Luxury Guide To Buying A Penthouse Apartment In Nyc

I visited that house many months later I could tell the new owners had put at least $30,000 into it. Sometimes I wish I had kept the house with its pool and fruit trees. But with an income of only $400 / month minus maintenance vs the $40k or so I made in less than 2 years by selling, and employer picking up the $30k or so in closing costs seemed to make Off The Plan Apartments St Leonards it worth it. I just wish I had done a dollar cost averaging of the proceeds when I got it instead of leaving it in cash. For example, if you make $85,000 per year, 30% of your monthly income is $2,125. If you pay $390 per month to student loans, $450 to your car payment, and $100 to credit card debt, you’ve got $1,185 to work with for a mortgage payment.

The loan representative told me the rate differs at 4.25% for an investment property. Now I’m shifting towards a balance of growth and income because valuations are stretched in expensive coastal cities. Plus, I no longer want to spend so much time managing rental properties now that I have kids. After spending $248,000 a year living in a sweet home in Hawaii, I’d still have $944,307 left over in cash flow if I followed my real estate investing rule of Renting Luxury, Buying Utility.

I live in the chicago suburbs and have a 4 unit rental property in an adjacent suburb. Property taxes on my home (purchased in 2011 for 905k and recently re-appraised this year for same price of 905k) have increased from 25k/yr in 2011 to 31k/year in 2016. Our 4 unit rental has hung in at 8k/year property tax rate consistently. Illinois is a disaster, and that is the reason that chicago is the only major city in the US that has had a net effux of residents over the past 4 years.

That being said, sometimes it still works out better to buy rather than rent. For instance, in LA, we currently pay $1,800 per month in rent, which is very low, but I don’t like spending much of my income on rent. We put in an offer on a $600,000 property that has a primary 3/2 house, as well as a separate 2/1 house on the back of the lot . Given the tax benefits and the rental savings, this house will actually save us about $10,000 per year, which is about the most I could expect to earn from investing the down payment money instead. That’s before any rental from the 2/1 house (at least $1,500 per month), and before any appreciation in the property. Love your posts, but this time, your midwest numbers are way off.

In the MidWest, there are actually $100,000 properties that can earn you $1,000 a month in rent. The value you get in the heartland is partly why I’m so bullish. Let me share with you why it’s important to follow the real estate investment rule of Buy Utility, Rent Luxury . If you want to maximize your lifestyle and your net worth it’s more important than ever to pay attention to this rule. For instance, what if you own a desirable downtown apartment that would leave you with $100,000 if you sold it, or bring in $5,000 a year after carrying costs?

If you’re looking for a long-term investment then capital appreciation is your friend. I ran the numbers and I get a total actual cost of ownership of about $148K per year. But in the process you gain about $38K in equity due to loan paydown in year 1. So the net impact on your net worth would be -$110K to buy, assuming no appreciation.

You can start your research by checking out The Real Deal, an award-winning publication read by most of Manhattan that focuses on luxury apartment and townhouse listings. While most New Yorkers understand what a penthouse entails as per popular culture, out-of-towners may scratch their heads at the idea. Like the cherry atop an ice cream sundae, these luxury apartments occupy the top floor of high-rise buildings. Some new condo buildings benefit from a 421-a tax abatement, and for the buyer, this means a lower monthly property tax bill. It’s usually easy to find out whether this kind of perk is being offered.

Property ownership is protected by a land registry, and the U.S. dollar is the official currency. So exchange rates aren’t a factor in completing the purchase, or your property’s future value. City apartment buildings with luxury apartments are typically operated by a whole team of supportive workers to assist with the cleaning and other valuable facilities.

Of course, folks are attracted to opportunities, and they find it in these cities. If John has 10 rental properties worth $40K each, and each earns him $400 per month, in class B areas. Fully occupied, $4000 monthly income on a $400K investment. I netted $185,000 on the house after paying the mortage off, which is much more than I put down 2 years earlier to buy it as a short sale. I didn’t really invest it since I had bought my current house at the time and I thought I might put the money into that mortgage.

It is not difficult to find houses worth $3000/mo in rent, asking between $250, ,000. Have you seen duplexes or apartment complexes in the bay that you would buy for cash flow? You have more potential income opportunities with it buying multi family properties I believe rather than Single family homes.

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