RENT OWN SELL
Newyork
RENT OWN SELL
Newyork
For many people, living in New York is the dream. If you’re thinking of moving to the city and are wondering whether it’s worth it to buy an apartment or condo rather than rent, you’re in good company. Many of those considering making the Big Apple their home also deliberate whether they should rent or commit the significant financial outlay required to actually own property here.
If you’re weighing up your options, check out the guide below to help you make a decision. There are many other important things to consider, too, such as how long you’re planning on living in New York, whether you’re open to taking in a lodger, exactly where in the city you want to live, and the amount of the deposit you have available.
While buying an apartment or condo in New York is a significant investment, it may well be the best one you ever make. Property prices have skyrocketed in recent years, and this upward trend is showing no sign of slowing. Indeed, as living in New York is being increasingly seen as a status symbol for people all around the world, its desirability factor isn’t likely to diminish. The national and global appeal of NY is likely to keep prices on an upward trajectory for the foreseeable future.
We all know what it feels like. When you pay out your rent every month, it feels like the money simply disappears into the ether – which it kind of does. However, when you’re paying a mortgage on a New York property, you’re paying into your very own asset – one that’s all yours and that you’re free to sell whenever you like. And don’t forget that the mortgage interest you pay off every month is tax deductible.
One of the best things about owning your own place is that you’re completely free to design, furnish, and decorate it in any way you wish. There’s no need to get your landlord’s permission if you want to paint your hallway bright pink or switch out an old refrigerator for an energy-efficient appliance. Remember, though, that you’ll need to get permission from the local board if you’d like to make any alterations that involve construction work.
When you rent a property, you’re at the mercy of your landlord regarding annual rent increases. This isn’t the case when you buy; your mortgage payments are, generally speaking, the same every month, giving you both security and the ability to better budget. And, of course, you’ve also got the peace of mind that your tenancy can’t be terminated with a few month’s notice.
If you own your own place in New York, you’re also free to take in a lodger, which can make for a major contribution to your household bills. And if you fancy heading off on a vacation or a road trip for a few weeks? You’re also free to put your pad on, for example, Airbnb, to mitigate some of those traveling expenses. In short, when you own your own home, you can ensure it works hard for you.
And if you’re still not sure whether you’re better off buying in New York? It’s easy to undertake a rent vs buy analysis to get the answers you need. To work your potential annual rent expenses, simply start with the annual rental cost and add 1-2% for each subsequent year you plan to stay in the property, along with any brokerage fees you’d be required to pay. Don’t forget to add the monthly cost of renter’s insurance, too: the average cost is around $18 a month.
To work out your mortgage cost, calculate your gross yearly expenses, including the mortgage payments, property taxes, maintenance and insurance costs, and initial closing costs. Add to this figure the anticipated yearly cost of homeowner’s insurance. It may be helpful to know that the average cost of home insurance in NY is around $107.25 per month. Subtract the equity on the property, too, for ultimate accuracy.
There are many benefits to buying an apartment or condo in New York. As well as having the freedom of your very own space, it’s highly likely to be a great investment. Traditionally, property never loses its value (despite some temporary blips in the market) and the real estate scene in NY is particularly vibrant, with huge national and international demand for properties keeping prices on the up and up.
And the best bit? You’ll know that every single one of those monthly mortgage payments goes towards financially feathering your new nest.
