Property Buyers Could Save More Money Than Renters
Some New York City renters are finding that buying property could actually save them money, and in this uncertain economy many people find that buying a home is a stable investment. NY1's Real Estate reporter Jill Urban filed the following report.
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Two years ago, Randi Wender rented a three-bedroom apartment. Now her lease is up, and with the rental market tighter and higher than ever, she crunched the numbers and found it’s financially better for her to buy.
"The rents are going up and we have found there are some good values out there in terms of apartments that we could buy," says Wender. "If we bought, we could save one-third the cost we were paying in rent."
Wender is not alone. Prudential Douglas Elliman Senior Vice President Victoria Shtainer says with rents so high and mortgage rates so low, many of her rental clients have decided it is time own.
"I am finding that my renters are being priced out of the rental market," says Shtainer. "So what they're doing is they're asking me to look for apartments to buy because mortgage rates are so low, and they re actually saving money by buying."
She says this could be a sign that the pendulum is swinging in the other direction in the "rent vs. buy" debate. Low inventory is only making the rental market more competitive, and on the sales side there are plenty of well-priced units out there.
With the economy the way it is, Shtainer says many clients are finding real estate to be a safe investment now.
"With the stock market being as volatile as it is, the world markets going up and down every day, I think people are finding real value in real estate again," says Shtainer. "They are able to put there money down, have a home and really feel like they are growing and their money is in safe place."
Buyers like Wender also like that owning a home offers tax breaks and an emotional sense of stability and security, because there is no need to worry about having to move again when a lease expires.
In the end, Wender found a comparable apartment to the one she has been renting, but now she will a little extra money in the bank each month, making it the ideal living situation.