It’s a well-known fact that rent in New York City comes at a high price. Though signing a lease has many benefits like leaving you off the hook for property taxes and repairs, buying also offers many incentives. Living near all the excitement and uncommon professional opportunities make growing roots here worth every penny. There are also financial and emotional benefits to becoming a homeowner in New York. So, when is the right time to start thinking of buying in NYC?
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1. When you’re sure you want to stick around.
Renting is more expensive than a mortgage. Overall, spending less per month on a place to live is ideal. You’ll also get a tax break on the interest you pay toward your mortgage.
If you’re certain you want to stay in NYC and you’re financially ready, it may be time to switch to buying. After all, it makes sense to pay less for the same kind of property, especially when you know you want to make New York your permanent home.
Mortgages stay the same year after year when they’re fixed. Therefore, in a few years, what you’re paying for your mortgage will be “frozen in time” compared to the rising rents of properties similar to yours.
2. When you can get a good ROI.
When your purchase will give you a decent return on your investment (ROI), buying pays off financially. Whether you’re looking for your forever home or are an investor looking for another rental, you need to make sure the property in question will profit you in the long run. To make sure you’re making the right purchase, confirm that it satisfies these qualifications:
- Is it in an area that has seen a steady increase in value?
- Is it in a location that is appealing to others. For instance, it is convenient to amenities like the subway/public transit and local shopping?
- Does it have evergreen appeal in case you plan to resell?
- Is it in good condition or does it need a lot of TLC?
A property that is in great condition is generally appealing, and likely to grow in value due to its location and amenities is one to snag. On the other hand, any transaction where you’re losing money isn’t one to pursue. The best way to maximize your chances of finding the right place is to get an agent to scout out the best properties for your needs.
3. When you want to be reigning monarch of your own castle.
If you’re not happy with renting for a variety of reasons, whether it’s the lack of freedom to renovate or the intrusive inspections, becoming a homeowner can simply make you happier.
Owning your own property will give you a higher level of control in how you run your home. You also don’t have to continually renew leases and abide by certain terms (like pet restrictions, etc). Overall, if you’d be happier being the #1 person in charge of your estate, call a realtor and see what your buying options are.
Buying a home has many benefits beyond the ones we listed. If you’re interested in buying a home in NYC, contact us.