In Chelsea today, the average one-bedroom apartment rents for between $5,000 and $6,000 per month.
What if I told you that for the same monthly cost, you may be able to buy an apartment instead of renting one? Instead of paying a landlord, you could be paying yourself through equity, while also benefiting from potential tax deductions.
Last year when the FARE Act went into place, rents jumped between 11% and 16% within the first two weeks. This year, we are already seeing rents up another 10% over last year.
What we are seeing in the market, especially under the $1 million price point, is that many people are choosing to stay put and absorb rising rents instead of taking the leap into ownership.
I would genuinely love to hear from those of you on the fence. What are your hesitations?
Yes, buying in New York City can feel daunting. I’ve done it myself, and I survived.
If I look back at my own apartment over the last 16 years, and conservatively estimate rent at $3,200 per month, I would have spent approximately $614,400 in rent alone.
You do not have to stay in an apartment for 18 years like I did, but real estate in New York is often a long game.
One of the greatest ways to build long-term wealth is through real estate ownership. As Warren Buffett has long believed, owning quality assets over time matters. The equity and appreciation from your first apartment can become the stepping stone to your next one, and then the next after that.
Something to think about.
Remember, history isn’t behind us. We’re living in each and every day.
