When moving to New York City, a big question arises. Renting vs buying an apartment? What is better? There is no absolute answer to what is better in this situation. Both sides have their advantages and we will discuss them in-depth in this article. So, before calling your NYC movers, make sure to read this article and think about your options. Getting a new place is a big step in anyone’s life and that is why you need to be completely sure that you are going to make the right decision. So, without any further ado, let’s dive in!
Renting vs buying – what’s to know?
When you are considering your options, it is good to see which option has which benefits. The most important thing here is not to listen to anyone’s advice, but to make the decision on your own. It is you who will live at your new apartment and you should choose what fits you best. New York City is a big city and the prices for apartments are huge whether you are renting or buying. But, if you are considering this, it means that you are financially ready for this endeavor. So, let’s see what are the benefits of both of these options!
The benefits of renting in NYC
There are many benefits to renting an apartment in New York City. There are also many drawbacks. Let’s see which ones are which!
Test drive the neighborhood
Renting in NYC allows you to “test drive” the neighborhood. This means that you can get a feeling of the neighborhood and whether you want to commit to buying the property. This is important in New York City because there are so many different neighborhoods with so many different characteristics. If you like living there, you can buy an apartment. You will also get to know how long do you need to get to work or commute to other locations in the city. In addition, you will be able to see if there are enough stores and recreational options in the neighborhood. Living in a big city can tire you out so having a park or two in the neighborhood will surely make your life better.
One price for all
When you rent an apartment, there is a high chance that you will not have to worry about paying the bills separately. Your landlord will probably come and collect the money for your rent and utilities and pay the bills themselves. This is a big time saver. Especially in a big city such as New York. As we all know, time is money! This will also help you a lot when considering your budget because you will have to pay the exact same amount every month and it will make budgeting a lot easier. However, the price is likely to go up in the colder months but talking to your landlord about it will probably be enough to determine the price.
It is cheaper
As we all know, renting an apartment is a lot cheaper than buying one. In the renting vs buying financial battle, renting wins by a huge margin. This will also help you save enough money for your down payment if you plan on buying an apartment and residential movers NYC to relocate you. In addition, it will be the credit needed for you to qualify for a mortgage. Banks require a clean record of on time rent payments in order to consider your payments as credit for mortgage qualification. All in all, this is a great long term financial plan!
The benefits of buying in NYC
In this part, we will talk about the benefits of buying in NYC. We will, of course, also cover the downsides of renting vs buying.
Ownership of an apartment
When you buy an apartment, you know that it is yours and nobody else’s. This will bring a lot of ease in your life knowing that you can move locally and live in a property you own. You will have no obligations to anyone but yourself. In addition, when paying off your mortgage, you will, one payment at a time, get more and more ownership of the apartment. In the case of renting, you are getting absolutely no ownership of the apartment and also giving your landlord even more money and equity. Also, when you pay the entire mortgage, you will be qualified for credit loans.
You can change up the place
This is one of the main benefits of buying an apartment in New York City. It is also closely related to the previous paragraph. You will be able to change the place up as much as you want. If you want to do a paint job in your living room, go for it! There is no landlord who will refuse you to embark on such an endeavor. If you do not like that wall between your living room and your kitchen, you can easily call the workers and tear it down! You can even create a room so you can move your piano! Your place, your rules. Nobody to answer to but yourself!
In addition to having your own place, you will also be able to reduce the payment needed for you to actually buy it. There are many tax and mortgage reductions and you only have to check with the IRS in order to find out. One such tax is, after you pay off your mortgage, you will be able to keep the first $250.000 of profit if you are single, and the first $500.000 if you are married. In regard, in renting vs buying battle, buying clearly wins.
This is the end of our article about renting vs buying an apartment in New York. There are benefits and downsides of both, and you need to make the right decision for yourself. We hope that this article was helpful! With all that said, good luck with making your decision!