Thursday, July 26, 2007

Forest Hills Real Estate Prices

There's a ton of debate on this. The NY Post recently printed a headline that says the boom is a bust in Queens. But here's what Steven Spinola has to say:

“While everyone knows the Manhattan market continues to be strong, the boroughs outside Manhattan are bucking the trend in the rest of the country and seeing solid increases in home prices,” REBNY president Steven Spinola said in the report.

Now it's possible that he put a little of his own spinola into his quote, but the fact is co-ops and condos are up in Queens from this report. Average square foot in the borough is $357.

No one can time the real estate market. If you're thinking of buying, Forest Hills is as good an investment as any. But do the math.

Let's say a nice 1 br in AQUA rents for $1800. Let's say the same 1br sells for $285k + 650 maintenance with a 50% tax break.

285K - down payment = 228k. 228 x 6 - $1367 mortgage. + 650 = $2017. Minus the tax break - say conservatively $400/month.

That's $1617 per month to own an apartment that costs $1800 to rent. I'd say now's a good a time as any to buy - a claim I don't think you could make in many other nice areas of NYC.

The trick is the down payment, I know. I just wish some of the co-ops around here would accept the fact that 57k is an unreasonable amount for a 1br shopper to save. 28k would be so much easier to reach. It took me much longer than I care to admit and the whole policy keeps younger people from moving in.