Home Buying in New York>Question Details

Big Apple, Home Buyer in New York, NY

Want to buy a condo in Manhattan

Asked by Big Apple, New York, NY Sat Nov 26, 2011

I have total of 325K cash to spend.This is an investment.Dont want to go above 90th street.How much rent my condo would fetch?How much I would spend as property owner in taxes and condo maintainence fee monthly. What area is the best in this money and resale is easy and quick.In 4 years my oldest would be in college and I would need money.Likey have to sell this at that time.Thanks. Appreciate. Obviously would like to make money from both rental and resale.No cant go through the bank. religion ( Islam) does not permit interest based activity ie both taking and paying interest.Came from Pakistan in 1993 and fell in love with Manhattan. Married a girl from NJ. Regret never was able to go to the top of world trade center. too busy in studies at that time.I visit NJ once ayear and watch 4th of July firework from NJ.It is cool.Take my children on horse carriage ride in summer from Times Square to Central Park. they love it. I love the smell of subway trains. weird. Thanks.

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14
Hello B.A. If $325K is the total amount of money you have to spend, You wll most likely find very little inventory in your price range. Consider that a portion of that money will go to your Attorney and a small amount for the Condo application but that should be around $2K more or less.

At best you would be looking to the boroughs for a more reasonable price on a studio or small one bedroom Condo but there is more to think about.

You mention selling in four years. Opinions may vary but you may not see much appreciation at all given the current real estate market. Sure, you'll build some small amount of equity but if you use a professional to sell the Condo (and of course, you should!) You'll be paying a commission and that will surely dent your pocket. I might think it better to find another investment vehicle given your short horizon to sell. Whatever you decide, good luck.
1 vote Thank Flag Link Sun Nov 27, 2011
If you know for sure that you would need to sell in about four years, not sure why one would consider the purchase; it may not turn out to be as profitable as one may think...
1 vote Thank Flag Link Sun Nov 27, 2011
I agree with Karla. Manhattan real estate is a good long term investment. In the short term it can fluctuate. Since you will need the money in less than 5 years, I would not recommend investing in a Manhattan condo at this time.
1 vote Thank Flag Link Sun Nov 27, 2011
Mitchell Hall, Real Estate Pro in New York, NY
MVP'08
Contact
You have saved up an impressive amount of money!! Alas, your budget is a little low for a condo anywhere in Manhattan.

But I'm most concerned about your holding period, which is only 4 years, really 3.5 years because remember, you have a tenant with a lease and it's going to take time to sell the condo. That's a short time for real estate holding. The saying we have is, "Real estate is easy to get into, and hard to get out of." That last bit is what keeps real estate agents in business ;) !

Shakespeare agreed with your religion when he wrote, "Neither a borrower nor a lender be" in the play Hamlet. It's a way of living that seems so very wise to so many people right now. But this means you don't want a home equity line of credit on that condo to pay for college, so you would have to sell that condo at that time to meet this goal.

The rental market is strong in Manhattan and in much of Brooklyn right now. Vacancy rates overall in Manhattan are approximately 1%, according to a report I saw yesterday. This is keeping rents up, in some cases I find rents are increasing. The future bodes well so this aspect is not of great concern.

Karla Harby
Licensed Real Estate Salesperson
Metropolis Real Estate, Manhattan
karla.harby@gmail.com, 917-365-0876
1 vote Thank Flag Link Sun Nov 27, 2011
You need to look at the calculate the net rent yield. Check out the website below.
0 votes Thank Flag Link Fri Dec 16, 2011
Good to here your plans Big Apple,

With Proper planning and preparation anything can flourish. $325K is the total amount of money you have to spend, You wll most likely find very little inventory in your price range, but what you can do is get a well renovated co-op on a amazing block. I have a few things available I think you would love to see. Gleaming finishes, enticing details and all the charm you can desire. Consider that a portion of that money will go to your Attorney and a small amount for the Condo application but that should be around $2K more or less.

I'd be delighted to help you end our search.

Feel Free to contact me at 347.995.8701

CALL ANY BROKER IN NYC OR CALL ME I GUARANTEE YOU THE BEST DEAL. IT'S WHAT I DO FOR YOU.

