Home Buying in 10033>Question Details

Jovanna Feliz, Renter in New York, NY

Should I RENT or BUY?

Asked by Jovanna Feliz, New York, NY Fri Feb 7, 2014

I am a 22 year old prospective college student, recently employed with a full time decent paying job. I currently live in a rented room but because of my pay increase i was hoping to move into my own place. This is all new to me so i just need advice on whether I should invest in a home or rent an apartment. How do I go about getting professional, financial advice?

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Answers

5
Jovanna,
I make a living telling people to buy homes. In your case though, I'm hesitant. Once you buy you are tied to a location, a mortgage payment and are committed to a home. As a Prospective College Student, you may be better off waiting to buy until you complete your education and are confident where you want to settle.
Obviously, I don't know you, your plans or long term goals so take this under consideration and decide how it applies in your life. Best of luck with your job and education.
One last thought, with your additional income please avoid the temptation to go on a spending spree. Save all you can, whether for school or future purchases you can pay cash for rather than have to go into debt.
2 votes Thank Flag Link Fri Feb 7, 2014
A decision only you can make and you may already know the answer to your question as well as the pros/cons to both situations. To buy, or rent is really all about 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.
1 vote Thank Flag Link Sat Feb 8, 2014
Hi Jovanna! I understand your situation. I was in or shoes not too long ago as well. I would need to chat with you for a little to find out what your goals are and your plans to have them line up with your real estate goals. There is also something that can qualify you to get an awesome deal being you are young with not much saved up I am guessing. Shoot me an email if you would like nardeen@rapartnersny.com

Good luck and I love the young ambition!
0 votes Thank Flag Link Mon Feb 10, 2014
Hi Jovanna. You have three very compelling answers below and they all make sense. Heed them well. As you've mentioned, you're recently employed and the pay is , as you mentioned, decent. Whatever that really means, I don't know. You should also look at your current situation. A prospective College student (ambiguous). That would be an expense if you decide to matriculate for a degree qualifying course load as opposed to taking a class hear and there.

There is also the question of how much in liquid assets you have on hand and can you refrain from allowing it to burn a hole in your pants. Remember, most downpayments will be at least 20%. Keep in mind you've been recently employed. To me, that means you're on the job less than one year.

It's not a bad idea to hold off, maybe consolidate your financial position, Safe like crazy, pay off any debt and make sure your credit score is at least around 740 and up. You can get a free credit report from each of the three credit bureaus at no charge, though they can charge a nominal fee for giving you a FICO number. You'll feel great not owing and having money in the Bank. Manhattan property is expensive and monthly carry charges will also be high. You're in a fantastic position for a young person with their entire life ahead of them. The choices you make will stay with you a lifetime. I wish you every good thing as you move forward.
0 votes Thank Flag Link Mon Feb 10, 2014
First see if you can afford it. Get pre-qualified by a lender then go from there.
0 votes Thank Flag Link Sat Feb 8, 2014
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