Buy or rent in NYC?

Google
buy_o_rent

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buy_o_rent
Nov 6, 2021 14 Comments

Moving back to nyc and consider buying a place.

Reasons:
- The interest rate is low now (main reason)
- I know I want to stay in nyc for several years (happily moving back from the Bay Area)
- moving there soon and looking to rent/buy
- The rent seems high compared to 2019 when I moved out.
- Diversify my net worth from $GOOG

Reasons not to:
- I can't afford what I like the most right now
- I'll need to move most of my savings and investment to the down payment
- Probably not enough time: I need a place by January 2022. Friends told me that it takes several months to actually get one.

Preference:
- studio or 1br in UWS/UES/Hell's kitchen (I like Chelsea and the west village but can't afford it)
- close to subway stations
- those Hudson yards buildings are too far
- modern/new-ish buildings
- In-unit washer and dryer (nice to have)

The rent for apartments satisfying these conditions are easily 3000+. That's why I started considering buying.

There are many new development in LIC with tax abatement. Those are pretty tempting but I prefer Manhattan.

What do blinders think ? Thanks 🙏 !
- Buy?
- Rent?
- Buy LIC new buildings ?

Some background:
- male, single, mid 30s, gay, POC
- YOE 4 in tech
- TC 350 (vested)

#mortgage #housing #nyc #tech #realestate #faang

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TOP 14 Comments
  • Amazon
    ownsAk

    Go to company page Amazon

    ownsAk
    Don't buy on impulse. Explore every neighborhood you're interested every weekend. Does it have your fav gym, grocery nearby, etc. The NY today might not be the NY you once knew. Congrats on fat savings to be able to afford NYC housing tho lol
    Nov 6, 2021 1
    • Google
      buy_o_rent

      Go to company page Google

      buy_o_rent
      OP
      Agree and thank you for your advice! I moved out of nyc coincidentally right before the pandemic (late 2019) and have explored many neighborhoods before. Also in nyc on and off since July. That's why I know I like the new apartment (and tax abatement) in LIC but the neighborhood itself, not so much.
      Nov 6, 2021
  • With that short of a timeline, you might wind up buying something you don’t like
    Nov 6, 2021 0
  • Just curious to know NYC prices these days... What are you seeing in terms of listed price for apartments that meet your criteria?
    Nov 6, 2021 3
  • Citadel
    hRBe32

    Go to company page Citadel

    hRBe32
    while abated units are attractive, they do go down in value once abatement is over. For example compare fidi units purchased in 2010-2013 period vs where they were at in 2019 pre-pandemic. Of all manhattan neighborhoods you listed, UES (near Q train stops) will give you most value, but also furthest from your office.
    Nov 6, 2021 1
  • Google
    PixelDud

    Go to company page Google

    PixelDud
    Are you absolutely certain you want to stick to those neighborhoods? LIC is okay, but lacks culture. The Manhattan neighborhoods you mentioned are all pretty expensive. Also most apartments in Manhattan are HOAs and have terrible rules which make them really difficult to rent the apartment out if you want to.

    I'd suggest renting for a while before you're really certain about where you want to live.

    Also have you thought about Brooklyn? Williamsburg, Greenpoint, Bushwick etc are barely a 20 min subway ride from the office.
    Nov 6, 2021 3
    • Google
      buy_o_rent

      Go to company page Google

      buy_o_rent
      OP
      Haha yeah that's why I'm debating.
      I like those new apartments (several friends live there) but I don't like LIC much.

      Williamsburg is good but expensive too.

      I've briefly lived in bushwick. I like it but it's a bit too far from the city to me.

      And the high HOA and tax in Manhattan you mentioned is exactly why I'm still not sure if I should buy.

      Ideally I want to keep my monthly payment (interest + principal + HOA + tax) < $4500.
      Nov 7, 2021
    • Netflix
      bravissimo

      Go to company page Netflix

      bravissimo
      Lic=jersey city(Newport area) but less safe and
      Higher taxes
      Nov 7, 2021