Anyone who currently resides in New York, or who is looking to move to the big city, has likely faced a number of sleepless nights asking this exact question: Should I rent property or should I own?
Although there is no easy resolution, a recent interactive map put together by Bloomberg and StreetEasy is designed to help demystify the answer to this question.
How does the interactive map work?
A recent article by Brick Underground discussed the map, noting that it is designed to provide data on the median prices and changes in prices over the past year.
It also provides an estimation of how long it would take the cost of rent to outweigh the cost of purchasing the property - a calculation referred to as the "tipping point." Currently, the map shows that some areas only take about four years to reach this tipping point. Others, like the popular Soho neighborhood, can take more than eight years for a purchase to meet this "tipping point" test.
In addition to helping decide if ownership is the right choice or not, the information can prove to be a valuable tool during negotiations. Having data about past property purchase prices and median prices in the area can better ensure the buyer has the information he or she needs to negotiate a fair price for the property.
What if I decide to buy property in New York?
Unfortunately, answering the difficult question of whether to rent or own is just one of many that those living in New York must navigate. Those who chose to purchase property in New York will face many difficult questions.
As a result, you may wish to seek legal counsel. An attorney can provide assistance during the entire process, from finding a broker to finalizing the closing for the property, better ensuring that your rights are protected.