Is It Better to Buy or Rent on Long Island?

The decision to buy or rent faces every 20 something year old American at some point in their journey. Renting is obviously more care-free, but it can also set you back financially if you're currently able to start building your equity. A home is an investment. You spend your life in it, and if you're lucky, you'll get greater value for it at the point of sale. Here are some factors to consider in the rent or buy decision»

 

 

 

• How Long Do You Plan On Staying? We have this up there first because it is probably the most important factor to consider. Average rent on Long Island and in the five burroughs is between $850-$1100. If you are not looking to stay in this area, or if you envision having a family within the next few years, renting is probably best. You'll dodge a lot of the homeowner fees and save for when it is time to buy your own home. 
• What Deals Are on the Table? This is right below your timetable because it is also VERY important. You might know a realtor or know someone who is selling, and this gives you the ability to skip realtor fees. If you can get a decent home on Long Island for less than $350,000, that is a deal you have to strongly consider. The market seems to be steadily increasing and if you start paying into a mortgage sooner, you'll reap the benefits later. 
• What Are You Looking For? The price of your home really isn't the ONLY factor you should consider. You should also be taking these things into account: 
  1. How Much Work Does It Need? 
  2. What Are Your Handyman Connections Like? 
  3. What Are Property Taxes in the Neighborhood? 
  4. How Are the Schools? 
  5. What Happens With Your Commute to work? 
• What Is Your Current Situation? The general rule of thumb for a down payment on a home is right around 25-35% of the sale price. So for your typical $400,000 home, you're looking at about a $100,000 down payment. If you don't have that kind of money, which most of us don't you can go lower, but your mortgage payments will be higher in return. That is why saving as a renter or someone who lives with their parents is so vital. Spouses that are also financially responsible won't hurt your situation either. Just something else to consider in the dating game!