NYC - Rent or Buy (again...)

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kQhW78

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Growth Officer at Digital Innovation Agency
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Jul 1 31 Comments

I’ve been in NYC for 10 years mainly on the Upper East Side. I just sold my 3rd apartment. It was a 2bd 2bath for $1.7M. Bought for $1.3 and put $220k into a gut renovation

We have a 3 year old and a new one coming Sept. We have a 5-7 year timeline in NYC before we consider the suburbs

I’m really conflicted on buying a 3 bedroom and the overall real estate market. It will be at least $1.8-$2.0M for a sizable apartment in a doorman building with amenities.

If I rent - it’s $7,500-$10k/M and that’s just throwing money away.

Any opinions on NYC market??

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TOP 31 Comments
  • WeWork RPvk36
    Tc or gtfo
    Jul 1 13
    • New / Product xzUE84
      Fuck buying in brooklyn unless you intend to never leave.
      Jul 1
    • New / Consultant
      kQhW78

      New Consultant

      BIO
      Growth Officer at Digital Innovation Agency
      kQhW78more
      OP
      Svp - consulting w/commission

      I lived in BK 12 years ago in Bushwick before it was cool. Pretty tied up to the UES
      Jul 1
    • Uber / Eng newbier
      Household?
      Jul 1
    • New / Consultant
      kQhW78

      New Consultant

      BIO
      Growth Officer at Digital Innovation Agency
      kQhW78more
      OP
      Wife stays home, tutors on the side and makes more under the table than when she was a teacher with a salary and works 4 hrs per week lol
      Jul 1
    • Adobe / Mgmt omuyg76
      So your household is making over 600k a year and you still feel the need to cheat on your taxes.
      Jul 1
    • Uber TcOrDie
      You don’t get rich by giving away money
      Jul 2
    • Facebook zevx21
      The rich don't pay taxes bruh.
      Jul 2
    • New / Consultant
      kQhW78

      New Consultant

      BIO
      Growth Officer in Technology
      kQhW78more
      OP
      Well the funny thing is - she tutors for a much wealthier family. I’m talking public spot light and owns a $30M townhouse on the UES. They are the ones that want to pay under the table and not claim payroll.

      So yeaa
      Jul 2
    • Adobe / Mgmt omuyg76
      Bunch of free loaders you all are.
      Jul 2
    • Google NSFW4
      Howd they get that 30M house
      Jul 9
  • New / Consultant
    kQhW78

    New Consultant

    BIO
    Growth Officer at Digital Innovation Agency
    kQhW78more
    OP
    I’m going to be pretty liquid post closing so these calculators don’t take into account a cash purchase or making some conservative investments and subsidizing rent cost with some taxable income from the closure. I have trouble believing the output to be that accurate.

    For example, if I can get into a condo with a pool, playroom, a gym. I could cut out the Equinox memberships and kids play space memberships, sounds stupid but all that stuff rolls up
    Jul 1 5
    • Bloomberg / Eng iVX372
      Down payment percentage is taken into account by the interest rate, mortgage amount and comparable rent. Just try the calculator for different down payment percentages, and calculate additional total investment income from lower down payment as negative years renting, if using a duration-based calculator like that on nytimes.com. Definitely possible to include parking and gym savings etc, if desired.

      That said, agree that this calculator should include net worth and net ROI inputs.

      How are you earning $600k?
      Jul 1
    • New / Consultant
      kQhW78

      New Consultant

      BIO
      Growth Officer in Technology
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      OP
      Thanks, for the sources - I can dig through this.

      I’m in consulting
      Jul 1
    • Bloomberg / Eng iVX372
      No problem. Just consider renting and buying an unavoidable expense. One yields a higher net worth than the other, depending on timespan and a number of other variables. Thus, renting is not throwing money away, but potentially the cheaper unavoidable expense.

      If I were you, I'd buy in a gentrifying area (like maybe 125 St or below in Harlem). Kids are too young to care about the move and you'll still be very close to UES.

