There’s an advantage to living in New York. You’re close to all the attractions, the commute to work is easier taking the subway, and New York carries an excitement that both residents and visitors feel all the time. New York is the “city that never sleeps.” With the housing market on the upswing, buying may be an attractive option, but fluctuating prices are affecting not only the demand of housing, but sales.
According to The New York Times, although the housing market is ripe with opportunity, for young professionals, renting is the best option. While this may seem a little confusing, considering the availability of loans and access to housing, if you’re on an upwardly mobile career path, you may not be in New York long enough to reap the benefits of having a home, which would make purchasing much more expensive than renting over time.
Market reports also show that New York is not the most expensive place to rent in America, and offers a convenience that does not carry over into home ownership. Here are a few reasons why renting may be your best option:
1) Renting is less risky
There risk in renting is significantly less than in buying. You are not responsible for property taxes, which can be a hefty burden for homeowner.
Your landlord is responsible for all maintenance and repair costs. If an appliance stops working or your pipes start to leak, you do not have any financial responsibility to have these things fixed.
A 12-month lease provides more flexibility to move homes or change careers than a 30 year mortgage. If the area no long appeals to you, or you want to live closer to your job, renting allows you to do that without penalty.
If you find yourself out of a job, or are struggling to make ends meet, renting provides the option to downgrade into a more affordable living space at the end of their lease. If you are not rooted in this area due to family, career or community ties, renting might be a better option for you.
3) Financial safeguards
Property values go up and down, and while this may affect homeowners in a big way, it affects renters significantly less, if at all. If the real estate market takes a turn, you will already be prepared because you decided to rent instead of buy.
Additionally, the upfront costs alone of buying a home or apartment can run in tens of thousands of dollars. On top of that, you must keep aside funds for any emergency and maintenance costs. Before you buy a apartment, you typically need to have plenty of savings as well as a stable job and good credit. Renting can be a great option for you while you save up to buy in the future.
Renting provides solutions. You may not be able to afford the home you desire in the area, but have found an apartment within your price range, which allows you to live where you want on your own terms.
These are just a few options why renting apartments in NYC can be a good choice. There may be no immediate return on investment, but having financial peace of mind in the event of another market crash or negative housing trend makes the difference. For individuals who live between the city and other areas, renting makes more sense. The market is showing a decrease in demand due to the Euro exchange being less favorable to the US dollar, which will make having an apartment a viable option over purchasing a home.
There are a number of luxury apartments in NYC that offer the same amenities as a home, which can be beneficial if the price is right. When living in the city, buying in the area you desire may present a challenge, while apartments for rent are always plentiful, especially if you can afford it. The trend of renting in NYC is not new, and most people prefer buying homes further away from the city for price advantages and serenity. There’s nothing more rewarding than living in a luxury high-rise or apartment that keeps you close to the pulse of the city while giving you a dozen reasons why you call New York home.
The upswing in the housing market is very positive, but it may be wise to watch it a little while longer. Renting gives you that option while enjoying the perks that come with not having to worry about the upkeep of a home.