Ask A Native New Yorker: Should I Rent Or Buy? (Holland: 2014, rental)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Generally buying is a better option in the long run. Renting is putting money into something and not getting anything in return. Although that article was quite interesting.
I think the NYC housing market is overinflated and is only so because the Fed is pumping an 85 billion subsidy into the financial system of the United States. This stimulus flows largely to the financial sectors of which NYC is premiere.
Thus during this protracted recession, New York is getting off easy with the constant inflow of new "bailout money" each month.
This money generates upward pressure on the cost of housing, both rental and purchase, but it cannot go on forever.
If you accept my premise that the New York market will take a large hit if and when the Fed stops sending money across the Holland Tunnel in wheelbarrows and the cost of housing falls you must address the unassailable fact: you can get out of a rental without a huge monetary hit. Not so with ownership.
We saw almost nationwide (except for the chosen few subsidized areas) when the era of cheap mortgages of 1993-2005 collapsed, so did the prices of homes and the newest buyers were slaughtered.
So, for most of the country is would weight the buy-lease decision in favor of buy, but most emphatically NOT for New York City.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.