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Buying a home anywhere in the United States is a significant commitment. But due to the unique nature of New York’s real estate market, it’s an even bigger decision here. If you’ve started looking at New York City real estate for sale, you probably have a lot of questions of what it’s like to buy a home in this particular market.
Renting vs. Buying – The Bottom Line
If you already live in New York City and are happy with the apartment you’re renting, you may be wondering what you will get out of going through the often very challenging process of finding a home to purchase.
The simple answer is if you’re in a financial position to buy a home, it’s cheaper than renting. According to a 2014 report published in Forbes, buying in the New York City area is 22% cheaper than renting.
While you can save over time by owning a home instead of renting one, it’s important to be aware of the additional cost of purchasing a piece of New York City real estate for sale. Once you’re a homeowner, you will be responsible for paying New York City property taxes (which are some of the highest in the US) and homeowners insurance. Maintenance fees or common charges are also very common costs that NYC homeowners are responsible for paying.
Should You Buy New or Resale?
Although many people assume that they’re going to purchase a resale, there are quite a few advantages to buying new. Some of those advantages include energy efficient appliances, green buildings, fire-retardant floor covering, high-tech friendly, lower replacement costs and custom financing options.
5 Questions You Need to Answer Before Committing to Buy
Based on our extensive experience working with a wide range of homebuyers, we’ve come up with a list of five questions we believe everyone should ask themselves before getting serious about buying a piece of New York City real estate for sale. The five questions are:
- Are you prepared to maintain and repair an apartment or home?
- Are you willing to stay in the same apartment or home for at least five to ten years?
- Do you have a realistic idea of the type of apartment or home and amount of space you’ll need for the next five to ten years?
- Are you relatively certain your financial situation will remain stable or improve over the next several years?
- Are you a disciplined saver who can build up an account for emergency repairs?
Since these are questions you should think about detail, we encourage you to print them out, so you’ll be able to ponder them for a few days.
Learn More About Buying New York City Real Estate for Sale
As you can see from all the information we covered above, there’s a lot that goes into making a real estate purchase in New York City. If you want to learn even more about the ins and outs of the NYC real estate market, we highly encourage you to download our free and comprehensive Home Buyers Handbook