Starter Houses on Long Island? (New York, York: bill, wealthy, homeowner)

[TomMoser]

I don't know what the deal is CT, as zoning issues are all local. In fact, I may have incorrectly made a sweeping generalization about Long Island since it is each indivual town that regulates these things.

Also, you should note the difference between "legal 2 family" and houses that have accessory apartments. Here in Huntington Township, you can get approved for an accessory apartment (there is a long list of rules), but the owner must occupy the house. In a "legal 2" there is no owner occupant recquirement. Obviously, this is much harder to get.

I know what you are talking about with those "walk out basements". It seems to me that the difficulty with putting an apartment in these is that there is no place for a window along the one wall (as it is underground). So you could end up with a bedroom that has no window, and therefor, no way to escape in the event of a fire.

[4StanleyCups]

Hi Tom, my bad... I hastily wrote "legal 2" instead of "legal apartment" which is what I really meant.

In any case, I strongly suspect that the person selling the Kings Park home has nothing more than a "legal single family" and as I commented, I have serious doubts about that outbuilding having a proper C of O.

Actually I'm still chuckling over the notion of someone having a "compound" on such a sprawling .17 acre lot ...... Hyannisport it ain't! LOL

[clamboy]

Originally Posted by bnocher

The problem is that people are asking way too much. I'm seeing houses sitting on the market for quite sometime. And these people won't budge on their ridiculous price. I'm seeing small capes that are falling apart 3 bedroom with 1 bath 60 by 60 lot in Stony Brook going for $500,000. And whoever buys it needs to put in another $100,000 into it. It's hard to find a good starter home in a nice area. And area is the key. Because if it is a starter home you want to be able to sell it.

I got a great one for sale

C

[nbres]

It is a buyers market. There are literally thousands of homes all over Long Island going unsold. If you got the cash on hand and don't have to sell a home you can get some great deals. My advice is don't settle - hold out until you get what you want. There is a window of opportunity here for first time buyers that was last open in the early to mid-1990s. Take advantage of it.

[LongIslandBubble]

Originally Posted by nbres

It is a buyers market. There are literally thousands of homes all over Long Island going unsold. If you got the cash on hand and don't have to sell a home you can get some great deals. My advice is don't settle - hold out until you get what you want. There is a window of opportunity here for first time buyers that was last open in the early to mid-1990s. Take advantage of it.

House prices are falling, but they have a long way to go before falling in line with the fundamentals. If you buy now, you will be catching a falling knife. All the prices you see out there are fantasy prices; sellers are in denial and are just starting to realize this because their houses are sitting; some for over a year!

The prices on Long Island and all other bubble areas have been driven up by ARM's with teaser rates which are expiring; people are living in houses they cannot afford, they over paid. Now that lending standards are tightening up and the easy credit will no longer be available, no one will be able to pay those high prices; that's why prices HAVE TO fall.

The inventories on Long Island have almost tripled since 1999. When the rest of these mortgages reset, the inventories will go much higher. Consumer spending is just starting to be effected. This thing is going to be worse than the S & L crisis; in fact, this will be the worst recession this generation has and will ever see.

Be prepared; the storm is coming!

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[LongIslandBubble]

Originally Posted by forum383

Long Island has become very expensive and there aren't many starter homes around. I have a situation where I have a wonderful colonial in Kings Park, Long Island (near Ft. Salonga and Smithtown) that I need to sell fast! It is a 2/3 bedroom plus has full separate basement apartment (rental income) to help a new homeowner pay mortgage. There is also a separate expanded garage on the property that is FINISHED 4 rooms, with full bath, kitchen, etc. Great for office, gym, storage or ??? Inground pool and private deck. This is a mini compound that would be great for a large family or a great starter because of the potential income. The market is soft so I am quite flexible. Realtor listed based on value at $459,000. Because I need to sell quickly, they reduced $10,000. I am still willing to negotiate a serious deal for even less than $449,000.... how about first $435,000 gets this beautiful house!! NEXT TWO WEEKS ONLY. If it doesn't sell I will rent for the year and wait till market improves and get my $460,000. The deal is great if you are serious and want a great value!! 516-991-7777

If you really want to sell this house within the next ten or so years, I highly suggest you go to open houses all over your neighborhood and see what the other sellers are offering and then lower your price well below what they are asking; you may just get lucky. Whoever buys the house will still be grossly overpaying and next year when prices are much lower, you will be glad you made that move.

