Renting vs Buying properties in NYC

How to evaluate  Property Value: 

Pricing a property for sale is not easy. I use my experience to assist owners of condominiums, cooperative apartment units known as co-ops and 1 to 4 families’ houses.  Owners most of the time price their properties based on our support in the market analysis; comparing the most similar conditions and features of recently sold in addition to similar properties currently for sale.

Pricing:

The first step is to collect information about the property by going to Acris the government department where property titles are  recording.  There you fin property details including its square footage, the number of bedrooms and bathrooms, size of the land and style of home. a.

The second Step:It is to find at least three properties with the same characteristics that have been sold in the area.  Homes should be in the same neighborhood and ideally sold no more than a year ago. After getting the three different prices of the properties already sold, I find the average.

 Third Step: Search for properties already sold in the area after getting all information, I show it to the seller to help him to price his property. From the seller viewpoint it is a good idea to do a make up to the appearance of the unit for sale. Giving a good impression on size and neatness helps the price to be higher than similar properties in the same market.  However, it is important no to fall in an exaggerations because buyers’ agents also do the same market research.

My own rent situation inspired me to investigate and analyze about the money I pay for rent and the mortgage I would pay in case of buying a house.

Since I start working in real estate (2001), I noticed that it is much better to buy than to rent a property because the rent that I pay goes to landlord while the mortgage payments could some day came back to my pocket. For example; if I buy a house now that the market price and interest rates are low, my monthly payment will be equal or less than the average price rent in NYC, where currently 2 bedrooms Apt average price is $1700 to $2500 depending on the area.

Buying one family house for the price of $ 350,000, your monthly payment, could be $1900. Let’s say the market goes up and your house value increased to the price of $40000 the equity is 50,000. That means that in one year you got 50,000 back to your pocket from the mortgage you had pay plus the accumulated payments that go to the principal.

Keep in mind, that this  statement of buying a residential property applies only when market value is low, interest rate is low and rental value is high.