Renting a New York Apartment? (You know, you probably could OWN for not much more...)
Here's an article from the Wall Street Journal that we hope you didn't miss: Renters Lose Edge on Homeowners. In lots of metro markets, mortgage payments cost just about as much as apartment rent. This is a new, and heartening, development. In recent years, some housing markets have seen ownership cost 60% more than renting. Soon, average mortgage payments could be a scant 14% higher than monthly rent. Owning is already the wiser move for most, but at 14%, it's a simple call... you can either keep throwing money away by renting, or tack on a measly 14% and reap the benefits of home ownership. Not only will you wind up keeping what you put into your home, your investment will only strengthen as markets return.What's 14%, anyway, compared to getting to hang onto your money? One way or another, home ownership is coming back. It goes to show that real estate never stays down forever. As long as markets are markets, home ownership will be one of the best long-term investments available. And here's the kicker... This is truer in New York City than anywhere else. It takes longer for down markets to affect NYC, and NYC usually recovers before anywhere else. But you already knew that. So why wait? Other gems from the article:
"Renting now costs just as much as buying," [Jason Schanta, independent contractor] said.
Others are finding that they could pay less on their mortgage than they would on rent.
A separate report by Moody's Economy.com also finds that home prices relative to rents are more in line with their historical relationship.
"Owning is looking much more attractive than it has in a long time," said Andrew McCulloch, a Green Street analyst.
Source: Renters Lose Edge on Homeowners