Author Topic: To Sell Apt Post-Election?  (Read 3029 times)

norabird

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To Sell Apt Post-Election?
« on: November 09, 2016, 05:12:38 AM »
Hi all,

My family owns an apartment in Brooklyn that was bought just over two years ago. Value has gone up probably by 300k (purchased at 440). It's a small three bedroom in a, I suppose, gentrifying neighborhood by the park and subway. I live there and pay the mortgage and its 'mine' by common familial understanding, but I think of it as a family asset.

There hasn't been much of a long term plan besides holding it for the foreseeable future. Now that the election makes the future way more uncertain, I'm wondering, should we think about selling?

I know the stock market will tank so maybe having a diverser asset mix and keeping the real estate makes the most sense, I'm just worried that this will turn out the be a dictatorship. I guess property values are still really high in places like Beijing where the government is pretty controlling. So does that mean holding property makes sense?

I think I am just wary of being tied down to a country that potentially is going to hell in a hand basket, but I can't tell financially what the better bet is. Just wondering what others perspective is.

Malum Prohibitum

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Re: To Sell Apt Post-Election?
« Reply #1 on: November 09, 2016, 07:48:09 AM »
Is this a serious question?  A dictatorship?

I think I would look to factors other than who won the presidential election to determine whether you should sell this property.  If you ever had a plan, I doubt this election will disrupt it.  Stick with your long term plan, whatever it was.  You mentioned just holding it as an asset.  Odds are, property values in Brooklyn, which as no more land to develop, will continue to rise over the coming decades (maybe with short term dips here and there, such as around 2009, having nothing to do with dictatorships).

I think selling an apartment just because of the outcome of a presidential election would be imprudent.


norabird

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Re: To Sell Apt Post-Election?
« Reply #2 on: November 09, 2016, 07:58:18 AM »
It's serious! I am not about to try and sell immediately. But I'm less comfortable now with the normal assumptions about property that I previously held.


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Malum Prohibitum

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Re: To Sell Apt Post-Election?
« Reply #3 on: November 09, 2016, 08:28:56 AM »
Well, I think holding property almost always makes sense, Norabird, and I was not relying on Hillary Clinton being in the White House as support for that proposition.  Do what you think is best, but I do not foresee the occupant of the White House being a New York real estate developer as something that is going to hurt the long term property value of your property in New York.

clarkfan1979

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Re: To Sell Apt Post-Election?
« Reply #4 on: November 12, 2016, 10:06:04 PM »
The president is not going to affect your local property taxes. Your elected county officials would have much more influence.

lhamo

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Re: To Sell Apt Post-Election?
« Reply #5 on: November 12, 2016, 10:41:05 PM »
An affordable 3-br apartment in NYC is a rare commodity.   In some ways, I wish we still had ours.  I sold for practical reasons (it was a co-op so we couldn't sublet, tried to get an exception but the board wouldn't budge) that made sense at the time, and parlayed our profits into the lottery ticket in the sky, so it worked out well.  But it was a lovely apartment and I wouldn't  mind returning to NY once the kids launch. 

Anyway, back to your case.  I would not sell due to concerns about politics or the economy in the immediate future.  Wait and see what happens with your personal situation.  You may REALLY be glad you hung on to those extra bedrooms, either to put kids in or to put roommates in (another way to diversify economically).

norabird

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Re: To Sell Apt Post-Election?
« Reply #6 on: November 15, 2016, 02:22:23 PM »
Thanks Lhamo! My parents also see no need to sell. Assuming NYC isn't incinerated in a nuclear attack I will hang onto it! And maybe I can try to be less concerned about dire outcomes at least when it comes to tangibles like property.

Metric Mouse

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Re: To Sell Apt Post-Election?
« Reply #7 on: November 15, 2016, 02:28:27 PM »

I know the stock market will tank so maybe having a diverser asset mix and keeping the real estate makes the most sense, I'm just worried that this will turn out the be a dictatorship. I guess property values are still really high in places like Beijing where the government is pretty controlling. So does that mean holding property makes sense?

