New York vs New Jersey

[doug reich]

ljp - This has worked pretty well in NY, but lately most of the rest of the country wouldn't agree that real estate will help you build equity. Diversify!

 

[ljp99]

Never said I wasnt diversified. And I know we happened to do our sale/purchase transactions at the right time. Neither of us bought our first places just to flip them a couple of years later. We also didnt buy more than we could afford - which seems to be part of the problem with some of the foreclosures.

All - Im saying is it can be done - with patience.

 

[Andy Nguyen]

In some market condition - like right now - rent is a better
choice. At least, that's what some recent articles on NYT seem to suggest.
As ljp99 said, I've been throwing money out of window for years by renting. Building equity by owning is the way forward.
That said, the biggest challenge for first time buyers is the down payment. In addition, there is more difficult now to obtain mortgage than ever before thanks to the credit crunch.
People like me probably will have to wait for a couple bonus checks before they can be taken seriously by banks.

ljp99, I hope to live in your neighborhood someday

 

[Andy Nguyen]

Was reading an article on NYT yesterday about lenders, co-op boards giving Wall Street workers a hard time. And I thought it is pretty relevant to the context of this thread.

Those in the financial industry who still want to buy real estate are often unable to persuade lenders and co-op boards to work with them.
The biggest problem is that buyers who work on Wall Street no longer have the guarantee of huge bonuses to bolster their financial status. And even those who continue to get bonuses are finding that banks and co-ops will not let them count all that money as part of their income, because unlike a salary, it can fluctuate wildly.

Buyers who work in finance are having trouble with both co-ops and condominiums. Some co-op boards are rejecting bankers even when they appear to be financially qualified, or they are demanding as a condition of approval that many months of maintenance payments be provided upfront.

http://www.nytimes.com/2008/07/13/realestate/13cover.html