The fact is that New York is one of the most expensive cities in America. But no price is too high for living in the city of dreams. The place of limitless possibilities, where everybody fits in and nobody’s a stranger. If you are moving to Big Apple, we suggest that you hire some if the trusted long distance movers NYC. And when it comes to housing, you probably think that renting is much cheaper than buying the real estate. Well, don’t be so sure. Renting vs buying a home in NYC, what should you choose? This is not a decision you should make lightly, you need to really give this some thought. Weigh all the pros and cons, and closely examine your finances and lifestyle. Let’s find out what suits you best.
Renting vs buying a home in NYC-what’s more affordable?
People usually assume that buying a place in New York City is way more expensive than renting. You will be very surprised when you find out that it might be the opposite. How is that even possible, you are wondering. First of all, rents here are very expensive in NYC. The latest research shows that the average rent on a one-bedroom apartment in NYC is roughly $2900, a month. This amounts to almost $35,000 a year! Meanwhile, with mortgage rates still lingering, buying a home can be surprisingly affordable. Monthly mortgage payment can be lower than $2900, depending on the full price of the real estate. Finally, renting vs buying a home in NYC, what’s more affordable? Long term, it seems to be buying. And for a short-term purpose that is definitely renting.
What is home equity?
Home equity is basically the value of home-ownership. Many people would pay back the mortgage and, own a little bit of their home rather than “throw away” rent to a landlord. So if you had you put down 20% on a $500,000 home, you’d have $100,000 in home equity. These numbers grow as you continue to make those mortgage payments. The other way to build equity is by seeing the value of your home go up over time. With a stable economy and a home’s value increase you can boost the sale price for your home drastically. For example, people who bought five figure homes in the ’70s were delighted to sell them for seven figures and more in the ’90s. This is something worth considering long term. And in New York, home prices are famous for going up.
Advantages of buying the place in NYC
The longer you stay in a home, the more sense it makes to buy rather than rent. The benefits don’t end with home equity alone. Here are some other advantages of buying the place over renting one.
- You won’t have a feeling that you are wasting your money on renting a place. On the contrary, with every payment, you will be closer to owning your home. Renting vs buying a home in NYC, still wondering what to choose? This is certainly one of the biggest pros of buying.
- You cannot get evicted. Nowadays landlords can kick tenants out of apartments pretty much as soon as their lease is up. That’s not something you can experience at your own place. And that peace of mind is priceless.
- Your house costs remain stable. Instead of biting your nails at lease renewal time, hoping your landlord won’t hike your rent beyond what you can afford, your mortgage payment will remain steady.
- You can decorate and renovate your home in your own style. With a home you own, you can do whatever you like with it. No more asking your landlord for permission to paint the walls, or daydreaming about decorating your place. You always wanted that ceiling swing? Now you can make it all happen.
What does your lifestyle say?
The main drawbacks to home ownership aren’t financial, they are practical. While you might gain financially, you lose some of your mobility. In NYC, two things make owning a home more desirable than elsewhere. First of all, everything involving housing in the city is very expensive. This means that the financial benefits of home ownership are proportionally more important. Secondly, demand for New York City real estate is expected to continue to rise in the next decades. Also, the limited size of the city in comparison to the growing population will guarantee that rise. The home ownership will become an even more appreciated and safe investment. If you can afford it, and you know you are going to stick around for a while, buying the place is the way to go. But don’t forget, never bite off more than you can chew.
Don’t buy if you are not sticking around
On the other hand, if you are a digital nomad or like to change your location frequently, owning a home will just pull you back. When renting the place, the main advantage is that there is no long term commitment. If you are moving for work opportunities, you should probably rent a place for a start. Take some time to feel the Big Apple vibe and decide if it will become your new home. Your decision depends on your future plans and lifestyle. Renting vs buying a home in NYC, think long-term in order to decide. Therefore, make sure you know approximately your plans for the next few years before you make a choice.
Delightful tax benefits
Owning a New York City home provides many delightful tax benefits. It arises from the ability someone has to deduct property taxes and mortgage interest from their income statements. And this is not something renters will not experience. And due to these benefits, people can additionally save a great deal of money. They can then reinvest this money, leading to far less monthly expenses. In other words, if you have enough money to buy, you can find yourself saving a great deal of money in the long-term. Sounds like a smart thing to do? It really is, but just if you are planning a long-term relationship with the city if dreams.
Now you’re in New York
To make a long story short, everybody usually starts with renting. This is definitely a good choice for the first time or for people who are just in passing. When moving to NYC, make sure you have reliable professionals by your side. Collect several moving quotes NYC and pick the most reliable and affordable one. And after you adjust and settle down, ask yourself -renting vs buying a home in NYC, what suits you best? You can always start with renting and then patiently look for a perfect place to buy. And remember, everything is possible, now you’re in New York.