Since you know the  market is going to be lower in the future, if you don't sell the apt. you should at least sell all of your investments to capitalize upon that knowledge, and buy back in at a lower cost basis.  If the market tanks Real Estate may be dragged down as well; but perhaps not, so holding is not as detrimental as holding onto any equity investments that you have now that will be worth less in the future.

Cwadda

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Re: To Sell Apt Post-Election?
« Reply #8 on: November 15, 2016, 02:58:20 PM »
I'm not really understanding where you're drawing conclusions about the stock market, etc. If anything the market has gone up 2% since Trump was elected. Anyway, my advice would be that if you do end up selling it, explore FSBO. You will end up saving $40k or more.

former player

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Re: To Sell Apt Post-Election?
« Reply #9 on: November 16, 2016, 02:14:10 AM »
Unless you have legal citizenship of another country or permanent residency rights in another country, your future is tied to the USA regardless of whether you own property there or not.  And generally speaking owning property you can live in, in an economically thriving area, is more comfortable than not owning that property.

(Brexit means I will lose my European citizenship and right of permanent residence in 27 other countries.  I am sore about this.)

pbkmaine

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Re: To Sell Apt Post-Election?
« Reply #10 on: November 16, 2016, 03:57:09 AM »

I know the stock market will tank so maybe having a diverser asset mix and keeping the real estate makes the most sense, I'm just worried that this will turn out the be a dictatorship. I guess property values are still really high in places like Beijing where the government is pretty controlling. So does that mean holding property makes sense?

Since you know the  market is going to be lower in the future, if you don't sell the apt. you should at least sell all of your investments to capitalize upon that knowledge, and buy back in at a lower cost basis.  If the market tanks Real Estate may be dragged down as well; but perhaps not, so holding is not as detrimental as holding onto any equity investments that you have now that will be worth less in the future.

You need to put that /s in for sarcasm, Metric Mouse.

KBecks

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Re: To Sell Apt Post-Election?
« Reply #11 on: November 16, 2016, 04:14:22 AM »
OK, for now, this is your home and you need to live somewhere so let's be practical.

If it is your intent to leave New York for a place that feels safer to you, you will need a plan to select a new place and set up your life there.

Personally I think that you will be OK in 4 years.  But... we never know what the future holds.  Any one of us could be gone tomorrow. 

So while you are figuring out your life plan, enjoy the apartment.  Maybe you will like it enough to stay and feel comfortable in the city, but maybe you will use it to launch a move to a remote Red state, LOL.   Just kidding.  You decide what is best for you but try not to freak out about life and make poor decisions on emotion rather than logic. 

Metric Mouse

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Re: To Sell Apt Post-Election?
« Reply #12 on: November 16, 2016, 09:07:56 PM »

I know the stock market will tank so maybe having a diverser asset mix and keeping the real estate makes the most sense, I'm just worried that this will turn out the be a dictatorship. I guess property values are still really high in places like Beijing where the government is pretty controlling. So does that mean holding property makes sense?

Since you know the  market is going to be lower in the future, if you don't sell the apt. you should at least sell all of your investments to capitalize upon that knowledge, and buy back in at a lower cost basis.  If the market tanks Real Estate may be dragged down as well; but perhaps not, so holding is not as detrimental as holding onto any equity investments that you have now that will be worth less in the future.

You need to put that /s in for sarcasm, Metric Mouse.

My advice is sound, based upon the ops original statements.

Dicey

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Re: To Sell Apt Post-Election?
« Reply #13 on: November 20, 2016, 02:48:18 PM »
Hmmm, could you sell it to Serpentstooth? I miss her and hope she's well.

norabird

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Re: To Sell Apt Post-Election?
« Reply #14 on: November 21, 2016, 07:42:52 AM »
I hope she's well too! But hopefully her next buy will be somewhere in a cute little town :)