Help - buying in the city...

[InGearX]

Good day all :)

I hope this can give me/others a better understanding of the current market...

What do you think is the future outlook for Manhattan and the surrounding areas?

Is it time to cash out or buy?

Looking forward to an informative, thoughtful and interesting discussion...
Thank you all...

[MikeW]

If you're looking for a place to live, and are going to be here for a few years, buy. Even at current prices, you're still better off buying than renting. If you're buying to flip and cash out, now isn't the time.

[fivealive]

I agree with the poster above. I think flipping is definitely out of the question now. I also think buying a place you can live in for a long time is also a good idea provided you don't lock yourself into a mortgage you can't keep up indefinitely.

Reasons to buy:
1) Interest rates may be creeping up or down on any given week, but pretty much the Fed seems happy to keep it at historic lows (what is it now, 6.31 on a 30 year fixed?).
2) Prices seem stable. Economists keep saying there is a glut of inventory, but I think they're overestimating it. A lot of sellers are in a "take it or leave it" stance. They won't budge the prices. Some see that the sky is falling and that sellers are "divorced from reality." But the truth is, most sellers I've encountered are not particularly motivated. They want to test the market for bites in case a windfall comes their way. Otherwise, they'll rent it out, since rents are at historic highs.
3) Rents are at historic highs.

Reasons not to buy:
1) You think prices will drop.
2) You have a big wad of cash for a down payment, so a rising interest rate won't hurt you as much as most other highly-leveraged buyers.
3) You find a good deal on a rental you like and you feel like sweating this one out for a bit.

Me:
Renting a 1 bedroom from owner in Brooklyn Heights for 1850/month. There are good deals to be had renting in Brooklyn.