Buying a property vs Renting a property

If you are deciding whether you are to rent on a property or to really purchase it, you should come to think of some important factors first. The things you want in the property or the amount you have in your bank account are just some of these factors. With years of experience in this field, a realtor can help you every step of the way.

Privacy and comfort

When you decide to purchase a real estate property, you have to take note that it is a long-term financial commitment. You shouldn’t rush things if you are not able to keep up with the payments every month.  People choose to live in New York City because of employment, others do because of family reasons, and some just want to have a change in their way of life. Buying your own property is more time consuming than just having to rent in an available apartment.
If a person buys a house, of course, they will settle in and make it their home. For sure, everyone wants to stay in a home where having a complete privacy is not an issue. The owner would also like to have a property where they can renovate and modify at their own comfort. Renovations like upgrading the kitchen, landscaping, or remodeling the living room. Ideas they have in mind can easily be made to the property since they own it and they don’t have to follow any rules from the building or a corporation.

Equity Creation

Having your own New York apartment is not just having a place where you can dwell and call home, it also comes with it a lot of huge financial advantages. Having your own apartment signifies that the owner doesn’t have any financial obligations regarding rent. Also, if they decide to move to another place, they can have that apartment in the market available for rent – a new source of income. Having your OWN property has a significant number of benefits that’s why many tend to have this option. Furthermore, if you purchased a house in the 80’s, the price would probably increase by half if you decide to sell it today. Although this is not applicable to all buildings, it does not make owning a property any less fulfilling.

Tax Benefits

If you can take mortgage interests and building taxes from you income statements, then you are having tax benefits from owning a New York City apartment. However, people who don’t have their own property and rent from others do not undergo such benefits. A significant amount of money is saved from having these deductions and can be used in some other investment. Take note, you’ll have benefits every month.
But we cannot blame people if they choose to rent. Even to the fact that you get financial benefits from having your own property, you will need a large amount of capital to be able to own one. And that’s what other people lack. If you want to increase your knowledge about benefits from having your own property, ask an accountant or other professional for help.

A well-managed property

Condominiums and co-operative buildings are built with the highest standard of quality compared to buildings that are built just for renting. They are usually built with better luxurious amenities, the best finishes, bigger living spaces, and with latest appliances. Furthermore, the owner of the condo or co-op building can decide whether to be involved in managing the building.

Financial commitment

On an average New York apartment, a one bedroom property usually costs $750,000. And the down payment required for the said property is probably 20%. This is the reason why people cannot purchase their own building. The down payment is significantly big. That’s not all, other fees are also required such as attorney’s fee, closing costs, and insurance. And these fees are quite expensive. A person who wants to have his own property should have a significant amount in his bank account to be able to pay mortgage payments and other financial expenses. There are also other requirements before you can do your purchase. You will need to be approved by the Board of Directors from the cooperative or condominium association, credit check, and previous rentals or owner documentations.

Long-term obligation

Another reason why people cannot push through with purchasing a New York City apartment is the long-term commitment needed in paying for the real estate. This long-term financial obligation can greatly change the lifestyle of the buyer unless you have a lot in your bank account.

Dealing with board of Directors

People who are looking to purchase from a condo or a co-operative building must first be approved by a Board of Directors or the association managing the building. For condo boards, there are certain rules to follow but buyers may be able to deal with them. But as for the co-operative buildings Board of Directors, things seem to be more complicated. They are very strict and the buyer will need to pass a lot of requirements.

Lesser stress when applying

If you want to live in New York City, renting is the quickest and easiest way. You don’t have to spend a lot of time or looking for a finance to be able to pay down payment for a property. Legal documentations are still needed when renting but there is no long-term financial commitment. The process is also stress-free since there are only a number of steps to follow. People coming to the “The Big Apple” are satisfied renting since they are only there because of a job, or they are looking for work, or they just want to experience how good life is at New York. Also, renting prevents you from rushing in to decisions. It helps you get to know New York first, understand it, helping you decide if you should purchase a property or not.

Cheap and easy

Renting an apartment is for sure the simplest way to stay in New York. You don’t need to pay for a down payment, mortgage, insurance, and other expenses. You also need not save for building maintenance or repair, since you don’t own it. The only things you’ll have to worry is to pay monthly rent and if you hired an agent, a brokerage fee.

Cannot establish Equity

One disappointment when renting is that no matter how long you’ve stayed in a particular apartment, you are not establishing equity or ownership and the money you’ve spent for the rental is not tax deductible. These benefits would have saved you a certain amount of money that can be used in the future.

Rental buildings are of low quality

Since the owners of rental buildings do not actually live in the same building, chances are the building is of low quality. Amenities and spaces are not fully-equipped compared to condos and co-op buildings. Condos and co-op buildings are well-maintained and have better facilities since some of the owners (if not all) lives in the same building.

Stick with what the building offers

If you are looking to rent, you must ready yourself for whatever the building has to offer. You’ll have to accept whatever is available. An unmanaged building may have leaking roofs, no elevator, dirty staircases, and sometimes, a very unfit room to live in. Landlords allow renters to renovate or remodel the room but the renters will have to pay for everything. And the costs for remodeling are quite expensive.

Landlords

This is the one thing you’ll have to take notice when renting — getting along with a Landlord.
A nice landlord will make you stay for a long time while a terrible one will definitely make your stay quite short. You’ll definitely regret why you ever signed the contract. If you want ever want to know the attitude of the landlord, schedule a meeting first before you try to close the lease. Get to know his attitude towards tenants, and evaluate his demeanor. In this way, you will know when to push through or when to back out.
An affordable, adorable apartment run by a terrible landlord is definitely not a good choice.

 

Veronica Barfield
Veronica Barfield is a writer who is keen in the real estate industry. She also considers herself as a novelist, with her fondness of reading books especially mystery and investigative novels. She longs to travel the world and starts checking out local places for her past time. She enjoys most of her time growing bonsai trees as her own hobby. She also had a beautiful garden which is surrounded by beautiful flowers. It is where she writes all her books during her free time.  Right now, she is editing some eBooks on niches real estate and mortgage loans.

Read more at www.housevaluestore.com