So you just landed a job in New York City, and now you’re thinking of moving there. You can either rent or buy your own place, but which exactly is the better option? Before you reach out to a New York moving company to help you relocate, first take a look at the pros and cons of renting vs. buying a house in the big apple.
Renting vs. Buying In New York City
Before you start apartment hunting, learn about the local rental and housing market. This is so you can plan your budget before your move. We’ve compiled the pros and cons of renting vs. buying a house or apartment in New York below.
Cons Of Renting In New York City
According to a real estate listing site, the median rent for a studio apartment in New York City is $3,237. If you prefer renting a 1-bedroom apartment, prepare to cash out around $3,805. While the rent depends on the specific area, it’s obvious that rental prices for apartments in New York are high.
Additionally, renting means you’re investing your money in a place that isn’t yours. Instead of paying mortgage fees every month to secure a home of your own, you’re paying monthly rent to a landlord who most likely will be using that to pay his mortgage. Overall there’s less return on investment on your hard-earned money when you choose to rent in such an expensive city.
Pros Of Renting In New York City
Buying definitely has more financial rewards in the long run than renting. But the option that is right for you depends on a variety of factors, not just finances. Although rental prices are indeed quite high, they’re still cheaper than what you’ll have to shell out should you choose to purchase a home instead. Understandably, not everyone has that kind of money.
Another point in favor of renting is the flexibility it offers. New York City is full of opportunities for work and your personal life, and renting offers you the flexibility to move from one apartment to another whenever you need to.
Additionally, when you rent, you usually don’t have to shoulder maintenance costs like fixing your bathroom or kitchen pipes. The responsibility to fix this typically falls on the landlord. This means that you don’t have to pay out of pocket for maintenance and repair services for your apartment.This saves you time and money, both of which are valuable assets in New York.
Cons Of Buying An Apartment In New York City
One of the cons of buying an apartment is the lack of flexibility. It would be very hard to move apartments if you were to be assigned to a different part of town for work. You may even have to go to the trouble of listing and selling your property before you can even think about moving homes.
Other cons of buying an apartment include real estate taxes and upkeep costs. When you own real property, you pay a lot of fees and taxes out of pocket. Buying an apartment means lots of additional, and sometimes unexpected, costs. Between repairs, regular upkeep, and renovations you may be called to do, the price of owning an apartment goes beyond just the monthly mortgage.
Pros Of Buying An Apartment In New York City
If you don’t have the discipline to stash money away, paying your mortgage regularly is like a forced savings plan. And real estate is definitely a good investment. Home prices generally rise faster than rent. Despite fluctuating prices, overall home prices in New York have significantly increased. And when you decide to sell your property, the increase in value is taxed at the capital gains rate, which is lower than your income tax rate.
Additionally, owning an apartment means getting a tax break. Mortgage-interest costs and property taxes are deductible, which can add up to significant savings as time passes by. Moreover, as you build equity in your home, you are also creating value that you can borrow against.
To sum it all up, there are numerous pros and cons to renting or buying an apartment in New York City. The answer really depends on you, what you need, and what you have. If you’re looking for a long-time investment and have the means to do so, then you might be better off buying an apartment. However, if you’re living paycheck to paycheck and would like the flexibility to move anytime you want, then renting an apartment might be more suitable to your lifestyle.