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When someone uses the word affordable, it’s important to understand that it doesn’t have a universal meaning. What seems affordable to one person may seem very expensive to someone else. This is often the case with affordable New York City apartments.
For people with experience in the NYC real estate market, their awareness of consistently increasing property values means they have specific criteria for finding a good deal. But for someone who is new to this market, they may be shocked when they see the prices of different properties.
Putting Affordable New York City Apartments in the Right Context
If you’re putting serious thought into buying in New York City instead of renting, it’s important to start this process with the right mindset. The first thing to realize is that New York City has the highest cost of living in the entire United States. The second important reality is not only is New York City an expensive place to live, but the competition for real estate is high.
The reason there’s so much competition for NYC real estate is due to the combination of its limited inventory and interest from investors all over the globe. As a result of New York City’s high cost of living and the high demand for real estate, the two best things buyers can do is be realistic about what they can afford and remain open to compromise.
Thinking About What’s Most Important
The worst situation that a New York City homeowner can get into is needing to sell their property prematurely. Because that’s the most common reason buyers lose money, it’s important to have the future in mind as you start looking for a place to purchase. Specifically, you want to be able to find a property that can grow with you for at least five years.
Since you want a place that provides future flexibility, you may not be able to get 100% of your wish list. That’s why we recommend buyers focusing on getting 80-90% of what matters to them most. By being open to a little compromise, you’ll ultimately end up in the best position.
What Buyers Need to Know About Affordable New York City Apartments
In New York City, buying an apartment is 22% cheaper than renting one. That being said, many new buyers overlook the full scope of costs associated with owning a home. Those costs include high property taxes and homeowner’s insurance. In many cases, buying a home also comes with the responsibility of paying common charges or maintenance fees.
In addition to understanding the full cost of an affordable New York City apartment, it’s also important to have your finances in order prior to buying. Not only do you want your credit to be in great shape, but you also need cash available for your down payment, closing costs and 6 months worth of a capital reserve.
Since there’s so much additional information that can help put you in the best possible position as a buyer in the New York City real estate market, we highly encourage you to download and read our free Home Buyers Guide.