Many people that currently own real estate are glad that they purchased their homes before real estate prices began to appreciate. Some have thoughts about cashing out their equity and moving to a ch
September 23, 2005 (Press Release) --
Many people that currently own real estate are glad that they purchased their homes before real estate prices began to appreciate. Some have thoughts about cashing out their equity and moving to a cheaper city. Some think that NYC is going through a housing bubble, and they want to cash out before the market crashes. For the most part, people in New York are staying put. Supply is very low as a result.
Cynthia McCullough currently lives in a one bedroom apartment, but she and her husband are planning their first child. They want to upgrade to a two bedroom, but even if they cash out all their gains from their current one bedroom apartment, they still can’t afford the mortgage payments for a two bedroom. Their current apartment is worth about $600,000, of which they owe $325,000 to a lender. A two bedroom in the same neighborhood would cost well over 1.25 million. They can afford the down payment, but a mortgage of close to one million is more than they can afford on their dual income. That is the irony that most home owners in NYC are facing. As their homes appreciate, as do others, so their gain will probably never be realized. Cynthia and her husband are considering moving to Westchester or Long Island in two years. She says it will be a tough transition since she has lived in Manhattan for the last 10 years.
With prices soaring to new highs each month, many people are wondering when this is all going to end. Many of the traditional buyers are turning elsewhere to purchase their first homes. They are look in places like Rockland County, and as far away as Philadelphia. Real estate gains don’t appear to help home owners much, but they do help out investors who are flipping properties at lightning speed. With mortgage interest rates staying put at historic lows, real estate appreciation will likely continue till early next year. The irony of the situation is that Cynthia McCullough is actually hoping for a real estate bust, even though she owns her coop apartment. “If prices come down enough, maybe I can upgrade to a 2 bedroom without a 1 million dollar mortgage, even if that means I lose equity in my current home.”
Read more NYC housing articles at:
http://www.nycapartmentblog.com
NYC Apartment Blog discusses current news on the NYC real estate market, renting and buying issues.
Cynthia McCullough currently lives in a one bedroom apartment, but she and her husband are planning their first child. They want to upgrade to a two bedroom, but even if they cash out all their gains from their current one bedroom apartment, they still can’t afford the mortgage payments for a two bedroom. Their current apartment is worth about $600,000, of which they owe $325,000 to a lender. A two bedroom in the same neighborhood would cost well over 1.25 million. They can afford the down payment, but a mortgage of close to one million is more than they can afford on their dual income. That is the irony that most home owners in NYC are facing. As their homes appreciate, as do others, so their gain will probably never be realized. Cynthia and her husband are considering moving to Westchester or Long Island in two years. She says it will be a tough transition since she has lived in Manhattan for the last 10 years.
With prices soaring to new highs each month, many people are wondering when this is all going to end. Many of the traditional buyers are turning elsewhere to purchase their first homes. They are look in places like Rockland County, and as far away as Philadelphia. Real estate gains don’t appear to help home owners much, but they do help out investors who are flipping properties at lightning speed. With mortgage interest rates staying put at historic lows, real estate appreciation will likely continue till early next year. The irony of the situation is that Cynthia McCullough is actually hoping for a real estate bust, even though she owns her coop apartment. “If prices come down enough, maybe I can upgrade to a 2 bedroom without a 1 million dollar mortgage, even if that means I lose equity in my current home.”
Read more NYC housing articles at:
http://www.nycapartmentblog.com
NYC Apartment Blog discusses current news on the NYC real estate market, renting and buying issues.
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