I'm looking at 1br rental apartments, and they seem expensive, have ugly finishes, and weird layouts. Meanwhile I can find apartments for sale for 500k that have excellent layouts, new appliances, and great finishes. Is there a reason not to buy in the city? Am I missing something in terms of affordability?
Are they coops? Far from subway?
Yes, they are coops. Upper west/east side, which should be close to the subway?
500000 for 1 BR? I wanna move from SF now.
Half the square footage from sf
Not in a super hot area though. Probably closer to Harlem or Fincial district.
It is almost literally impossible to get a one bedroom for half a mil in any area of manhattan.
Almost impossible literally means possible.
Just like how it's almost literally impossible for you to be our next president. Oh wait...
I compared rent vs buy in Manhattan and renting was definitely cheaper. If you believe otherwise, go for it. Be sure you’re considering all costs to own (insurance, maintenance, HOA dues, lost capital gains, etc) and comparing same location/size/quality. I believe you can find better deals on rental in the current market.
1br is usually around 700-800k. 500k for 1br doesn't sound real. They might be asking for all cash deals (meaning the buildings finance situation might be bad, and banks will not approve your mortgage for buildings with poor finances), or there might be an income cap for the buyers. Coops are great in my opinion, you just need to educate yourself on the differences between coops and condos. Condos grant you full ownership to your unit. They usually come with greater freedom in terms of leasing/renting it out yourself, renovation, etc, but also usually 20% more expensive and not worth it imo, unless you're looking for an investment property. With condos, you'll have to pay the usual monthly costs that come with home ownership, like insurance and HOA. Buying a unit at a coop means you buy shares of the building. Coops come with own sets of rules that limit your ability to rent out, they'll look at your bank and income, will interview you to see if you're not someone who will negatively affect the building and its residents. Coops are generally more for people who will use the unit as the main residency and plan to stay there for at the very least 3-5 years, as their rules are in place mostly to weed out investors and flippers. Monthly fees really depend on the building and their expenses and incomes. Both coops and condos will have monthly fees to operate the building. Some buildings are financially sound and have steady income which will help offset monthly fees. If the building comes with 24hr doormen or other luxury amenities, chances are their monthly fees are higher. Rentals really depend on the landlord, and the building. You may get unlucky and have terrible management/landlord, or you might luck out and benefit from rent freeze/stabilization with an awesome landlord. If you're savvy and you do the due diligence to find the right place, you'll save money by purchasing.
I'm guessing the $500k apartments are HDFC affordable housing that have income restrictions. Expect to pay about $1,000/sq ft.
You haz down payment money?
Yes, I have $250k cash.