The New York real estate is among the premium housing markets in the country, thanks to its status as the world’s cultural capital and one of the largest U.S economies. Since the market crisis of 2008, the real estate in NY has recovered at a faster rate compared to the other adversely affected cities. After years of steady rise in the home prices, real estate specialists are predicting a slowing market with more houses up for sale as compared to the buyers.
These speculations, are, however, based on market trends in certain neighborhoods and aren’t going to affect all the real-estate markets. The issue of whether to buy or rent a living space still remains a question for debate with many people making biased decisions based on their experiences and financial status.
The rental market, just like buying and selling is changing the real estate landscape with an estimated 65% of city residents renting their apartments in 2016- a 5% up from the 60% in 2006. A clear estimate of the future of these numbers isn’t obvious since the current housing trends and behavioral economics have a better command of the real estate market.
Weighing the Options- Renting vs. Buying
Homeownership is one of the American dreams, besides owning a pet, driving a nice car and of course- paying taxes. Most people, however, grow to the disappointment of how little their money can buy into the housing market. Depending on your financial situation, personal preferences and sometimes age; the issue of buying vs renting a house shouldn’t be too much of a worry.
Why Buy?
Buying a home comes with risks and extra costs such as taxes and maintenance, but every risk has a reward. If you have enough of the renewable resource, money- it means you can buy the home of your dream without having to draft loan applications. On the other hand, it could be a good investment, regardless of the money you have, provided you can raise the upfront. One advantage of buying a home is that the amount you invest every month helps in building equity. Buying at the right time would also mean the home will appreciate.
For a long time, buying a home has been associated with people who are ready to settle- meaning they are committed to living in a given neighborhood. Families with children ready to school would prefer buying a home in neighborhoods such as Queens, Bronx, and Brooklyn, etc. Such places have access to schools, recreational parks, privacy, and security.
Once you buy a home, it’s yours and you can decorate, renovate, rent or even sell. With the evolving market, every transaction has been facilitated. Selling a home in Bronx, NY has become a more simple process as there are companies that buy houses in Bronx for cash. This reduces the hassle of a traditional realtor and the delays due to tedious paperwork. Traditional realtors are infamous for their tensed negotiation procedures, and dragged sales that take months before listing your home on the market for buyers to see.
Why Rent?
When entering into the market, most people reference the disadvantages of buying a home to validate their reasons to rent- which makes sense. One of the reasons you may consider renting is the challenge of raising all the cash required to buy a home. Buying is cash-intensive; from the down payment, title insurance, appraisal, state transfer tax, to financing fees. Home maintenance is costly. On top of monthly mortgage & related fees, you’ll have paid for utilities, insurance, lawn care, and the homeowner’s association fees.
New York is probably one of the most expensive places to live in. It shouldn’t come as a surprise that certain parts of NY attract rental fees as high as an upfront fee for buying a home in other States. The pricey market both when renting and buying can be attributed to the costly land values, high construction cost, and probably the spending culture.