Choosing to rent or buy a home in New York City is one of the biggest financial decisions you'll ever make. So it requires careful consideration. Many articles extol the virtues of buying a home. But less has been written about the benefits of renting in New York City. So let's take a look at why someone might choose to rent instead of buying a place in the city.
It's More Than a Financial Decision
For most people, the question of whether to rent or buy a home goes beyond dollars and cents. There are other considerations as well, such as lifestyle, mobility and maintenance. These factors are discussed below. If you're only concerned about the cost, you can use a calculator like the one offered by The New York Times: http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html
It's Easier to Relocate When You Rent
Renting an apartment in New York City gives you more flexibility in terms of relocation. If, for example, you want to move to pursue a job opportunity or a different neighborhood, all you have to do is wait for your current lease to expire. Owning, on the other hand, presents more obstacles to relocation. When selling an apartment, you have to worry about finding the right buyer, negotiating the price, hoping the buyer's financing comes through, dealing with inspections and appraisals, etc. Renters can simply walk away when the lease is up.
Getting Into Your Preferred Neighborhood
For many New Yorkers, the neighborhood where they live is more important than whether they rent or own a home. Renting an apartment might give you more options than buying. For instance, purchasing a home in your number-one preferred neighborhood might be cost prohibitive, while renting is more realistic.
There's Less Maintenance to Worry About
Maintenance is another big benefit to renting. If you have problems with the electrical or plumbing system, for instance, you can simply call the supervisor. When owning a home, you'll either have to do the repairs yourself or pay out of pocket for a professional.
You Don't Have to Stress Over Home Price Fluctuations
Home prices in New York City have risen in recent years. But that doesn't mean they'll keep rising forever. We learned that lesson in 2007, when home prices in the area took a big tumble. For homeowners, property depreciation is a financial blow. Renters, on the other hand, don't have to worry about it as much. When you rent, you'll never end up owning a depreciating asset.
