Is it smart to buy an apartment in NYC? This is a question many people have, whether they are renting in the city or just moving in. Unfortunately, the answer is not as simple. An appropriate answer to this question starts with the reason for the purchase. If someone is buying an apartment in NYC because they wish to put down roots here, it’s usually a smart purchase. However, they have to have enough money or afford a mortgage for it to be a financially viable decision.
But if you are young, change jobs frequently, or have an inconsistent income, renting might be the smarter thing to do. It gives you options to easily downgrade or upgrade.
Buying an apartment in the city from an investment perspective is smart in some areas but not a wise move in others. First of all, you would be limited to condos because most co-ops have strict rules against subletting. It’s changing, but co-op board approval of the tenant adds another layer to the process. Then, you have to look into factors like cap rates in different parts of the city that determine how much rental income you would generate based on how much you invested in the apartment.
Price appreciation for the apartment is a separate issue, and it’s a relevant factor for both investors and homeowners to consider. It also varies greatly in different parts of the city.
Finally, there are market factors like interest rates and property prices. If you find the perfect intersection of low interest rates and low prices, it’s definitely smart to buy an apartment. But at other times, it might not be the best decision.
So the most truthful answer to the question – Is it smart to buy an apartment in NYC? It depends. You have to understand your own situation as well as market realities to know when an NYC apartment is a smart purchase. A New York City broker can also help you find the right answer.
Also Read: Is NYC Real Estate A Smart Purchase?
