I am debating whether to continue to rent or start the process of buy a coop or condo in Manhattan, NYC. Is?

Asked by Will Riley, New York County, NY Mon Jul 20, 2009

there a magic number or formula to consider to determine the threshhold that you would be better off purchasing a than renting.

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4
Ralph Windsc…, Agent, Hauppauge, NY
Wed Aug 26, 2009
Probably the most important question really is how long will you stay at this property. Purchasing versus renting is almost always the best option but if you're not going to stay in a particular property long enough and prices continue to slide, it may not be the best option. Usually, if you're going to stay at least 5 years, buy now. You will start to build equity and lower your taxable income. And, after 5 years, the prices should have either become stable or gone up. One thing also: NYC's real estate market is usually pretty strong so with prices and interest rates lower than usual, buy now. Good luck.

Ralph Windschuh
Century 21 Princeton Properties
631-467-0009
0 votes
Tony Lara, , New York, NY
Tue Aug 25, 2009
I agree with most of the comments, although we're in a great climate to purchase property, rates are low, government incentives at the end of the day it's up to you. You're the one that knows your financial and career background. Depending what you do for a living you might be slightly insulated then most which is a positive for purchasing. Run the numbers, compare both and decide and please use a broker. We save you time and most of us are familiar with a lot of buildings and neighborhoods. Good luck and keep the faith!!!!
0 votes
Jeffrey Fide…, , New York, NY
Tue Aug 25, 2009
Hey Will,

Here's something that may help... http://www.scorm.ro/catalinco/chart/index.html
0 votes
Anoop Punjabi, Agent, New York, NY
Mon Jul 20, 2009
Hello Will,

I commend you for having the start of a brilliant thought. I do not know of any magic number to determine a threshhold, however that being said - if you have a long term horizon in mind (5-7 years) there is no better investment than real estate. There may be short spells when it is slightly advantageous in one direction, but in the long run - you are always better off owning when compared to renting.

Additionally, with the incentive being offered by the federal government, and the low rates on mortgage loans (lowest in more than 20 years) as well as the steep correction in property prices, there is no better time to jump in head-first. The upside potential far far outweighs the slight chance of further declines.

The key for you to be able to take advantage of the present situation, will be to have the funds for a 20-25% down payment along with decent credit. Your best bet is to contact a few banks to get pre-approved, then contact a real estate agent to represent you as a buyers broker. This way you will have someone looking out for your best interest.

If you wish to call me over the phone, we can discuss this in further detail. I would like very much to be able to help you buy your dream home.

Sincerely
Anoop Punjabi
Halstead Property LLC
Email: apunjabi@halstead.com
Tel: (212) 317-7844
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