      With the upcoming housing market downturn in 0.5-2 yrs (based on Dec initial yield curve inversion), inevitable gentrification of central real estate is the safest housing investment
      Jul 1
    • New / Consultant
      kQhW78

      New Consultant

      BIO
      Growth Officer in Technology
      kQhW78more
      OP
      Thanks, yea a buddy of mine did extremely well around 116th and Fredrick Douglas, bought in 2014 for $1.4M and sold in 2018 for $2.2M - about 2 months after they opened the Whole Foods lol.

      Currently the plan is going to be to rent - but something no fee and short term. I think I still want to buy, but I want to buy value and not settle. Also gives us flexibility and time to really think about our path.

      We are reaching the point where we have to plan further than 1-3 months an actually budget lol, cash flow is good but two kids will be expensive
      Jul 1
    • Bloomberg / Eng iVX372
      Yeah. Calculator definitely should trump my Harlem recommendation. Gentrification simply adds higher appreciation to the calculation, without changing anything else.

      Still, with $600k TC you are set, especially if avoiding private schools.
      Jul 1
  • New / Consultant
    kQhW78

    New Consultant

    BIO
    Growth Officer at Digital Innovation Agency
    kQhW78more
    OP
    Thanks, I work in midtown - So the Q is super convenient, my 3 year old currently is going to Private school but I’m ok with the UES public schools. Challenge is we have a life on the UES so moving to BK is kind of a loss.
    Jul 1 0
  • 2U / Mgmt KzPL00
    I’m in a similar minds pace as you in that we have no intention of leaving our neighborhood. Every calculator I’ve used tells me renting is a better deal. Since you’ll be very liquid and have a high cash flow, it might not matter all that much. You’d have to compare the cost of owning in the kind of building you want, with amenities, vs renting. For us, my rent is far far lower than the mortgage and maintenance we’d pay on the same apartment so I feel fine staying put. Maintenance is also throwing money away, if you consider that it isn’t buying you equity in your home when you sell it.
    Jul 1 0
  • eBay / Product blitzer
    I use this NerdWallet Buy vs Rent calculator to determine which is better option. In general, if you are going to live in the place under 10 years, it’s cheaper to rent.
    https://www.nerdwallet.com/mortgages/rent-vs-buy-calculator
    Jul 1 0
  • Amazon TiCi
    If you’re not gonna live in a gentrifying borderland, just rent. It’s gonna be cheaper given your timeline with the current price to rent ratios.
    Jul 1 0
  • OFI Global / Design ZZZ999
    i feel you on not wanting to leave your community /manhattan in general. i don’t see renting as throwing your money away, i see it as buying flexibility but it would be annoying to do long term. if i were you i’d look in the UES for a walkup with no amenities, but i don’t have kids so idk your perspective
    Jul 1 2
    • New / Consultant
      kQhW78

      New Consultant

      BIO
      Growth Officer in Technology
      kQhW78more
      OP
      Yea we did try that. There are some part-time doorman buildings or buildings with light amenities. Some of these building carrying costs can be $3-4K/M for 1500 square feet

      I don’t want to leave where we are and I’m happy to pay the premium for convenience. I’m just looking down $100k/yr thrown away for the next 5-7 years as a scary thing
      Jul 1
    • Google NSFW4
      It's not thrown away I don't understand that logic. How much is the annual property tax, HOA, and insurance ? Should offset that by rent. Secondly, you consumed housing during that period . Did you throw money away on food?
      Jul 9
  • Square / Eng SQ
    Buy in guttenberg, live like a king
    Jul 1 0
  • Oscar 🐨koala
    Buy a house, don’t buy an apartment? Plenty around 1-1.2M in Queens. Why buy expensive apartment I don’t get it...
    Jul 1 1
    • New / Consultant
      kQhW78

      New Consultant

      BIO
      Growth Officer at Digital Innovation Agency
      kQhW78more
      OP
      Neither do I, but Queens is not me. I have a summer house that we use from May-Sept to get out of the city I don’t want another right now
      Jul 1
  • Bloomberg / Eng iVX372
    Just Google "rent or buy calculator." There are some that calculate the most financially advantageous choice for free, taking your timeline into account
    Jul 1 0