Downsides of buying a house in NYC
New York is definitely one of the most beautiful cities in the world, and it is perfectly understandable that you want to become a part of it. This is an extremely busy area, so better schedule your move with reputable Inwood movers as soon as possible. Maybe you are also thinking about buying a house in NYC. Historic details, vintage staircase, garden, several bedrooms, and bathrooms really sound dreamy. Especially in a crowded city like New York, living in a house is really something else. However, while townhouses can offer far more space and flexibility than living in an apartment, they also come with a lot of responsibilities. It’s not all rainbows and butterflies, so better think twice before you purchase a house in a Big Apple. Here are some downsides of buying a house in NYC.
You would be a minority
Most of the residents for NYC, and especially of Manhattan are renters. Hence, the court system here is more friendly to tenants than to landlords. In case you buy a house and start renting it, you better do a good screening of tenants. Trust me, you don’t want to deal with problematic tenants. Because if it comes to eviction, it would take between 6 months to 9 months, while in other cities it takes a month.
Prices are hitting the sky
This really depends on your budget and your perspective, but prices are extremely high. For example, for a cost of New York City house with closing costs, you could get several houses in Texas or North Carolina. No, this is not exaggerating, it’s simple math. Hence, if you want to buy a house here, better work out your budget. Because one of the downsides of buying a house in NYC is definitely a price.
Everything is more expensive
Living costs are higher overall in NYC cities. For example, labor cost is much more expensive than the cost of material for renovation projects and more expensive than in other major cities. This has to do with permits, licensure requirements, insurance, approvals, parking costs, and limited use of the elevator.
Actually, whether you are buying or renting out, you will need to submit a board package with various fees included. The thing is, in NYC and particularly Manhattan, everything is at your disposal. From best food options to the top-rate packing services Manhattan. But the problem is that everything is also more expensive than elsewhere and that is one of the downsides of buying a house in NYC.
Your money could be invested smarter elsewhere
The fact is that renting is not cheap either when living in NYC. But there is still a difference. Besides, buying a house ties up a lot of money. You need to pay the down payment, the closing costs, the mortgage, and maintenance fees. Furthermore, people who buy a property have to lay out month-to-month payments instead of taking that same amount of money and investing it somewhere. Maybe in the stock market, or in a mutual fund, or a retirement account.
Financial consultants say that that is the money that is not making money for you on the market. Real estate prices in Big Apple hold up well, but returns will probably not match up to the stock market. Therefore, you should maybe think about investing your money instead of buying a house.
Buying a house in NYC requires a long term plan
Buying a house in NYC or anywhere requires a long-term mindset, emotionally and financially. This means you should know where you see yourself in 10 years. Do you know that? Also, you need to have in mind that home ownership in NYC, can come with unexpected expenses as well as other problems from time to time. This means that you need to have a well-prepared budget and resilient mindset. You need to be immune to this bad news because you are confident that the house will increase in value consistently over time. These are definitely some of the downsides of buying a house in NYC.
Owning a house in NYC means that you have to deal with neighbors too. And some of them will be rude or nosy. Some of them may even cause you some severe problems. You could end up hiring attorney for your self-interest and defend against injustices.
Repairs, repairs, repairs
When buying a house in NYC, it’s always a good idea to make good research. This way, you could find out if the house’s costliest components were most recently repaired or replaced. The most expensive repair bills for houses in NYC typically relate to boilers and heating systems, facade work and the roof. Buying a house which has recently upgraded some or all of these components will help minimize the risk.
Not all houses in NYC are equally good investments
You are making your future profit in real estate when you buy, not when you sell. In NYC, just like in any major city, not all houses are equally good investments. Buying instead of renting only makes sense if the house you decide to buy has attractive fundamentals. As a potential buyer, you should pay close attention to price per square foot, carrying costs as well as the cost of repairs.
Downsides of buying a house in NYC
As you can see, downsides or buying a house in NYC are many, but that doesn’t mean you should completely give up on your dream. You should just consider other options too and choose whatever suits best your needs. Sometimes our wishes are far from reality. Since we are talking about large investment, you should probably consult professionals and hear their opinion. Who knows, maybe you find a great offer, or maybe you decide to go for an apartment after all. Whatever you decide, make sure you are comfortable with your decision. Future is exciting, enjoy it!