Don't think that you are losing money (prices out there are just the sellers fantasy) and please, don't think the market is going to get better; in fact it will be getting worse! If you are smart, you will lower your price well below your competition. There aren't enough buyers out there to put a dent in the inventory and the inventory will continue to rise as the buyers go extinct due to tighter lending standards.

Foolish buyers + easy credit = overpriced property

overpriced property - easy credit = price crash

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[nbres]

Unfortunately, I think you are right. Home prices on Long Island are still way overpriced. What I'm wondering is if others out there think suburbia itself is in a death spiral? I mean is this just the tip of the iceberg? are there far more seurious undercurrents that we have yet to recognize that will reshape how we live in the future.

Suburbia has been a new and transitory experience in American history. We did not always live like this because it did not make sense to. Then after World War II, with lots of federal help, suburbia boomed - is it now going bust?

Any Thoughts.

[LongIslandBubble]

Originally Posted by MichaelMarinelli

mortgages are just as/if not more outrageous. How do they do it?

Easy credit. Mortgages that start out with a teaser rate of 1%, 2%, 3% and then after 2 years (2/28 ARM), or 3 years (3/27 ARM) they start going up.

When you can get a mortgage at rates that low, you can get HUGE mortgages that you otherwise wouldn't be able to afford with a traditional mortgage. Problem is, after the loan resets, the borrowers payments can double and the borrower defaults; this is why the foreclosure rate is so high right now. People who have taken out 3/27's in 2005 and 2/28's in 2006 are losing their houses in record numbers due to mortgage resets; by october, we will reach the peak of these resets which will continue for another 2 years.

Since they have been lending to anyone who can sign the papers, there WAS a huge demand for houses which drove up the prices far beyond what the fundamentals can possibly support; but that easy credit is now being removed from the market.

With all the foreclosures and skyrocketing inventories, prices will fall significantly so many of those who used fixed rate traditional mortgages will see their property's value fall below what they paid; many will walk away.

With all the lenders going bankrupt, the remaining lenders are tightening up their standards; you cannot get 2/28's or 3/27's anymore, they also want down payments and I believe when all is said and done, they will want as much as 20% down. That is why anyone selling should cut their price and get out before it's too late; there isn't much time left!

[LongIslandBubble]

Originally Posted by nbres

Unfortunately, I think you are right. Home prices on Long Island are still way overpriced. What I'm wondering is if others out there think suburbia itself is in a death spiral? I mean is this just the tip of the iceberg? are there far more seurious undercurrents that we have yet to recognize that will reshape how we live in the future.

Suburbia has been a new and transitory experience in American history. We did not always live like this because it did not make sense to. Then after World War II, with lots of federal help, suburbia boomed - is it now going bust?

Any Thoughts.

It's not just Long Island or even the suburbs for that matter; it's all along the coasts of the US (have a look at California!); in fact it is happening in other countries as well!

As far as Long Island; what makes it even more dangerous here is that the taxes have risen based on the inflated values; budgets have swelled due to artificial prosperity. When (not if) prices fall, the taxes will not. Long Island will have to cut back significantly in order to do that by laying off teachers, police officers, etc.; adding to the recession. If you grieve your taxes now, they will probably lower them somewhat just to make people feel that they are getting something so they will have less to complain about.

In my own opinion, I believe that Long Island is in a death spiral and anyone who is looking to buy their first house should rent, save their money and wait it out. When the smoke clears, it will be obvious whether it is worth staying here or relocating. Like I said, the prices will fall, but the taxes will not; the quality of life here is deteriorating significantly.

[LongIslandBubble]

If you are selling your house and think that if your price isn't reached, you will just rent the house out until the market gets better, I will give you this one piece of advice:


When prices collapse and we are in a recession; there will be many more rentals and fewer renters. When many jobs are lost, younger people tend to stay with their parents longer and the elder tend to stay with their children; thus increasing vacancies. At the same time, those who bought will turn parts of their house into rentals in a struggle to keep their houses; further increasing vacancies which will drive rents down.

Best advice I could give anyone selling is to get out right now; you will get less than what you thought you would, but next year you will be kicking yourself for holding out.

Buyers were fighting over houses in the last six years or so, driving up prices; now the sellers are fighting over buyers which drives prices down.