For every house hunter, the age old question that can be tough to answer is, "buy or rent?" This is very true when you are in New York, especially in places like Manhattan. If you find yourself asking the same question then you are not alone.
According to The New York Times, in 2012 half of New Yorkers are said to have spent at least 30 percent of their income on rent as reported by the New York University Furman Center. The publication advises that as costly as it may seem, buying an apartment could be a better option. For one, rent is not an investment and as Joseph Rand, a managing partner at Better Homes and Gardens Rand Realty, said, "Instead of building equity in your own home, you pay off someone else's mortgage. After 30 years, you have nothing to show for those monthly payments."
So even if living in a rent-regulated apartment can assure you that you are protected from sudden steep rises in rent and for as long as you follow rent guidelines you will not be evicted, the bottom line is that you have spent money without building equity.
Although, generally speaking, owning a home is always better than renting, there are instances where rent is a sound choice. According to CNBC, renting is a better option when you have limited funds of when you do not have the money for down payment. Another reason is employment. When your job requires you to travel a lot or transfer from one place to another frequently, then renting is better. Also, if you don't feel secure with your job just yet or still feeling unsure about the future in your current employment, according to CNBC, renting is better at the moment.
It is always important to examine the situation before making that huge financial decision. Owning a house is a big financial responsibility but it is an investment. On the other hand, renting gives freedom of mobility and though it does not build equity it also have advantages.
