When you are purchasing a home, homeowner association, condo or co-op or even considering a rental, some desire a renovated place, some just want a very clean place, some will take anything just to be in a specific location. However, the exception would be a one- or two-year renter who wants the best possible condition for the time that they would reside there or at best a very clean place.
So if you are single, married with or without children or whatever your circumstances, some will need to think about schools and some may not.
If you are purchasing or renting a home, home owner association, condo or co-op and intend to purchase a home in three to five years and have children less than five years old, schools for the near term may not be so important, except for one thing; the next person that might purchase your place might have children who are older, where schools just might be a priority for them.
Once you know your budget that you feel most comfortable spending on whatever type of primary residence you need and want, then you should also consider the best school district that your dollars will buy, even if it is for a short term or longer term.
One day soon or many years down the line, your next buyer will probably want and expect superior schools just you like did when you initially bought.
I have found in and around Long Island that the best school districts tend to elevate the value of the homes in the surrounding areas.
This is mostly true across the U.S.; but there are exceptions where a tourist and vacation areas exist and water front and water view domiciles are situated.
Even though there are cycles to real estate, generally speaking, in the long run, you will receive back, the biggest “bang for your buck” if you consider purchasing in the areas with the more exceptional and above average schools. However, this doesn’t mean you should go overboard and stretch yourself to an unsustainable level of mortgage payments.
Qualifying for a mortgage will most of the time allow you to go up to three to four times your gross salary (depending on your debt/income ratios) without going to a point, where you are living for your mortgage; you don’t want to be “real estate rich and cash poor!”
But you must consider your real estate taxes, carrying charges, (maintenance on a co-op or common charges on a condo).
Also, PMI-Private Mortgage Insurance will be required, if you are putting down less than 20 percent on a home, home owner association or condo, but there are exceptions depending on your purchase price and this must also be considered in your monthly mortgage payment.
Co-ops usually require at least 10 percent down, but mostly 20 percent and debt to income ratios can range from 27 percent-36 percent in Long Island, Queens, New York City and Brooklyn.
There are also flip taxes, application and processing, and move in/move out fees as well as whatever additional costs involved in purchasing a Cooperative apartment.
In addition, one must also consider your lawyer’s fee, transfer and mortgage taxes, luxury tax of 1 percent of the purchase price, if $1,000,000 or higher.
For sure, most will not have to worry about the luxury tax ; but as they say, if you can afford the Rolls Royce, you don’t worry about the gas or repairs.
Obviously, if you are considering selling especially in our current market and your home is priced $2 million or less (or under $3 million in NYC) the market is still very strong with a larger than normal demand in those school districts that are highly rated.
Especially those that may have semi-finalists or finalist students in the Siemens Award Contest (use to be called Westinghouse Awards) as well as the Intel Science Awards. Those students provide a nice bump in the value of homes in those areas locally and across the U.S.
So whether you are purchasing or selling, schools are definitely a component that one should not overlook and to consider for return on investment) in the long run.
Lastly, even when purchasing rental property, the better the schools (especially around college towns) the better the quality of the tenant, the better the rental price.
