Tuesday, November 24, 2015

The Numbers Don't Lie, It is Time to Buy

f you have $8,500, and a 700 or so credit score, it is now cheaper to own a co-op than to to rent an apartment on Long Island.  That’s how high rents have gone.  

In Carle Place Long Island, the Eagle Rock Apartments rent a 1 bedroom for $1750 a month.  That’s a three rooms apartment.    

Now take that $1,750 budget and apply it to a 1 bedroom co-op in Birchwood Courts near the Mineola Railroad stop  just one town over.  Which is an amazing location for commuting to NYC.

The Birchwood Court unit is $180,000.  The monthly maintenance charge is $927.58

You're going to borrow 95% of the $180,000.  (That’s a $171,500 loan.) That monthly payment is $809. (Loan rate: 3.92% on a 30 year mortgage.)

$809 + $927 maintenance = $1,736 monthly payment.  Closing costs are extra but could be financed into the loan.

Now on tax day, you can get back your interest payments and maintenance charge in a write off.  You also build home equity wealth which apartments will never ever offer.  

The numbers don't lie, it’s time to buy.  

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