Rent or Buy? The best choice is usually dictated by the situation. If you know that you are going to stay in a place for a short time, it doesn’t make sense to buy, then sell a property. Not only is buying and selling a time-consuming process, but it can also be very costly.
Renting, even for a short time, can also be pretty costly but is a better option short term, because getting in and out of a rent contract is a much simpler process than purchasing and selling. If you terminate the lease early, however, there may be a penalty, but your landlord may be willing to forego the penalty because he/she may be able to raise the rent for a new tenant.
Another reason for renting may be that while you have the best credit out there and the best job, you may never have put money aside for a downpayment and closing costs. Or you may not be in a strong financial position at this time, so renting may make sense until a more economically stable time.
Today, a trend in the rental market is to choose to live in a “luxury” apartment rather than buy. You pay a higher amount because of the many amenities, such as a health club, a swimming facility, a social room. Other convenient services like dry cleaning pickup and delivery and indoor parking are often included as well.
If you are renting and want to upgrade the property, you have to get permission from your landlord, who may not allow you to. Additionally, you will be possibly spending a lot of money on someone else’s property.
As we said in the beginning, the choice to rent or buy is often determined by your situation. In some areas, it’s a no brainer to buy and in some areas it is more challenging. I’m on the side of the idea of owning rather than renting, but if it is in the best interest of my client, I will definitely explain at length, the rental option. The strongest reason to rent is when you are not sure what your plans are or you have been relocated due to your job. If the job works out and you plan to stay, you can then look to buy, but if the job doesn’t work out and you aren’t going to stay, getting out of a lease will be much easier.
Rent or Buy? In my next blog, I will discuss all the reasons and advantages of buying rather than renting.
Mendy Lipsker
Mendy Realty Inc.
822 Montgomery St
Brooklyn, NY 11213
Phone: 646.662.5454
email: info@mendyrealty.com
website: mendyrealty.com
