When individuals decide to live in New York City, they must make a life-changing decision. Should they buy or rent a home in the Big Apple? There is not a defining answer to this question. Sometimes, renting is the right solution but buying is the best choice in certain circumstances. Both options, renting and buying, have pros and cons.

When home owners pay monthly mortgage payments, they are investing in their property. When individuals pay rent, they are helping the landlord grow his investment.

As home owners, individuals can put their property to work for them, even if they move to another location. They can become landlords, rent out their home, and grow their investment.

Growth can never be guaranteed in the real estate market but soaring prices are a distinct possibility. Home owners who purchased New York City real estate in the 1970s sold their homes for huge profits (sale prices ? seven figures and more) in the latter 1990s.

Owning a NYC apartment means that home owners can deduct mortgage interest and property taxes from their income statements. A significant amount of money can be saved and reinvested from these tax gains. The benefits result in a sizeable reduction in monthly expenses. In addition, home owners can yield a large capital gain for the resale of a New York property.

Buying a home involves a long term commitment. A buyer must be ready for that commitment. Buying a home can bring big rewards such as home ownership, equity, and security. Yet a buyer must be willing to focus on the long term.

It requires more time to buy a home than rent an apartment in New York City.

Renters do not have to tie down their capital like home owners who purchase property but earn no income from it.

Even a one-bedroom NYC apartment has an average cost $700,000. 20% of the purchase price is required as a down payment. Buying a home involves closing costs, attorney's fees, and insurance charges. It is advisable to have a six month reserve fund in place for mortgage payments and common expenses.

Even if a home is in perfect condition, home owners want to customize their space to suit their preferences regarding privacy and comfort. Renovation can be fun and rewarding but improvements come at a cost. Home owners must be willing to put in the time, money, and effort to complete the changes.

The final decision must suit the personal needs and will be influenced by lifestyle, finances, and personal preferences. Ultimately, by being informed and seeking the help of industry experts, everyone can find the solution which works best for them.

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Article Submitted By: Elika Gea4
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