
MONTHLY EXPENSE $2050 - TAX SAVINGS $535 = MONTHLY NET EXPENSE - $1515
Renting you're going to spend $2000/MOÂ whereas by purchasing you're spending just over $1500/MO and building equity and your net worth. Â You'll obviously need to come up with the initial downpayment of the $50,000 but I think many people don't realize how realistic and financially responsible buying can be. Â If you're interested in further explanation or want to know if you can buy a piece of pie feel free to contact me as I'm glad to share my experience and knowledge.