Home Buying in New York>Question Details

jm854, Home Buyer in New York, NY

Rent in New York or time to buy?

Asked by jm854, New York, NY Thu Nov 7, 2013

I'm curious whether I should continue renting in NYC or if now is a good time to buy ? The market has been strong - if I jump in now will I get burned in a market correction? Curious what short/medium views of NYC property market are and the pros/cons of renting or buying today. Thank you!

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Janet M. Nation’s answer
The market is correcting itself now. The best time to buy is when you can afford to and when it meets your need. You can't time the market, just like you can't time death unfortunately.
0 votes Thank Flag Link Sat Nov 9, 2013
To continue renting or buying is a decision only you can make; to consider costs and lifestyle. Costs—financing v. moving-in, mortgage v. rent, repairs v. upkeep. Lifestyle—stability v. mobility, predictability v. flexibility, equity v. freedom from debt. It used to be all about equity. Now, there are other variables to consider in the balancing of the buy/rent equation--you decide.
1 vote Thank Flag Link Fri Nov 8, 2013
Well, most brokers will be quick to tell you that now is an excellent time to buy--prices are strong and owning in NYC is definitely a privilege. Many people who were previous renters have turned to buying due to the steep rent increases. However, there are just as many great renting opportunities in this market as there are purchasing a home. Owning comes with greater responsibility, but to answer your question, yes, now is a good time to buy (how long have you been renting and how much do you spend per month on rent? Are you a cash buyer or putting down a down payment?). It all really depends on your current situation. If you'd like to discuss more, feel free to contact me with any questions, I'd be happy to help and answer

Best,

Eric Rohe
Citi Habitats
400 E 84 St
201-328-2758
Erohe@citihabitats.com
1 vote Thank Flag Link Thu Nov 7, 2013
My crystal ball says interest rates are going to go up on 1/13/14 at 11am – give or take an hour or two. That is the first scheduled rate change after the mortgage industry hits the Dodd/Frank iceberg. Add to my disclaimer below that I am not an economist, just a worn out old loan officer that has been watching interest rates for xxxxx years.

So I wouldn’t be in any hurry, take all day if you want, but get a property under contract before sundown. Play with some loan amounts and see what it will cost you if the rate goes up 2 points, 3 points or heck, say 5 points higher than they are today, that last one would put them back in the average range if you look back long term. It is a very big pile of money! Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Fri Nov 8, 2013
Great answer!
Flag Fri Nov 8, 2013
Please call me to discuss. My name is Priyta and I can be reached at 917-499-6500. Thank you and good luck.
0 votes Thank Flag Link Fri Nov 8, 2013
Mortgage rates are still relatively low so it is still a good time to buy for that reason.

The debate of rent vs buy in my opinion is dependent on area of purchase, type of ownership (coop or condo) and amount of inventory for the price point your searching in.

The popular areas of Brooklyn have low inventory which is driving prices up and offers above asking. In Manhattan, coop prices remain to be affordable and condo prices are rising. In LIC/Astoria in Queens, condo prices have also gone up and continue to do so but coops remain the same.

It is always good to start with writing a draft financial statement, get an understanding of how much liquid assests you have for downpayment, closing costs and for monthly maintenace or common charges after. Like Joseph mentioned, consult with a mortgage lender to see how much borrowing power you have.

Seasonally, I've always thought Nov-March are good times to go look for deals as there is less buyer competition (bidding wars).

Here's an article back in the summer from Trulia about rent vs buy:
http://trends.truliablog.com/2013/09/rent-vs-buy-summer-2013/

I hope this helps. If you need further info, please feel free to give me a call or shoot me an email.

Karen Cheung
917.334.9544
kcheung@citihabitats.com
0 votes Thank Flag Link Thu Nov 7, 2013
The inventory on rentals has massively shrunk in the past few years and the supply of new rentals is not expected to swell anytime soon. As a result rental market is now seeing a frenzy of demand which can mean only one thing - increasing rent in the future. If you have enough money saved up to put down on a purchase and can lock in a decent interest rate, I would say start thinking about purchasing. One thing is certain, rent will keep going up no matter which way sales market goes.

Shalabh Sanger
shalabh@spiregroupny.com
0 votes Thank Flag Link Thu Nov 7, 2013
Hi, I think is best time for you to seat with your broker and find out the real answer to your question. Andrei andrei@spiregroupny.com
0 votes Thank Flag Link Thu Nov 7, 2013
One aspect of purchasing is price. Not knowing what you pay for rent, or your income/assets, it's difficult to know how much property you can purchase. Your best bet is to go see a mortgage professional. Start with the guy in the Bank you do your business in.

You'll never be able to "time" the market. It's too changable. The things to be aware of are interest rates which determine not only what your monthly debt service is but it also controls how much home you can actually buy. Rates are still at an all time low. As such, they make buying a very attractive thought and of course Mortgage interest is deductable.

The pro is that you are paying down on your property instead of paying someone else's mortgage, which is the con of renting. the immediate view is the market will remain strong. That's not a big jump as Manhattan real estate has a limited supply. This drives prices and good properties always sell quickly. If you are ready, why not go for it? Good luck.
0 votes Thank Flag Link Thu Nov 7, 2013
Hi,

Why pay someone else's mortgage in this buyers' market. Please feel free to contact me before interest rates and prices rises. dbowrin@bondnewyork.com
0 votes Thank Flag Link Thu Nov 7, 2013
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