Rent vs Buy in Brooklyn>Question Details

Mo25, Home Buyer in New York, NY

Young couple, income 160K per year, want 1 bedroom for 450K, good time to buy in Brooklyn, NY?

Asked by Mo25, New York, NY Thu Apr 23, 2009

Hi - We are a young couple looking to buy in downtown brooklyn, forte green, gowanus, brooklyn heights, etc. We would be able to put $100K on the downpayment, and probably carry a mortgage of $350K, so looking to buy a 1 bedroom for about $400-470K. Is now a good time to buy? With the mortgage coop fees, we would only be spending about 300 dollars more per month than our current rent. Will the value of our home appreciate in the next 5 years? Is now a good time?

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Dear Mo25,

The question is, is it a good time for YOU to buy? You can try to "time the market." In 22 years of helping homebuyers as a mortgage professional, I've never seen any "timing" work to a homebuyer's benefit. I take the approach of preparedness and persistence, instead. That's how a HomeBuyer sets the BEST time to buy a home.

Prepare to buy:

Get Prequalified for mortgage financing: focus on monthly payment
Understand your price range: determine your price limits for making offers
Know the location where you want buy your home: when you do, find an experienced Local Realtor
Have your "wish list" ready with the preferred features of the home you want: the "Dream Home" exists in our minds. Knowing your preferrred features of the home you most want helps you compromise when you find the right house at the right price that meets most of your preferred features. You can always add a fireplace later!

Persistence:

WHEN you go out there, shop 'til you drop. Buying the right home is hard work. Looking at homes, then giving concise feedback to your Realtor helps you find a home that meets your needs and a Seller willing to sell at the price you're willing to pay. You'll be disappointed a few times, that's part of the process. Stay with it and you are sure to make your own "BEST" time to buy a home.

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Wed Jun 20, 2012
Hello, I am a co-op specialist (read my blog on co-ops) and I can tell you that prices have dropped in recent months so you can get into this area for the price range you stated above. Also, the rates we are quoting now is 4.75% which is seriously low and if your credit is at least 700 or more you will benefit from a decent rate.

Are you a first time home buyer? This year only the government is giving you a FREE $8,000 tax credit. Visit my website for qualification details at: http://www.kandhhomes.com/TaxCredit.htm

All in all if you can buy a co-op in this price range in these prime areas then that automatically tells you that it's a good time to buy now!

I HAVE TWO THAT YOU CAN LOOK AT, ONE IN CLINTON HILLS AND ONE IN BROOKLYN HEIGHTS. GIVE ME A CALL TODAY AT 646-725-5941.

Rhonda Holt
Full Time Licensed Top Sales Agent
Co-op and Home Sales Specialist
Weichert Realtors, H.P Greenfield
Web Reference: http://www.KandHhomes.com
0 votes Thank Flag Link Fri Apr 24, 2009
Dear Mo25:

You can never predict what will happen in the future, but we do know that now is a great time to buy. As a consumer the best you can hope for is that you buy somewhere within the low, and right now both prices and mortgage rates are low which is rare and usually not the case.

You also have to keep in mind that when you own a property, the interest you pay on your mortgage and a portion of the maintenance you pay on the co-op are an income tax deduction. Speak to your accountant, I would not be surprised if co-op ownership would save you $6,000.00 per year on your income taxes, thats $500.00 per month. When you factor in your tax savings you will actually be paying LESS than your current rent!

In addition to all that, as a first time buyer the government will literally hand you up to $8,000.00 if you close your deal by November 30, 2008!! You can see further details on this at the IRS web site at http://www.irs.gov/newsroom/article/0,,id=205416,00.html

Given today's rates which average about 5% for a 30 year fixed mortgage, a loan of $350,000.00 as you mentioned would cost you $1,880.00 per month ( and you may very well be able to get a rate even lower than 5%!).

The long and short of is that now is a great time to buy in Brooklyn! Real estate in general has always proven to be the lowest risk form of investment a consumer can make especially when it is to be used as your primary residence. Homeownership is also the best and easiest way to accumulate wealth in America.

If I can be of further assistance please let me know and good luck!

Sincerely,
Mitchell Feldman
Associate Broker
Madison Estates & Properties, Inc.
Office: (718) 645-1665
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Fri Apr 24, 2009
Yes, it is a fabulous time to buy because prices are down and interest rates are at a historically unprecendented low. As far as the tax credit, it is not a blanket thing, it is based upon income. For a couple $150K combined income is the limit, though there is partial availability between $150K and $170K. The first step is to pre-qualify with a lender. I would be happy to refer you to the mortgage representative at Wells Fargo I deal with. Their rates are very competitive. You should also use a really good buyer's agent (no cost to you as the seller pays the commission). Feel free to contact me to answer any more questions or to take you step by step through the process.

Jenet Levy
jlevy@cbpreviewsnyc.com
0 votes Thank Flag Link Thu Apr 23, 2009
Hi Mo25,

Now is a perfect time to buy. Interest rates are low, prices are down and if this is your first home, you can qualify for a $8,000 tax credit. It's impossible to time the market or say what home prices will do. However, if you're ready and able to buy, this is the time.

I would love to help you find the apartment you're looking for. Feel free to give me a call.

Elaine Cooper
Weichert Greenfield
Licensed Real Estate Professional
917-544-2662
0 votes Thank Flag Link Thu Apr 23, 2009
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