subject: The Affordable Alternative With New York Real Estate [print this page] The credit crunch and sub-prime meltdown creates affordable ownership opportunities for the middle-class
Young professionals and blue class workers are fueling what's left from the real estate market in New York City (with the exception of Manhattan). Nationwide (including the boroughs) real estate prices have been declining for most of 2010. This really is primarily brought on by delinquencies in mortgages made in the last Four years to subprime and no income verification borrowers. Increased foreclosures combined with tightening mortgage underwriting standards have drastically increased the inventory of homes currently available on the market.
Additionally, this past summer's mortgage meltdown makes securing a Jumbo mortgage much more difficult. A Jumbo mortgage is one that is bigger than the conforming loan limit of $417,000. Since Apartments for sale in New York City costs are in many cases higher than $417,000, sales have lagged due to buyers having trouble qualifying for Jumbo mortgages. Many of these factors have contributed to "the bubble finally bursting".
There has been however, one sweet spot in the New York City housing market. Affordable living is making a comeback. Smart developers have stopped over building billion dollar houses in middle-class areas and instead begun developing affordable condo apartments through the boroughs. Studio to three bedroom apartments can now be bought from the high 100,000's to the mid 300,000's.
A few of these condos have been gut renovation conversions of apartment buildings yet others happen to be ground-up new construction. Affordable condos would be the hottest section of New York Real Estate at this time. Many developers who were building 3 family houses throughout the city have now decided to convert the complexes into condominiums because of the market conditions. It is more profitable for the developers and much more affordable for the end buyers.
For instance, single bedroom condo costs $237,000 that is actually less expensive than renting an identical apartment when the income tax deductions are taken into consideration. Renting a 1 bedroom with hardwood flooring, granite countertops, stainless appliances, a video intercom system, recessed lighting and online connections pre-wired within the walls can certainly run up to $1200 to $1400 a month. Owning the condo may cost as little as $1060 per month using the tax advantages and only 5% (aprox 12,000) out of pocket.
Owning instead of renting is the initial step towards financial freedom. Renting only provides a landlord a mortgage interest tax deduction and also the tenant a rent increase each year. Plus real estate will appreciate over time so it is an excellent long-term investment. With the recent slowdown in the real estate market combined with lots of people who have recently lost their homes to foreclosure entering the renters market, rents have begun dramatically increasing as the citywide interest in apartments increases.
When you are looking for New York homes for sale, consulting with some good estate agency will be helpful. Buying property in NYC may not be easy but a good estate consultant will certainly make the job easy for you.
Looking for estate consultancy in New York you can simply log on to: http://www.newyorkrealty.in
