Several recent reports and articles seem to indicate that Manhattan real estate has become a buyers' market. Given that it takes months to close, and therefore report, deals in the City, it's often the case that by the time a phenomenon is reported it may be close to over. Sales have been slow, and price adjustments necessary, but how close sellers actually are to making the necessary adjustments is anyone's guess, and making an offer is worth a shot.
But judging by past NYC history, the current buyers' market here will not last forever. The coming months can be an excellent time for renters who are committed New Yorkers to consider beginning the generally months-long process of starting to familiarize themselves with the market by looking at properties, seeing relative values, seeing what discounts may be available and when, figuring out what they want, figuring out their own finances. Buying real estate here is a process, a growth process, particularly first properties.
We've prepared the chart below - food for thought - of how much of NYC renters can buy for what they're currently paying their landlord, based on a 30-year 20% down/80% mortgage and typical monthly charges. (Also, in today's market, more seller's will consider lower down-payment offers than in past years - as low as 3.5% is possible. I can help figure out costs in that scenario also.)
The payoff, of course, is huge: (1) pretty much setting your housing costs for the next 30 years, or as long as you like; (2) using your monthly payments to pay off your own mortgage, instead of your landlord's; (3) building substantial equity that can be borrowed against or captured at re-sale; (4) leveraging your investment 4 or five times with normal financing; and (5) taking advantage of one of the only capital gains tax exemptions ($250,000 for individuals; $500,000 for married couples) available.
Please feel free to share this with someone you know who might benefit. Owning a piece of NYC was the greatest financial thing I ever did. I'd be delighted to begin talking this over with you, or them.
Associate Broker, Citi-Habitats
Associate Broker - Platinum Award
387 Park Avenue South 4th Floor New York, NY 10016
Real estate agents affiliated with Citi Habitats are independent contractor sales associates and are not employees of Citi Habitats. Citi Habitats is a licensed real estate broker located at 387 Park Avenue South, NY, NY 10016. All information furnished regarding property for sale or rent or regarding financing is from sources deemed reliable, but Citi Habitats makes no warranty or representation as to the accuracy thereof. All property information is presented subject to errors, omissions, price changes, changed property conditions, and withdrawal of the property from the market, without notice. All dimensions provided are approximate. To obtain exact dimensions, Citi Habitats advises you to hire a qualified architect or engineer. This is not intended to solicit property already listed. Equal Housing Opportunity.