Ah, New York! There’s really no city quite like it, is there? No place on Earth has quite the same dynamic, vivid lifestyle. Really - who doesn’t want to live here? This is truly the city of opportunity, in every way imaginable. But if you’re going to make it in the Big Apple - you should start wondering where you’re going to live. And this issue takes you to one of the most hotly debated topics - renting vs buying in NYC. How should you form your stance when it comes to your new NYC home? Don’t worry - we’ve got a few tips for you right here!
Why buy a home?
So, if you plan on moving to New York - you should figure out how you’re going to live there. For starters; is renting the best idea? Now, let’s be realistic here - if you’re a broke college student, this dilemma isn’t something that you really need to solve right now. In the beginning, almost everyone rents their New York home. But if you’ve been here a while, or you’ve got
There’s a reason why people are willing to invest a lot of money into owning their homes; especially in New York! After all, think about it - home-ownership is an essential part of the American Dream. Work and study hard, and prosperity is just around the corner; which only truly manifests itself once you’ve got a home to your name. Let’s face it - few people actually view renting an apartment as an end goal in their New York careers. Instead, most try to envision a future where they’ll be paying a mortgage instead of
Buying means a bigger net worth
Okay, sure - on an emotional level, we all know what we think of renting vs buying in NYC. Really, there are no two ways about it - we would all like to purchase a home of our own. But the question is - is this a good idea, financially? If you’ve got the means, should you actually invest money in real estate in New York City?
Well, in a lot of ways - yes. Remember - while even just a down payment for a New York home may set you back quite a lot; you’ll actually be increasing your net worth. If you’re unsure - your net worth is the sum of every kind of financial asset you own, minus all of your current liabilities. So why is this number important? For example, a higher net worth means you’ll be able to borrow more money at lower rates. Plus, instead of paying rent for an apartment you’ll never own - each month you’ll be paying a mortgage on something you truly own.
Renting vs buying in NYC - the other side of the coin
By now you must be wondering - so far, it seems that buying is a much better option than renting; so is the dilemma of renting vs buying in NYC even real? Well, as you’re about to see - it’s painfully real. Because while home-ownership may have its boons; there are really good arguments for renting as well. These are all kinds of things to remember when moving, but also before deciding for any living arrangement - so pay close attention.
Your money is tied up
While investing in real estate may seem like the only logical option if you have the money - you'll find that not all people do that. Which makes the question of renting vs buying in NYC all the more difficult. For example, you can see many people with top salaries living in great rented apartments instead of buying their own; so why is that?
Well, to put it simply - buying your own home ties up your money in a big way. First of all, a mortgage payment is a lot less flexible than rent; and it's something constantly hanging over your head. Plus, it's not just the mortgage - there are all kinds of other secondary costs people don't always think about. For starters, you'll have additional maintenance costs the entire time you own that home. And all of the money you invest in your down payment and maintenance could be better invested elsewhere. While real estate is a more secure investment - it's also less liquid. And the returns you may get on the stock market can be both bigger and quicker - so this is a legitimate dilemma.
You’re forced into a bigger commitment
Sure, owning a home is nice - but it’s also both expensive, and a constant chore. Because if you think of renting vs buying in NYC, and you end up buying; it’ll be awhile before you get a return on that investment. Realistically, you’ll have to live in that home for at least five to six years before you reasonably make your money back. And it’s not just about the money - if you’re someone who’s unsure whether they’ll have to move for work, this may be a bigger commitment than you can manage.
And if you’re thinking about subletting as a way of maximizing profit - that’s not a bad idea. But if you’re living in a co-op, you’ll have a board to answer to. Also, you’ll see that there are more rules about subletting than you can imagine - and they’re pretty strict. So before you buy your own home - think about all of this long and hard!
Let’s get the obvious fact out of the way. Finding apartments in New York City is hard. It’s a very difficult thing to do and there’s no denying it, but it’s a great city to live in. There’s no city in the world that’s like New York which is why it’s basically internationally described as its own country, and it’s where millions visit each year.
Of course, you’ll find apartments that are cheap, but they’re probably rat infested shoe boxes with a broken radiator. You want to make sure you do your research when you’re moving into a city like New York, which means looking into which neighborhoods are safe and which ones are close to your job.
Ways to Waste Time Apartment Hunting
- Spending your time looking at apartments you can’t afford.
- Looking in neighborhoods that aren’t a good fit for them.
- Failure to convince the landlord they’ll be the ideal tenant.
When you’re looking for an apartment in NYC, you need to determine your budget. Figure out what you can afford each month including rent, utilities, and other bills like cable. If you start your search before determining your budget, you’re wasting your time.
What You Need for Renting in NYC
- You need proof that your annual income is 40x the monthly rent. Make sure you have the necessary paperwork to prove this to the landlord.
- A credit score of +700 or more. It’s an indication that you pay your bills.
- Bank statements.
- It’s best if you have a letter of reference from your past landlord.
Landlords in NYC don’t play around. They have very high expectations for their tenants and this is especially true in Manhattan. There are certain areas in Brooklyn, Queens, and the Bronx that are more lax in their requirements, but you still want to make sure you’re in a safe area.
Moving to NYC?
If you’re moving into the city and you need some help, contact one of the most reputable New York moving companies, Divine Moving. No one knows New York City better than us and if you need to rent some storage space, we can provide that as well. So, instead of having to store anything somewhere else, we’re your one stop moving shop.