Apartments for Cheap

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Your Questions About Apt For Rent In Nyc

September 13, 2012

Steven asks…

Buy or Rent a new home?

Live in NYC but there are bargains if you dig a little. I want to purchase a home very badly – but I have a lot of debt, have fair credit and am just about to start a new job…

On one hand I want to move from my apartment ASAP because it is no longer ideal and the pest problems have gotten out of hand. On the other hand, it could take me years to save for a downpayment – time I dont want to spend in my lousy apt

So would you rent a place you were happy in and postpone ownership for a couple years (my rent would go up because Im rent stabilzed and it would take me longer for the DP) or would you wait and still rent in the old apt and wait to buy a home (probably with a higher interest rate due to the credit issue)?

Thanks!

Administrator answers:

Good news and bad news:

Good news: There are fantastic deals out there right now for buyers. Now is a great time to buy, not only because prices have come down so far from 2007 prices, but interest rates are dirt cheap. It’s always possible prices could come down further in 2012, but right now there are short sales and foreclosures that are very attractive at there current levels.

Bad news: Because of the financial crisis, loans are much harder to get than before. You have to really get your financial house in shape before starting the loan process. Credit score means ALOT and you really need to pay off credit card debt to make yourself look better (if you have any). If you can manage to save a down payment of 20% you can eliminate mortgage insurance which will make your payments less, and cut back on wasting money.

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