The credit crunch and subprime Crisis creates affordable ownership opportunities for the middle class professionals and class Workers are fueling what is left of the housing market in New York City with the exception of Manhattan. Nationwide like the boroughs property prices have been declining for many of 2007. This is brought on by delinquencies in mortgages created to no income and subprime verification borrowers over the past 4 years. Foreclosures combined with mortgage underwriting criteria have increased the stock of homes on the market. Additionally, this summer’s Mortgage crisis has made securing a Jumbo mortgage more challenging. There is A Jumbo mortgage one which is larger than the conforming loan limit of $ 417,000. Sales have lagged because of buyers because New York City real estate costs are in many cases higher than $ 417,000. All these factors have contributed to the bubble eventually bursting.
There was however sweet Spot from the New York City housing market. Living is currently making a comeback. Wise programmers begun developing condo real estate Is now on instagram and rather has stopped over construction million dollar houses. Studio to 3 bedroom real estate can now be found in the high 100,000’s to the mid 300,000’s. Some of these condos have been gut Renovation conversions of apartment buildings like Zinfandel Condominium in others and Crown Heights have been ground up construction. Condos would be the area of New York real estate. Many developers who were building 3 family houses have decided to convert the complexes to condominiums due to the market conditions. It is affordable for the end buyers and more profitable for the programmers.
As an instance, a condo Zinfandel Condominium is priced at $237,000 that is less expensive than renting an apartment that was comparable once the income tax deductions are taken into consideration. Renting a 1 bedroom with hardwood floors, granite countertops, stainless steel appliances, a video intercom system, recessed lighting and web connections prewired from the walls can easily run upwards of $1200 to $1400 a month in Crown Heights if there are any available. Owning the condominium can cost as little as $1060 per month with the tax benefits and just 5\% aprox 12,000 from pocket. Owning rather than renting is the First step towards financial independence. Renting gives a landlord the tenant a rent increase as well as a mortgage interest tax deduction annually. So it is a long term investment plus real estate will appreciate over time. With the slowdown in the real estate market combined with men and women who have lost their homes entering the market, rents have begun increasing as the requirement for real estate increases.