June 29, 2022
Real Estate

Choosing to Rent or Buy in New York City

The Big Apple – one of the most desirable cities in the world. So many people put it on their bucket list. Some of them just for the sake of traveling, and others want to settle here and try their luck. It’s the city of opportunities, differences, and entertainment. That’s why it’s no wonder that looking for a home here can be a challenge for two different reasons. One of them is availability, and the other one is undoubtedly pricing. NYC is known for expensive housing, which is why many people can’t decide if they should buy a home or find one to rent. If you’re thinking about moving to NYC, it’s essential to read this guide. It will help you between choosing to rent or buy in New York City and moving to the Big Apple smoothly and stress-free.

New York City
New York City

Think about your living situation first

Even though the moment has come so you can afford to buy an apartment, there are several factors you need to consider before you make this decision. You should know that buying an apartment in NYC is quite expensive. Apart from the purchase price, you need to add about 10% of that price, to pay all the additional expenses. Therefore, you need to make sure the apartment or house you buy is truly something you need. To help you decide, make sure you consider:

The size of your household – depending on your age and living situation, think if your household will grow over the next couple of years. It might change how you feel about a specific property, and you may choose a bigger one instead;

Your job – mortgage payments last for more than 25 years, which is why you need to consider how stable your job is. It means you need to think about the future of your career and see if there are any possible relocations to another city in the future;

NYC love – think carefully if you love living in NYC and the particular neighborhood you chose. See if New York is the right long-term choice for your lifestyle.

Also, if you are not a US citizen, it is crucial to investigate how long you can stay in the States at a time. Moreover, what you are planning to do with the property when you are away.

Remember the 5-year rule when purchasing a home

One of the things to consider when choosing to rent or buy in New York City is your long-term plan about staying in that property. To sell the place and make money on it, you need to wait to break even. Considering the standard purchase fees, it takes about five years to take those back. So, if you plan on staying in the property for a while, it might be a good idea to buy a place in New York City.

Buying a home after a pandemic

One of the reasons you should invest in an NYC property at the moment is the drop in prices after the global pandemic. The COVID-19 pandemic has made the prices of homes in NYC go down, which may be the right moment to think about the purchase.

The budget of homeowners

NYC is indeed expensive – it is in the top three most expensive markets in the country. However, not all parts of the city have the same prices – some of them are cheaper than others. It’s true that most people think of Manhattan first, but it’s the place that can give you a headache. Try finding a home in some other part of the city, and you will be surprised by the difference. Also, when it comes to the housing budget, you should know that you get a tax break once you purchase a property. It is one of the factors that can help you with choosing to rent or buy in New York City.

Advantages of renting in the Big Apple

Having your own home is great. However, there are benefits to renting a home in NYC, too. We prepared a list of reasons why you may give up on buying for now and find yourself a rental.

Prices

As we have mentioned, the prices of both rentals and homes for sale are pretty high in NYC. However, you might not still be ready to purchase, and short-term rental is a much better option.  Also, rentals outside Manhattan come with more reasonable prices, and you can find a place even if you’re on a budget.

Flexibility

Rentals give you a dose of flexibility you can’t have with a purchased home that easily. If your income changes (up or down), you can easily switch to a more suitable place. Also, any job relocation, even sudden ones, will not cause such trouble. It’s easier to move if you’re not tied to a property with a mortgage.

It’s easy to maintain a rental

One of the main things to consider when choosing to rent or buy in New York City is the level of maintenance responsibility you’re ready for. With a rental, you have far fewer responsibilities, as there’s a super you can call to help you out any time. The situation is a lot different with a purchased home – apart from the mortgage costs, expect maintenance costs, sudden repairs, and other expenses.

Whatever you decide – make sure your relocation is safe

When choosing to rent or buy in NYC, one thing is for sure – you will have to relocate there. When picking the right moving company, you have to consider many things, too. You have to check their reliability, professionalism, online reviews, services their offer, and prices. It’s necessary to investigate the moving rates in NYC because they can vary significantly. Only with thorough research can you get the best deal for your relocation. So, find a moving company that will check all the boxes – be reliable and professional and provides services at reasonable prices. Luckily, there are local NYC moving companies you can find with ease and have the smoothest relocation ever.

Finally, take your time to find a home. The NYC market is enormous, both for buyers and renters, and there’s something for everyone. Just be patient, focus on a couple of favorite neighborhoods and wait for the best moment to pick your new home.

The decision of whether to rent or buy in New York City is not an easy one. Both have their advantages and disadvantages and the only way to decide which option is right for you is to evaluate not only your current situation and lifestyle but also try to anticipate what the future may hold.