MANHATTAN HOUSE SOLICITATION!!! Buy Now or be priced out forever!!

I just received a Manhattan house solicitation for next week. It is titled the intrinsic value of ownership. It includes the following analysis: 1BR purcchase price $995K (919 sf). Down Payment $298.5K Mortgage $696.5K Mortgage Rate (5/1 ARM) - 5.25% Monthly Mortgage Payment (Interest Only) $3,047 Monthly RE taxes $809 Monthly Common Charges $1,206 Total Monthly Payment $5,062 Avg. Monthly tax... [more]

I just received a Manhattan house solicitation for next week. It is titled the intrinsic value of ownership. It includes the following analysis: 1BR purcchase price $995K (919 sf). Down Payment $298.5K Mortgage $696.5K Mortgage Rate (5/1 ARM) - 5.25% Monthly Mortgage Payment (Interest Only) $3,047 Monthly RE taxes $809 Monthly Common Charges $1,206 Total Monthly Payment $5,062 Avg. Monthly tax deduction (45% Rate on Int. and taxes ($1,735) Net Avg. Monthly Total Cost $3,327 Avg. Est. Monthly Rental Cost $4,212 - assumes $55 psf -- yikes! Owner Savings Per Month $885 ---------------------------------- Let's look at that more carefully, shall we? My initial impression $1million for a 1 BR east of Third Avenue -- Yikes!!! No credit for the renter on the $300K used in perpetuity -- great math hmmm, a 5/1 arm - interest only -- wow -- I would love to reset after hyperinflation kicks in -- what a bargain! Tax deduction assumptions -- no discussion re AMT or your current tax bracket which I suspect for anybody willing to buy a $1million one bedroom and the new spend, spend, tax the rich will not hold ------------------------------------------ But if you want to hear more on the above pitch -- head on 5/7/2009 to meg@manhattanhouse.com 505 east 75 in Lycee francais ----------- Mayor's Office rep, economist, wells frago mortgage, corcoran - Pam Liebman ------------------------------------- Stevehjx, love to hear your thoughts on this.......... [less]