There is no denying that New York is one of the greatest cities in the world. It has that special something that drives people forward and keeps them going. Regardless of whether you already live in New York or are looking to move to the Big Apple, you will need to consider whether it is better to rent or buy in NYC.
The answer to this question depends on several different things, but the fact of the matter is that it depends mostly on your current situation and your ambitions. Both renting and buying have their pros and cons, and we will take a look at these to make your decision about what is right for you a bit easier.
The dilemma of whether to rent or buy in NYC
Deciding on whether you should invest in buying a home or rent a place to live in NYC is possibly one of the most difficult decisions you will need to make during your life in the Big Apple. You might want to consult with some relocation specialists. Knowing the upsides and downsides of both options will help make your decision an informed one.
The pros of renting in NYC
One of the biggest draws for those who rent is the fact that it offers you certain flexibility. You might be young and at the beginning of your career, expecting to move upwards in your field of work. Renting means that you will be able to change your home as your income increases a lot easier than if you were a homeowner. This flexibility also means you can contact moving professionals at U. Santini Moving and Storage and upsize to a new home according to your needs.
The maintenance costs associated with renting an apartment or house in NYC are also much lower than those associated with homeownership. In addition to this, the upfront costs of renting in NYC are much lower, meaning you will need less cash for the deposit, something that is often important to young professionals. While you might not incur the maintenance costs, you should still make sure the property you plan on renting is in good condition. There are several things you should pay special attention to before renting an apartment. Make sure to do so to avoid unnecessary hassle later on.
Your rental fees will often be much lower than any mortgage costs you would have as a homebuyer. Tax is another good reason to choose to rent over property ownership.
In addition to all of the factors listed above, the rental property market in NYC is so large that you are almost guaranteed to find a place that will satisfy all of your needs.
The cons of renting in NYC
One of the main aspects you have to take into consideration is the financial aspect of renting. Renting means that you are paying every month towards living in a place that will never be in your ownership. In addition to that, you must keep in mind that NYC is expensive. The rental prices in NYC are amongst the most costly in the country; only the San Francisco area rivals New York in that aspect. Prices will differ between different regions of New York, and the outskirts will no doubt be more affordable than the Manhattan area. However, overall, rental prices in NYC are still among the most expensive in the country.
The pros of buying in NYC
Buying property in NYC will require a significant investment, but it is an investment that will most likely pay off in the long run. Buying property now, during the COVID 19 pandemic, might be an even better opportunity than usual. The prices of properties on the market have decreased due to the global pandemic, and buying now might be more affordable than it was before. This is just one of the real estate trends that emerged as a result of the COVID-19 pandemic. Make sure to find out as much as possible about the market before deciding to buy a property.
Paying off mortgage costs means you are paying installments towards something that will one day be yours. This means you are not paying only to occupy the property but to own it one day. Let’s say it will take you 30 to 40 years to pay off your mortgage. There is a good chance that your final mortgage installment will coincide with the time of your retirement. This means you will have no mortgage fees anymore and will be able to spend your pension funds on other things, such as enjoying your senior years.
Investing in property or buying in NYC is one way to generate additional value. Consider asking the following questions if you are thinking about investing in property. Mortgage payments are almost like a forced savings account. One of the reasons for this is that property value in NYC tends to increase at a higher rate than rental or mortgage fees. This means that by the time you pay off your home, its value will have increased, and it will, most likely, now be worth more than what you paid for it.
The cons of buying in NYC
While buying a property in NYC will help you generate wealth, it will also come with some expenses. Being a homeowner means that you will be required to pay property tax and other fees. Maintenance costs can also be high, so keep that in mind when trying to decide whether to rent or buy in NYC. At some point, you will probably need to renovate as well. One thing you won’t need to worry about during any renovations is where to store your belongings. With just a little effort, finding storage is easy in this city. Without a doubt, you will need to invest in maintenance or repairs when you least expect it at some point during your homeownership.
Being a homeowner in NYC means that, at some point, you will face a situation that will require excellent negotiating skills, patience, and understanding. It’s just how it is in a city the size of New York. Get to know your new neighbors as soon as possible as this will make your life more comfortable in the long run.
Now you know
Now that you know the upsides and downsides to both property rental and ownership in the Big Apple, it might be easier for you to decide which route to take. No one can make this decision for you, so don’t rush it, and consider the pros and cons when deciding whether it is better to rent or buy in NYC.