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Rent vs. Buying

April 9, 2018 | By Imma Giocoli

Rent v. Buying 

We are often faced with this question Do I continue renting or should I consider purchasing?

There are pros and cons to both sides, renting doesn't really provide you with future gains, nor does it allow you to take tax deductions but it certainly can  be satisfying. 

There are so many financing options out there that you should consider purchasing if you are paying over 2k a month for rent.

If you prefer the lifestyle of renting v. owning where you have no responsibility to repair things then stick to renting, just remember that no risk = no reward.

With ownership you are able and capable of not only gaining equity, you can always rent the property out and you can turn it into an investment vehicle and travel the globe.

I always sway to the side of ownership despite the fact that owning comes with many responsibilities, even though the snow shoveling can become a pain in the North East  its a really great feeling to know you own your own home and that no one will kick you out, you are in total control of your future and it is your responsibility to keep the roof over your own head. 

If you can come up with the downpayment, or rent something that is under 2k to allow to save towards the purchase of your own home that is the way to go, after all the time will pass, you will be renting year after year - so make a smarter choice, pay less to save, come up with at least 10% down payment and buy yourself a home, a place where you can stay and play.

Putting your money to work for you is the right way to go, dont get caught up renting until you are priced out of NYC all together. 

So, call us to discuss the many options that do exist and allow us to talk and walk with you through the process of home ownership. 

The advice is free, the information is priceless. 

 
Tags: #buy

Renting vs Buying in NYC: How to Decide?

November 14, 2022 | By IMMA GIOCOLI

Renting vs Buying in NYC: How to Decide?

 

Alt-tag: A family taking a key from a woman deciding on renting vs buying in NYC

Living in New York is everything but affordable. People come to the Big Apple chasing dreams and careers. Since this is what we're all willing to pay for, the demand for apartments here is high - and so is their price. Buying a residence is quite expensive, and so is renting. It's so expensive that it became kind of ''a thing'' for New Yorkers to shamelessly ask strangers how high their rent is. Should you rent or should you buy? Let's consider the topic of renting vs buying in NYC together to help you make the best decision.

Renting vs Buying in NYC: the prices

The first thing you need to know in order to make a well-informed decision is the prices on both sides of the spectrum. It seems like the rent prices in New York hit the ceiling every year. However, the ceiling somehow becomes even higher each year. The average renting price for a two-bedroom apartment in the Big Apple is 2,224 dollars. This is almost double the national average, which is 1,360 dollars! 

As for buying - the average cost of a square foot in NYC is around 850 to 1600 dollars. This means that if you want to have a studio in New York, you'll have to have a half-million dollars. 

 

Alt-tag: Piles of money in a briefcase

Caption: Renting vs buying in NYC – it depends greatly on how much you’re willing to spend.

It depends a lot on the part of the city you choose

Of course, the prices of apartments in Midtown and Inwood are very different. It really depends on the neighborhood you choose and the lifestyle that is possible there. The most expensive neighborhoods to live in New York are:

  1. Midtown
  2. Tribeca
  3. SoHo
  4. Flatiron District
  5. Chelsea

On the other hand, the most affordable neighborhoods you can live in are:

  1. Inwood
  2. Fort George
  3. Washington Heights
  4. Hamilton Heights
  5. Chinatown

Renting gives you the flexibility

Purchasing a home is a wise decision if you anticipate remaining in the same location for at least five to seven years and have the financial resources necessary to do so. If, on the other hand, you are uncertain of where your life will take you, either emotionally or professionally, it is frequently preferable to stick to renting. Renting is flexible and based on a commitment of one year rather than purchasing a home outright.

Buying grants stability 

Think carefully about where you want to go in a few years. Do you plan on making any significant life changes in the near future (such as getting married, having a kid, or switching employment) that would entail a move? Alternatively, do you plan to remain where you are?

If you want to remain in New York for the foreseeable future, buying a home will provide you with a "feeling of belonging and sanctuary amid tough times." However, renting is the better option if your stay in New York City will be less than three years.

Make sure everything is thought through

If you decide to stay in NYC for a very long time, it's best to consider all the steps that will get you there. One of the most important considerations is planning a move, especially if you're moving interstate. For example, if you're moving to New York from New Jersey, you need to make interstate moving checklist. Pro movers say it's best to follow the plan to detail if you want to have a smooth and secure moving and a new beginning of your life.

Rent if you want to live lavishly without breaking the bank

Maybe you're young, single, a live-in-the-moment kind of person. Or, you have a family and need a bigger room than you can afford to purchase in New York City. In both cases, renting is a far better option if purchasing would require too many sacrifices. Some people who opt to rent do so because they can afford a certain level of contemporary luxury on their rent check. The same amount of money put toward a mortgage each month may mean settling for a smaller apartment in terms of square footage, amenities, and location.

 

Alt-tag: A woman looking out a huge window in NYC

Caption: Landscapes in NYC can be astonishing, but how much are you willing to sacrifice for them?

Buy to achieve the tax advantages of ownership 

Borrowing money to make a purchase increases your buying power, which may qualify you for a tax break. Most purchasers who finance their purchases with a mortgage will profit from both the leverage that will increase the value of their initial equity investment and the amortization that will reduce the total interest paid over the life of the loan. Capital gains may be deferred under the 1031 exchange regulations for homeowners who want to hold onto their homes as investments in the future. So, buying your first condo is not such a bad idea as far as your bank is concerned.

Rent now so you can afford to purchase when the time is right

As professionals at Van Express Movers suggest, renting is likely the default setting for most people looking to purchase in New York City, but it can become a well-thought-out plan if you know exactly where and what you want to buy. Imagine that the ideal apartment is only slightly out of reach financially but that it would be within reach with another year of saving. You're going to put your apartment hunt on hold while you save more money this year to purchase a more affordable apartment.

There is, of course, danger in pursuing this plan. Your dream property may become even more out of reach if the NYC market continues to strengthen while you wait.

 

Alt-tag: A woman writing next to moving boxes

Caption: Rent now to move to your dream house one day

Final thoughts

Many factors strongly influence the final decision on the subject of renting vs buying in NYC. The strongest ones are your finances, lifestyle preferences, and where you see yourself in the future. Taking the future into account is crucial. Make sure to imagine all the scenarios, both with you renting and buying a property. Consider all the little things that would happen either way. That is the best way to make the best decision for yourself and make your dreams come true.

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Photos used:

https://www.pexels.com/photo/a-happy-family-talking-to-a-realtor-8730060/

https://www.pexels.com/photo/hard-cash-on-a-briefcase-259027/

https://www.pexels.com/photo/woman-in-black-jacket-and-blue-denim-jeans-sitting-on-window-with-the-view-on-empire-state-building-4451510/

https://www.pexels.com/photo/glad-woman-writing-down-notes-during-while-packing-4506226/