Buying an Apartment in Manhattan – Why Buy vs. Rent?

Many people living in Manhattan choose to rent apartments because they think that they cannot afford to purchase real estate. While it is true that buying an apartment in Manhattan requires plenty of thought and planning, you might be surprised to learn about the advantages that owning your own apartment can offer.

The Difference between Rent and Mortgage Payments

Renting an apartment simply pays for a place to live for the term of the lease. Buying an apartment, however, is a long-term investment. When you buy an apartment, though, you will typically get a mortgage that requires monthly payments. Paying your landlord and paying your lender might feel the same to your wallet, but over the long-term you will notice a significant difference. Eventually you can pay off the mortgage on your apartment. In addition you can choose to sell your apartment when the time is rent and the market value has increased earning you a profit on your property.

Buying an Apartment Offers Consistent Monthly Payments

The monthly payments on a fixed-rate mortgage typically stays the same from year to year and is much more consistent than rental prices.

This offers a hidden benefit that many rents don not think about: as you progress in your career and earn more money, your monthly mortgage payment will take up less and less of your income. Eventually the payments will feel much easier to make. Renting, however, can keep pace with your income growth, so you never get ahead.

Taking Advantage of Growing Real Estate Prices

Growing real estate prices in Manhattan begin to look different when you own property. While renters cringe at the idea because it means higher monthly payments, property owners have the satisfaction of seeing their investment grow in value.

While it depends on where your apartment is located, there is a good chance that it will accumulate more value over time. Eventually you can choose to sell the property at a higher price than you paid.