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Todd E. Crittenden's Blog

By Todd E. Crittenden | Broker in New York, NY

Buy your piece of NYC pie


                                       

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.  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.  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   $2000/ MO to rent  /  $300,000 to Purchase

The rental price is self explanatory and $2000 represents the average monthly rent price for a Murray Hill Studio. 

Purchase at $300,000 / Monthly Maintenance $800

DOWN PAYMENT:  $50,000

MORTGAGE AMOUNT: $250,000

INTEREST RATE: 4.5%

MONTHLY MORTGAGE: $1250 + $800 Maintenance = $2050

TAX DEDUCTIONS:
  • (50%) / $400 of Maintenance
  • (75%) / $938 of the Mortgage
TOTAL TAX DEDUCTION = $1338

TOTAL TAX SAVINGS  $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/MO whereas by purchasing you're spending just over $1500/MO and building equity and your net worth.  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.  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.

Regards,
Todd Crittenden
917-885-7465






  

Comments

By Pat and Steve Pribisko,  Tue Feb 21 2012, 11:33
Interesting blog. Northeast OH is in another world.

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