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Buying is not ALWAYS better. It's just a matter of numbers; carrying costs of renting v. owning.
For example, for someone in a rent controlled apartment in NYC, renting is most certainly better. Same goes for those who won an affordable housing lottery. In fact, it's not even close.
Buying is not ALWAYS better. It's just a matter of numbers; carrying costs of renting v. owning.
For example, for someone in a rent controlled apartment in NYC, renting is most certainly better. Same goes for those who won an affordable housing lottery. In fact, it's not even close.
Not necessarily, since then they won't have the property to pass on. Or the option to sell the house and move.
Not necessarily, since then they won't have the property to pass on. Or the option to sell the house and move.
Passing on a property doesn't have anything to do with the economics of owning v. renting and selling a house doesn't guarantee a profit above inflation.
The cash that rent controlled/affordable housing tenants save v. owning a home can be passed on as well.
There are situations where renting is more optimal than owning on a pure economic basis.
Buying is not ALWAYS better. It's just a matter of numbers; carrying costs of renting v. owning.
For example, for someone in a rent controlled apartment in NYC, renting is most certainly better. Same goes for those who won an affordable housing lottery. In fact, it's not even close.
Exactly!
Those in RC or RS units avoid a number of issues that can befall market rate renters. They know what their rent will increase in advance for instance. Also absent violations of their lease (and sometimes not even then), they cannot be removed except under limited number of circumstances. Otherwise every year or two they by law are offered a renewal lease (RS only, RC tenants have no leases).
This being said the main pitfall of rent controlled or whatever tenants is that by not owing they are deprived of one of the most used retirement asset in this country, owning a home. Unless they save and invest accordingly they can (and many do) find themselves in senior or elderly age with little to no financial resources to fall back upon. Worse if they cannot pay the rent sooner or later they will be evicted.
Have said this before; those middle-aged to old persons you see digging through garbage bags in front of shops often are *not* homeless. Rather after rent, Medicare and other expenses are paid each month they have little to very near nil to live upon. For many the last week or so of each month before their next SS check comes is often very lean.
"New York’s population growth is five years ahead of projections, and the city is experiencing record job growth, renters aren’t seeing tons of relief other than more concessions. The size of concession this quarter are 1.2 months of free rent or equivalent, which is unchanged from last year."
"The average sales price for a Brooklyn condo is now $1.145 million, a whopping 24 percent higher than last year, and the median price is $812,008, a 6.8 percent jump. For co-ops, the median price comes in at $428,000, and for one- to three-family homes it’s $830,000. The average sale price for all luxury property (at the top 10 percent of the market) is $3.099 million, nearly 25 percent higher than last year. Much of the high prices, Miller says, are from closings happening at new developments this past quarter."
I am not surprised. I have watched the real estate in my neighborhood for years. It has been fairly stable with the coops but prices on coops have really shot up in the past year or two. Good for me, because I bought for much lower than what's been selling but bad because I won't be able to afford a two bedroom coop after this. Houses by me have been increasing quite a bit (and steadily) for years so those prices I'm not surprised about either.
We don't make a lot so I will not be surprised if we move eventually.
Buying is not ALWAYS better. It's just a matter of numbers; carrying costs of renting v. owning.
For example, for someone in a rent controlled apartment in NYC, renting is most certainly better. Same goes for those who won an affordable housing lottery. In fact, it's not even close.
How many people are in rent controlled apartments or are lucky enough to get one. Plus all the neglect landlords put onto rent controlled apartments is unwanted by most people. Then you have lack of space, people want to have families. I couldn't live in a 2 bedroom 600 sq ft apartment for the rest of my life especially with children in the picture.
If you are forever single or don't plan on having kids, or at an age where the kids are grown and out the house. renting may be the best option, it depends on a person's financial history and goals for their future.
When i retire, i want to buy a condo and not have to worry about maintenance. Hopefully, my home will be worth a lot more when I sell, and a 2 bedroom condo will be feasible.
