With rent in Manhattan so high, is buying an apartment cheaper than paying rent or is renting still less?

Question

With rent in Manhattan so high, is buying an apartment cheaper than paying rent or is renting still less?

Answer 1

It depends upon what your needs are.  If you plan to stay in the area for at least 5-10years and you can afford to buy, then buy. The tax deductions are great and you are building up equity in your investment.

If you may be leaving the area (out of NY) within that time, it may be easier in the long run to rent.

Research the areas you are interested in and learn about the surrounding areas which may offer cheaper rent with the same overall benefit of the neighborhood.  I know that Manhattan is convenient but consider an outer borough. There are plenty of places in Queens and Brooklyn that are good neighborhoods and are less expensive. Just be sure to get a place that is close to public transportation since owning a car (insurance, parking, tolls, etc.) can be expensive.

Either way, look around and ask people you trust. On your days off, when you can, go to various neighborhoods and look around. There is tons of information online. Many communities have blogs and the real estate sites have info on some neighborhoods.  Good luck in your quest.