Need advice on moving out, and getting my first apt

[sean]

So. I think I'm ready to change my life forever and flee the ol' parents nest. I'm going to be 23 next month. I've lived in Marine Park, Brooklyn all my life, and like most of you I love Brooklyn to death and I have no reason to leave.

Vital stats: 23, male, $40k/year (about $2500/month after taxes).

I'm financially concious and originally I was looking into buying a condo and make my first investment but that went out the window after seeing how much money it was gonna take. I talked to many people for advice and basically got the same response each time "you're young, just rent and live up your life while you still can!" Apparently some people think "living up your life" is to throw money out the window and into the pocket of some shmendrick landlord. So after a few weeks of figuring out how to approach this I decided renting wasn't all that bad. Everyone else does it, right? I'm not alone. Maybe I don't want the responsibility of owning a property yet.

Alright, enough with the intro, this post is getting long. I just wanted to say that I'm very interested in the Brooklyn Heights area. It's a change of scenery from the family area that I grew up in. I was wondering if anyone can offer any advice on budgets, how to go apartment hunting, how not to get ripped off, etc...

I have no debt and a decent income. I do have a car though. Cell phone, gym, gas, insurance, adds up. I have $1900/month in cash left over. I think I can find a studio in Brooklyn Heights for around $1300, leaves me around $600 for pocket cash and utilities. You think I can deal with that for a while? Until I make some moves and get some more cash flow? I know that if I stick to where I'm from (Sheepshead Bay area) I could find a studio for $800/mo, but I really wanted to try something different and see a different part of Brooklyn. Its kind of important to me.

[Schadenfrau]

Are you sure about your income statistics? 40K a year doesn't equal $2,500 a week after taxes.

At your age, I'd strongly suggest saving money by having a roommate. Brooklyn Heights is quite expensive, and you could find a share for less than $800 a month in a much younger and more fun part of Brooklyn than Sheepshead Bay.

[sean]

Sorry, I meant $2500/month. Bad typo.

What part of Brooklyn do you suggest? I'm really not interested in having a roommate...

[Schadenfrau]

Honestly, I think you'd have trouble finding an $800 studio in most areas of Brooklyn.

Checking out the prices on Craigslist should give you an idea of the rental market. $1,300 sounds like a very high rent for your income.

[Ninjahedge]

For Hoboken, at 34K/yr my first year and $800 apt (+$150 parking) I pretty much broke even.

I also shopped at Shop Rite in the suburbs, did laundry and had sunday dinner at my folks, and went out to drink once a week.

BH is a little more expensive than Hoboken, and both are almost double what they were since I was scraping by. Yuo may want to hold off a year or two and save up enough for a decent down payment on a co-op or something. The real estate market is slowing down, and you may hit a sweet spot when you have the cash.

Don't listen to your friends when they tell you "YEAH NOW NOW NOW!!!!". Just make a game plan ahead of time and stick to it.

25 and living with the parents is nothing.

30 and you will get funny looks. ;)

But, whatever you decide, Good Luck! It is not easy to rent and save in Manhattan and its posh-er suburbs/areas!

[sean]

It's going to take me much more than a year or two to save a down payment on a condo...

[Schadenfrau]

I wouldn't place so much emphasis on buying a condo right now. It sounds like you haven't even seen enough of the city to really know which neighborhood you'd like to buy in.

Seriously, roommates are not that bad, and in your early 20s, they're a great way to meet new people. Do you have any particular reason you don't want one? Past experience, or just horror stories?

[sean]

I guess you can say I'm a loner? I like to be by myself. Well, at least, live by myself. I need my own space. It's just a choice. I'd rather spend more money and live by myself. Screw meeting people, I know too many people as it is...

[Ninjahedge]

It's going to take me much more than a year or two to save a down payment on a condo...

Depends on how much he saves and what you are looking for.

I could have kicked myself in teh butt for not buying something cheap in Hoboken before the rush. I could have bought one further away fomr the PATH, and dingier than my small 650SF apartment for under $100G a good 6 years ago. 20% DP is 20K, plus closing and all that would not have been much more than about 5G.

The same place is selling now for about $180K.

I am not saying that you will see the same increase, but saving a good 15K a year by living with mom and dad may help get a 10% loan with points, which may end up making you more money than renting so long as you are good with the payments.....

[sean]

Depends on how much he saves and what you are looking for.

I could have kicked myself in teh butt for not buying something cheap in Hoboken before the rush. I could have bought one further away fomr the PATH, and dingier than my small 650SF apartment for under $100G a good 6 years ago. 20% DP is 20K, plus closing and all that would not have been much more than about 5G.

The same place is selling now for about $180K.

I am not saying that you will see the same increase, but saving a good 15K a year by living with mom and dad may help get a 10% loan with points, which may end up making you more money than renting so long as you are good with the payments.....

But... I'm not looking in areas where I can find something for $100k, or $150k, I'm looking in areas for $300-350k. I appreciate the advice but, as many other people have told me, I don't believe I'm ready to invest in my first NYC property yet. I feel pretty good that I don't have to stress about it either. I think I'd like the experience of renting.

[Ninjahedge]

But... I'm not looking in areas where I can find something for $100k, or $150k, I'm looking in areas for $300-350k. I appreciate the advice but, as many other people have told me, I don't believe I'm ready to invest in my first NYC property yet. I feel pretty good that I don't have to stress about it either. I think I'd like the experience of renting.

Your choice man.

My mistake.