How many people are in rent controlled apartments or are lucky enough to get one. Plus all the neglect landlords put onto rent controlled apartments is unwanted by most people. Then you have lack of space, people want to have families. I couldn't live in a 2 bedroom 600 sq ft apartment for the rest of my life especially with children in the picture.
If you are forever single or don't plan on having kids, or at an age where the kids are grown and out the house. renting may be the best option, it depends on a person's financial history and goals for their future.
When i retire, i want to buy a condo and not have to worry about maintenance. Hopefully, my home will be worth a lot more when I sell, and a 2 bedroom condo will be feasible.
Agreed, having a family in a city apartment is not ideal. No worries about parking, excessive noise, generally better schools, bigger living space with a backyard, less encounters with beggars and homeless in the streets, etc. Quality of life issues, not everything is dollars and cents.
Those in RC or RS units avoid a number of issues that can befall market rate renters. They know what their rent will increase in advance for instance. Also absent violations of their lease (and sometimes not even then), they cannot be removed except under limited number of circumstances. Otherwise every year or two they by law are offered a renewal lease (RS only, RC tenants have no leases).
This being said the main pitfall of rent controlled or whatever tenants is that by not owing they are deprived of one of the most used retirement asset in this country, owning a home. Unless they save and invest accordingly they can (and many do) find themselves in senior or elderly age with little to no financial resources to fall back upon. Worse if they cannot pay the rent sooner or later they will be evicted.
Have said this before; those middle-aged to old persons you see digging through garbage bags in front of shops often are *not* homeless. Rather after rent, Medicare and other expenses are paid each month they have little to very near nil to live upon. For many the last week or so of each month before their next SS check comes is often very lean.
Quote:
Originally Posted by cheyenne2134
How many people are in rent controlled apartments or are lucky enough to get one. Plus all the neglect landlords put onto rent controlled apartments is unwanted by most people. Then you have lack of space, people want to have families. I couldn't live in a 2 bedroom 600 sq ft apartment for the rest of my life especially with children in the picture.
If you are forever single or don't plan on having kids, or at an age where the kids are grown and out the house. renting may be the best option, it depends on a person's financial history and goals for their future.
When i retire, i want to buy a condo and not have to worry about maintenance. Hopefully, my home will be worth a lot more when I sell, and a 2 bedroom condo will be feasible.
I don't disagree with both of you in a broad sense but there are many NY'ers with favorable renting conditions. I don't have that big a circle of friends and I know of more than a handful.
It's a fact that nearly half of the apartment stock in NYC is either rent controlled, stabilized, or 80/20.
I know of people renting a 1 bedroom near Union square for $1600 and a 4 bedroom in Washington Heights for $900 (both inherited and rent controlled). These folks aren't poor. Their household incomes are well over $100k.
I have an acquaintance who has a 3 bedroom that she won through the housing lottery in a luxury building paying under $1,000 per month. Her husband and her are making way more money now.
NYC rents are ridiculous for this very reason. Not only is half the rentable housing stock not market rate but the market is very distorted.
Agreed, having a family in a city apartment is not ideal. No worries about parking, excessive noise, generally better schools, bigger living space with a backyard, less encounters with beggars and homeless in the streets, etc. Quality of life issues, not everything is dollars and cents.
Except for the hundreds of thousands of NYC families that do live in NYC apartments? Who do you think lives in apartments? Only singles and senior citizens?
Except for the hundreds of thousands of NYC families that do live in NYC apartments? Who do you think lives in apartments? Only singles and senior citizens?
If that's all you can afford, then it's what it is. Never said its not possible, but its hardly ideal. People have to live somewhere. Just because a family is living in an aprtment means that theyre content there. If money wasn't an issue, you would see a lot less families with kids in the city.
A house requires you to be in a good financial position, to be able to put down that large down payment and to be approved for a large mortgage....not everyone is in that position. For those, their option would be to rent.
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