Everyone dreams of living in NYC but moving every year due to renting problems can be a hassle. If you can afford it and intend to stay in the area for a time, purchasing an apartment in NYC is an excellent option. You can even rent the property later, as demand never dies in the area. If you’re indecisive about purchasing your next home, the following tips might help you decide.
1. The Real Estate Market in NYC Favors Buyers and Sellers
NYC has a better recovery rate than other US cities when there is a decline in property prices; consider how Manhattan recovered swiftly even after the depreciation due to COVID-19. Alongside this, most people in NYC are looking to rent homes, not buy them. There will be less competition for the property you want.
2. A High Number of Condos Available
Condos are typically less costly and require less maintenance than a house, and NYC is full of them, with an average of 22,784 new condos available in the city in the last six years. Living in NYC condos means having access to many amenities, like a gym, pool, and security systems, which can be expensive if installed in your house. You can also directly request a service, and the building management will finish it. Make sure to find a realtor and go through tips for buying a new condo in NYC to make an informed decision.
3. Capital Gains Are Significant
While NYC properties are expensive, they can return high profits. Plus, the IRS provides a tax break to homebuyers for primary residences. This allows you to avoid paying taxes on capital gains of $250,000 for an individual and $500,000 for a married couple when selling. Conditions for this tax exemption are if you've owned a home for at least two years as your principal residence and you need to sell it due to certain conditions.
You’ll also get tax deductions on interest. This includes interest payments on a mortgage to either purchase or improve a rental property and interest charged on the credit cards used for the rental business. If specific conditions are met, property owners may get tax exemption for costs related to running a home office. You may also be granted a reduction or exemption from real estate taxes if your property is a new structure or an old one that has undergone full rehabilitation for a set length of time.
4. Renting Opportunities
As a tenant, one of the downsides of living in NYC is the frequent rent increase accompanied by capital improvements. However, these are not a concern when you own your place. And you can always make a profit by renting the home when you’re not living there.
NYC is a property owner’s market for rentals due to the immense demand for every vacant unit. You can set stringent criteria or even raise the rent if multiple renters apply for the same flat. The tenants can help pay your mortgage and give you a steady passive income.
Establishing yourself here may be financially advantageous if you intend to stay in the city for a time. In NYC, each neighborhood's market is different. Murray hill, the Lower East Side, and the East Village are great areas for buyers to look at now.
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