Hey all,
First time caller long time listener.
DW and I recently noticed we have too much cash, and were recently gifted a windfall that pushed us to take a look at the RE market here in Brooklyn for the first time in a few years. To our surprise, we saw some stuff that seemed pretty affordable (for nyc)for us. Wanted to run the numbers past some well informed internet strangers friends and see if we're missing anything and get some advice.
We currently pay 2400/month to rent an ~1100 sq ft 3 Bedroom apartment that is rent-stabilized(rent increases no more than 2% per year typically). So, a lot of leverage for us in terms of walking away from anything that isn't perfect. We know we're not getting anything close to that if we buy something where we want to be, and we're comfortable with that.
As I read it, we can comfortably afford something in the 650k purchase price range. We'd look for a condo, 2BR. Won't even consider co-ops unless someone here can change my mind. It seems possible with where the market is now. We have the down payment. We want to be here for at least 5 years, probably more. We'd like to own a place, but it's not buried too deep in our psyche or insanely important to us the way it is to some. This is really about making a sound financial decision/investment and/or getting something we don't currently have(outdoor space common or otherwise, equity). We have no debt, we make between 130-150k a year depending on my job, which is variable. I am freelance and self-employed, so my contribution limits are high to an i401k, fwiw. This purchase would impact the amount we are able to contribute to retirement accounts in the very short term as we are fastidious about our e-fund due to the nature of my work.
NYT calculator says yes. Michael Bluejay calculator is more of a grey area depending on when we sell the purchase.
What are we missing? Should we kick the tires on this more seriously? Fools to even consider? Need more numbers?
I'll take my answer off the air and appreciate the help. Thanks.