To Rent or Buy: That is The Question

To Rent or Buy: That Is the Question

Living in NYC is an adventure and renting or buying take you down different paths on the road map. Which will serve you and your bank account better?

Let’s take a look at the benefits of renting vs. buying and figure out what you can afford without wanting to jump in the Hudson.

Cash and Time: 2 Main Investments

If you decide to buy, there are a few costs off the bat that you know you’ll have to cover every month—mortgage, common charges (condo) or maintenance (co-op) fees, and taxes. Some other costs to consider are: upkeep and repairs for your unit, utilities, Wi-Fi, streaming services and/or cable, and the money you’ll want to spend on all of the fun things that NYC has to offer like *insert NYC bucket list daydreams here*. Time is an investment that sometimes gets lost in the shuffle. How long do you anticipate being a resident of New York City? If you’re in it for the long haul—a concept called the ‘tipping point’ is something to keep in mind. The tipping point is similar to a break-even point—after how many years of owning a home does it make more sense money-wise to buy than to rent. In NYC, this point averages out to about 5.6 years, but varies by neighborhood. So if you’re planning on staying for less time than that—renting is definitely a safe choice. If you’re thinking you would like to make and keep a life here—buying is a real option.