I'm only going to be in the NYC area for 3-5 years is it better for me to buy or rent

Asked by Angela, Sat Apr 5, 2008

I've been looking in Westchester county and I hit AMT last year so I got hit hard in taxes but I'm afraid of buying something and have it lose value

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Ben, , New York
Mon Apr 7, 2008
3-5 years? I would rent.
When you sell the house, you would need to sell for at least 6% more than what you paid just to break-even. In this market, what do you think the chances of 6% gain is? You will be lucky if you don't lose 6%.
Getting a tax break is not a good enough reason to buy. Its like paying $1 to get back 35 cents (assuming top bracket).
2 votes
Hope Mazzola, Agent, Katonah, NY
Mon Apr 7, 2008
Hi Angela,
As you know, home prices have softened nationwide over the last 6-9 months. Fortunately, Westchester County has not been affected as much as some of the other parts of the nation, due in no small part to our proximity to NYC. It, however, is a buyer's market in much of the County and there is good inventory across all price points that may be considerably more negotiable in the coming weeks and months.

Even though you are planning to be in the area for only 3-5 years, now is a very good time to buy as mortgage rates remain very low and Sellers become more motivated. Absent the crystal ball, the past 10-20 year real estate cycle would indicate that this depreciating market will correct and will be returning to a healthy appreciating market by the time you are ready to move again.
Web Reference:  http://www.hopemazzola.com
1 vote
Alen Moshkov…, Agent, Brooklyn, NY
Fri Apr 25, 2008
Angela I feel as though everyone is pulling you in 20 different directions. Everyone will always say that it is much better to buy then rent. If you are looking to live in New York for 1 or 2 years, I am going to say Rent, because if you buy something and try to flip it a year from now you won't make any money, and possibly lose. On the other hand, if you are planning on staying here for 4-5 years, I would suggest you highly consider buying. Prices have softened slightly but not what people are expecting them to drop to. Keep one thing in mind, Manhattan is a small island, there is no where to build but up, and we are running out of Air Rights and space to find a construction site. Unlike other states, we are the financial capital, and as long as we stay that way there will always be a demand for NYC property, right now we have somewhat over 6000 thousand listings and 8 million people in NY. The reason why we didn't go under is because NY is a big rental market and our Co-ops which make up most of our city have much stricter financial requirements for the buyer, they make sure that when you buy into a coop you can afford it.
In short, if you can hang on for 4-5 Years you should consider buying, and you can always put your property up for Rent, if it's a coop its usually after 2 years of living there, if it's a condo you can pretty much do whatever you desire.
Angel please let me know if you have any other questions or concerns, and let me know if you would like for me to send you 1st quarter 2008 Manhattan Market Overview Report.

Warmest Regards
P.S. my contact is on my profile and if my email isnt there its Alen.Moshkovich@elliman.com
0 votes
Fred, Home Buyer, New York, NY
Wed Apr 16, 2008
westchester is nice. look into pleasantville. great town, growing. the burbs definitely have started to get real about prices. also, look at CT - no state tax which is hard to compete with. a good metric is how far back are the discounts going on whatever home you are looking at? if you are seeing two year discounts, its worth looking at. patience will pay in this market and you will see the best deals in the 500k to 1mm range in the suburbs because the hot money jumbo market is gone. big manhattan money will be buying larger homes in the suburbs so you won't have to compete.
0 votes
Zack, , Westchester County, NY
Sun Apr 13, 2008
What type of feedback are you looking for? I can't imagine a condo with maintenance like that, and even a co-op would have to be huge for that price, that said, maintenance is an ever increasing fee you pay when you own a any condo or co-op.
0 votes
Sherry, Home Buyer, California
Sun Apr 13, 2008
You say to buy....but what about the MAINTENANCE????? I wanted to purchase a condo or coop but the maintenance was exorbitant!!! $2500 per month just for maint!!! Would love some feedback on this.
0 votes
ALBERTO S., , New York, NY
Fri Apr 11, 2008
instead of throwing your money in the waste basket on rent, it will make since to pay your own mortgage instead of someone elses.
Paying your own mortgage puts you in a different tax bracket The interest you will be paying is tax deductible meaning you will receive a portion of it at the end of the year. hope this fyi is helpful.
0 votes
Ben, , New York
Mon Apr 7, 2008
0 votes
Elissa, Home Seller, New Fairfield, CT
Mon Apr 7, 2008
I am from Westchester County and you are definitely better off buying. It will go up in 3-5 years even if it goes down right now. Just choose the right area. Lower Westchester such as Rye, Mamaroneck, White Plains.
0 votes
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