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Rent versus Buy

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  • Rent versus Buy


    I am in my third year out of fellowship (age 34, single) and am moving to NYC this spring for a new position.  So far I have been a lifelong renter - my question is about whether it would be better to rent or buy in Manhattan.

    Certainly the cost of buying in Manhattan is very high (a suitable apartment in the area I would like to live might be about 1.2 million), but rent would also be high (about 4-5k per month), and perhaps it may be more prudent to spend a similar amount or slightly higher per month in a mortgage rather than renting.  Any advice is appreciated, thank you.

    Salary : 330K

    Student Loans : 215k, paying 4k per month, but due to Loan Forgiveness (PSLF) in 18 months from now

    Assets : Cash 100k + Non-Retirement (taxable) 450k + Retirement 100k

    Total Net Worth : (Cash + Non-Retirement + Retirement - Student Loans) = Just over 400k (and not accounting for loan forgiveness in 18 months)

  • #2
    Welcome to the forum!

    You preferably want to buy for a minimum of 5 years. Rent for at least a year - until you know:

    • the neighborhood and

    • that this job's a keeper.

    Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087


    • #3
      Do you know NYC? If not rent for a year.


      • #4
        i know a few friends moved to NY for a job but after a year they all left. So i would say rent on the first year then decide what is next.


        • #5
          Rent.  Better still, be roommates with a reliable, non-flaky person.