Renting vs. Buying in New York City
The real estate market will always point towards buying a home if you intend to remain in the same location for the next few decades. Conversely, if you expect to live in the area for just six months, renting is a far better option. Unfortunately, there is a pretty big gray area between buying or renting, especially in a place as expensive and large as New York City. Most people in the city rent their apartments, condos, and lofts. Each neighborhood is different, though.
The Right Time to Buy
When it comes down to it, most people want to own their home – sooner rather than later, for many. If you’ve lived in New York City for a decade, are in your early- to mid-30s, then you’re probably spending between $3,000 and $5,000 per month on rent. It would make sense to just buy a home in the area at this point.
On average, a home in New York City will appreciate in value. This means you’ll spend a few thousand out of pocket to own your own place, and your payments will typically go towards the principal, which builds equity. In the end, you could sell that home for even more than you paid, which is sometimes around $1.2 million or more.
Choosing to Rent
For college students, young entrepreneurs, and those seeking their path in life, renting makes perfect sense. There is an entire generation that hates the idea of being tied down to any particular location. Renting offers flexibility, options, and easy payment plans that rarely, if ever, change.
Of course, renting may be costlier in the big city, especially after a few years of paying for the same place.
If you’re torn between renting and owning in New York City, contact MDRN Residential. We’ll answer any questions and address any concerns you might have!