The Suddenly Affordable Alternative
The credit crunch and subprime meltdown creates affordable ownership opportunities for the middle class
Young professionals and blue class workers are fueling what's left of the accurate estate market in recent York City (with the exception of Manhattan) . Nationwide (including the boroughs) genuine estate prices have been declining for most of 2007. This is primarily caused by delinquencies in mortgages made over the past 4 years to subprime and no income verification borrowers. Increased foreclosures combined with tightening mortgage underwriting standards have drastically increased the inventory of homes currently on the market.
In addition, this past summer's mortgage meltdown has made securing a Jumbo mortgage mighty more difficult. A Jumbo mortgage is one that is larger than the conforming loan limit of $417,000. Since modern York City true estate prices are in many cases higher than $417,000, sales have lagged due to buyers having peril qualifying for Jumbo mortgages. All of these factors have contributed to "the bubble finally bursting".
There has been however, one sweet position in the current York City accurate estate market. Affordable living is making a comeback. intelligent developers have stopped over building million dollar houses in middle class areas and instead begun developing affordable condo apartments throughout the boroughs. Studio to 3 bedroom apartments can now be bought from the high 100,000's to the mid 300,000's.
Some of these condos have been gut renovation conversions of apartment buildings like Zinfandel Condominium in Crown Heights and others have been ground up original construction like 580-586 Van Siclen Avenue Condominium in East current York. Affordable condos are the hottest situation of fresh York steady estate honest now. Many developers who were building 3 family houses throughout the city have now decided to convert the complexes into condominiums because of the new market condtions. It is more marvelous for the developers and more affordable for the kill buyers.
For example, a 1 bedroom condo at Zinfandel Condominium is priced at $237,000 which is actually cheaper than renting a similar apartment when the income tax deductions are taken into narrative. Renting a 1 bedroom with hardwood floors, granite countertops, stainless steel appliances, a video intercom system, recessed lighting and internet connections prewired in the walls can easily rush upwards of $1200 to $1400 a month in Crown Heights (if there are any available) . Owning the condo can cost as tiny as $1060 per month with the tax advantages and only 5% (aprox 12,000) out of pocket.
Owning instead of renting is the first step towards financial freedom. Renting only gives a landlord a mortgage interest tax deduction and the tenant a rent increase each year. Plus staunch estate will like over time so it is a large long term investment. With the current slowdown in the trusty estate market combined with many people who have recently lost their homes to foreclosure entering the renters market, rents have begun dramatically increasing as the citywide question for apartments increases.