should i buy or rent now?

Asked by Big Time, San Diego, CA Mon Sep 29, 2008

in NYC? how will the financial crisis affect the prices for 2 bedroom condos in manhattan?

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7
Luke, , Nashville, TN
Tue Sep 30, 2008
Hey Big Time.

Check out the link below. It is a rent vs. buy calculator from the New York Times. Play around with the numbers and the sliding scales.
0 votes
Chris L. Chr…, , New York
Tue Sep 30, 2008
Rental prices have recently increased due to the slow down in condo sales and the increased demand for rentals, as Carmen stated. The tightened money market has eliminated some potential buyers. These are buyers that cannot obtain a documented mortgage loan.
If your intention is to purchase a primary residence, then this is a good time to buy. I'm assuming that you have a long term purchase objective. There is a larger supply on the market than we have seen in a long time. Prices have declined. They may continue to decline but from some surveys that I've seen, we are close to the bottom in sales and prices.
Mortgages are not difficult to obtain if your income, assets and credit meet the lending guidelines. These guidelines are based on common sense, similar to those which existed prior sub-prime lending.
Keep in touch.
0 votes
Carmen Di Bi…, Agent, Nyack, NY
Tue Sep 30, 2008
Anything that makes money more scarce will affect the prices. NYC does attract a good number of foreign investors because of the strength of the Euro against the dollar. However, the city has not gone unscath by the current financial crisis. Inventory is up as well as days on market. The tightening of the mortgage market will affect the number of people eligible for mortgages. This will have a direct impact on the rental market. Rental prices are expected to rise as demand for rentals increase. In addition, an increasing number of multifamily units are heading toward foreclosure. Even Tishman is having trouble getting money for his Stuyvesant conversion project.

In short, if you are buying to live in the unit and qualify for a mortgage, there are deals out there. If you are buying strictly as an investment, you must do your due diligence. I suggest speaking with a mortgage professional and have him/her do a rent vs. buy analysis.

You can contact me off line to put you in contact with a savvy real estate professional in the Manhattan market.
0 votes
Joanna Lane, Agent, Cutchogue, NY
Mon Sep 29, 2008
It all depends on your personal circumstances, but be careful at this time in NYC, especially as a first time buyer. It has been operating in a bubble for the last year or so, not impacted by the same downward pressure experienced in other parts of the country. That may change significantly over coming months as a result of the financial crisis. Do your due diligence. Long Island is a completely different market.
0 votes
Joanna Lane, Agent, Cutchogue, NY
Mon Sep 29, 2008
It all depends on your personal circumstances, but be careful buying at this time in NYC, especially as a first time buyer. It has been operating in a bubble for the last year or so, and we all know what just happened to that. My spies tell me that downward pressure on NYC RE has yet to be felt, although first time buyer condos have stalled. My crystal ball says it's going to come down a lot more in the Spring. I would hold off, keep saving and rent, but that's just me. Long Island is completely different market.
0 votes
Bill Eckler, Agent, Venice, FL
Mon Sep 29, 2008
Big Time,

Sadly enough a case can be built for both buying at this time and renting at this time...It comes down to the persons access to financial resources and personal preference.

Where will you be able to enjoy the highest quality of life and is it worth the price it will cost you to live there?

Good luck
0 votes
Gail Gladsto…, Agent, 11743, NY
Mon Sep 29, 2008
In NYC or on the outskirts, it is always better to purchase and there is not a better time than now.
Web Reference:  http://GailGladstone.com
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