Renting vs. Owning a Home in NYC: Pros and Cons Compared
One of the biggest financial decisions you will make in your life is whether to buy your own home.
It is probably fair to say that many New Yorkers aspire to own an apartment in the Big Apple and when you search apartments for sale in NYC you will see a fantastic list of opportunities to think about.
It can help you to decide whether it’s the right time to buy a home in NYC by comparing the main pros and cons of buying against renting.
Here are some key points to consider.
The case for renting
Renting gives you a certain amount of flexibility in terms of where you live and it also allows you the chance to move around for work with a greater amount of ease.
You don’t have to worry about repairs to the property or certain maintenance costs when you are a tenant, as the landlord has to take care of that as part of the deal.
There are no real estate property taxes to pay on the property when you rent. Also, if you can get your hands on a rent-regulated apartment you will have a greater level of control over how much you pay in rent.
The cons of being a tenant
It is not that easy to get your hands on a rent-regulated apartment and that means your rental costs could easily spiral out of control as prices rise on a regular basis.
The other major downside of renting is that you never own the property. That means all of the money you pay is cash that you could have been using towards paying off a loan if you bought instead of rented.
Reasons to buy
When you are the owner of your own property you take control of your own domain and don’t need permission to make changes to your property or keep pets by asking a landlord.
The money you pay each month for your mortgage will be reducing the debt that you owe so that you will own the property outright once the loan term completes and you have made all of the payments.
The two obvious financial advantages attached to ownership are that the money you pay each month is contributing towards the ultimate goal of having the deeds in your hand with nothing outstanding. The other advantage is that you will benefit from any increase in property prices so you could sell your home for more than you paid for it when you decide to move.
Owning takes the uncertainty of rent hikes and being asked to leave the property by the landlord out of the equation.
There are pros and cons to both renting and buying. However, it is pretty clear that in the long run, it has to be a better bet to buy your own bit of real estate.
Isn’t it time you took a look at how you might be able to turn your home ownership dreams into a reality?
Let us know what you think by leaving a comment below!