NYC is Taking Hikes this Summer… So Why Rent When You Can Own?
Rent hikes… rising interest rates… skyrocketing inflation numbers. This can be a terrifying scenario for renters and buyers, but rest assured: it is not the time to sit still and hold.
Last Tuesday, 21, at Cooper Union, the Rent Guidelines Board approved new increases of 3.25 percent for one-year leases and 5 percent for two-year leases on a panel of voters; the rent adjustments are set to affect around one million rent-stabilized units.
While most Landlords stood for even higher increases, tenants were not happy: as they stand from a point of view of a community still under the pandemic effect on the economy, rent increases could make the city a hard place to afford.
This decision can mean disadvantage on the tenant’s side, as this is a difficult time in the economy, but small Landlords who could be facing bankruptcy can now get a chance to provide quality living for their tenants…
… So why rent when you can buy?
As the Federal Reserve tries to shift the current inflation levels, interest rates on mortgages soared to high levels. That, combined to the recent hikes on rents can leave tenants and buyers with a sense of confusion.
Home prices are yet to moderate due to low inventory, and the sales boom is starting to slow down, but that is not a reason to get scared. The rates are expected to cool down by the end of the year, and the rapid pace of the change in the dynamic of the market.
But paying rent can sometimes mean paying for someone else’s dream, and maintaining someone else’s investment alive. It is worth considering investing that money generating equity for yourself.
For example, renting this one bedroom apartment will cost you $6,995 monthly with rent increases yearly, whereas buying this apartment of the same size at a brand new development will cost a few hundred dollars less per month. Doesn’t it make sense to start investing in something that will bring not only stable living but future financial prospecting?
Are you looking to buy and have no idea how to get started in the process?
Click here to check out our Buyer’s Guide!