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  1. #81
    Not 'Boxxy'!
    Join Date
    Oct 2004
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    If you have $9,000 a month that is available for mortgage/rent then find a place to buy. I know buying is expensive but I would think $9000 a month would be a place worth about a million or so?
    Depending on the location and how the building is 'structured', you'd likely pay several thousand dollars a month in addition to the mortgage in maintenance fees, common charges, and heavens knows what else.

  2. #82
    Tinami 2012
    Join Date
    May 2001
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    Quote Originally Posted by BigB08822 View Post
    I know buying is expensive but I would think $9000 a month would be a place worth about a million or so?
    In many neighborhoods, a million bucks will get you a one bedroom apartment. Two bedrooms under $1mm are usually in less desirable neighborhoods, low-end buildings, and/or fixers. You can typically, but not always, rent a lot more space for the same cost. (There are pockets of neighborhoods/building types where the own to rent ratio is more favorable.)

    As soxxy said, the taxes and fees in buildings are high. Even in low-end buildings, figure on a minimum of $1,500 - $2,000 per month in real estate taxes, insurance, upkeep, and services. $2,000 - 3,000 per month is more standard for two or three bedrooms in buildings that have more amenities. When you're renting, this is all included in the rent.

    The other issue is that boards are strict, and mortgages above a certain amount require more of a down payment. So if you were buying a place for a million bucks, you will need, at minimum, $200k to put down and probably $300k to get a jumbo loan. Add to that, many boards will want to see $100k-200k liquid savings in the bank. The net effect is that you need $400k-500k, minimum, in cold hard cash before you can buy a $1mm property, in many cases. That's A LOT to save, even if you work for one of the banks or hedge funds.

    Plus, plan to pony up a 1% mansion tax for anything over a million bucks (even if it's a shoebox), a 2% recording tax if you're buying a condo (eventually they'll stick this on co-ops, too), and various other fees that only make sense if your time horizon is very long.

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