HAPPY HOLIDAYS ;)
0 votes Thank Flag Link Wed Dec 14, 2011
Good to here your plans Big Apple,

With Proper planning and preparation anything can flourish. $325K is the total amount of money you have to spend, You wll most likely find very little inventory in your price range, but what you can do is get a well renovated co-op on a amazing block. I have a few things available I think you would love to see. Gleaming finishes, enticing details and all the charm you can desire. Consider that a portion of that money will go to your Attorney and a small amount for the Condo application but that should be around $2K more or less.

I'd be delighted to help you end our search.

Feel Free to contact me at 347.995.8701

CALL ANY BROKER IN NYC OR CALL ME I GUARANTEE YOU THE BEST DEAL. IT'S WHAT I DO FOR YOU.

HAPPY HOLIDAYS ;)
0 votes Thank Flag Link Wed Dec 14, 2011
Your budget will be good for co-op in this area. Your investment will be worthy.
0 votes Thank Flag Link Sun Dec 4, 2011
Hello,
It maybe difficult finding a property in the areas specified with in your budget. However, it is NOT UNHEARD OF but you must act immediately when you/your agent find one. It would more likely be a studio, alcove, & if lucky a small 1 bedroom apartment. Also, you would want to see is board allows you to rent it out, before you purchase.
As far as how much rent it would "fetch" depends on many factors, i.e. location, building type, amenities, etc. The same goes for the taxes & the common charges for the specific condo.
In this economy you may want to look into foreclosure auctions (have dealt with them personally in NYC) but this too can be difficult at times due to the process involved here; though not out of the question.

Good luck & if I may be of any assistance please feel free to contact me directly @ bmoore@manapts.com or 917.215.5300.

Thanks,
Brian Moore
Licensed Real Estate Salesperson
Manhattan Apartments, Inc
0 votes Thank Flag Link Thu Dec 1, 2011
I would be happy to help you in your search. Please contact me at 917-335-8569.

Erika from Diversified.
0 votes Thank Flag Link Mon Nov 28, 2011
Hello mr buyer
Your oldest may get a scholarship and you may not need the money for their college....
How about an easy coop, does it have to be a condo? And whya not go above the 90th? I sell there too...and there are many lovely area and new construction too...you should go out and look with a buyers broker and explore the possibilities...
Fern Hamberger
Senior Asso broker
Citi-habitats
fHamberger@citi-habitats.com
0 votes Thank Flag Link Sun Nov 27, 2011
Hi, Big Apple.
You have some good answers below. Though your budget is low for Manhattan and the brownstone neighborhoods of Brooklyn I cover, you may be able to get something in one of the other boroughs. If, as you say, you may need your cash out in 4 years, you are under the time frame usually recommended for a real estate purchase, which is generally 5 or more years. You have to factor in closing costs twice, so that wipes out modest gains. As far as your taxes and common charges, there is no generic answer. It depends on where the building is, if there is a tax abatement, how many units in the building any many things about the unit such as size, floor, etc.

Jenet Levy
Halstead Property, LLC
jlevy@halstead.com
212 381-4268
http://jenetlevy.halstead.com
0 votes Thank Flag Link Sun Nov 27, 2011
Big,
This is a complex question. It would depend on the individual property but there are not many condos in Manhattan in that location at that price. I was able to locate one studio that also has low cc and taxes under $400 a month combined. I would have to see it to know how much it could rent for but the low average for studios is appx $1500-2000 a month. Let me know your thoughts.- As to selling it when your son goes to college, that doesn't leave you much time to rent it, especially if you want to get a good tenant- and if your tenant decides they don't want to move it -may take a long time to evict them!
Jolie Muss Licensed Real Estate Broker & Brokerage
Columbus Avenue NY 10023
212 721-3301
0 votes Thank Flag Link Sun Nov 27, 2011
If you're purchasing merely as an investment and not where you're going to live, I would recommend having a good buyer's agent, propose many different scenarios which will bring you the most bang for your buck. You might look into the foreclosure market where you can find some really nice deals, not necessarily in Manhattan.

Ralph Windschuh
Associate Broker
Senior Real Estate Specialist
Certified Buyer Representative
Century 21 Princeton Properties
631-467-0009
rwindschuh@c21princetonproperties.com
0 votes Thank Flag Link Sun Nov 27, 2011
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