If you have been thinking about moving to Manhattan and buying a home there at some point in life, you are probably aware of the fact that Manhattan is crazy expensive. But just how expensive it really is? If you want to know all about just how much money you really need for buying an apartment in Manhattan, you are in the right place. We have done plenty of research both online and in person and we have managed to find out just what it takes to be a homeowner in New York City. Precisely, how much? So, without further ado, let us get started. There is a lot of information to be shared.
What is the real estate market of Manhattan like?
The first question to answer is what the real estate market of manhattan is like. And we have to warn you that it is quite a busy one. There are people from all over the country but also the world looking to buy a property here. It is one of the most popular moving destinations. No wonder it has a busy real estate market.
But what does that mean? It means that there are plenty of buyers and there are not enough homes to fulfill everybody’s needs and wants. This is why it can be a tricky task to find a home you like and can afford in Manhattan. There is a way to make searching for a home in Manhattan easier and we will tell you all about it.
Should you hire a real estate agent?
We mentioned that we will tell you all about a way to make looking for a home in Manhattan easier. And the best way to do so is to hire a real estate agent. Sure, this is only going to make buying a home more expensive but for a good cause.
By hiring an agent to find you a home, the process will last shorter and will be less stressful. You do not have to think about spending hours scrolling through online listings. This way you will have plenty of time to get other things done. This is why hiring a real estate agent is a good investment to make. Especially when buying a home in a city such as New York City.
A real estate agent can also negotiate a price with the home-seller as he will do a proper inspection of the home before you sign anything. So, you might also be able to save some money by investing money. Real estate agents also have a few tricks up their sleeves and are able to find homes you wouldn’t be able to see in online listings.
We believe that it is always best to let experts handle everything you are not good at. The same goes for when moving to Manhattan.
The cost of homes in Manhattan
Now let us finally tell you about the cost of a home in Manhattan. The median home price of a home in Manhattan is at $1,7 million. This is a lot of money for a home. But you have to consider that there are more of those homes that cost over a million. More affordable homes in Manhattan are very hard to find.
And even if you do manage to find one, it is most likely very small and run down. With the investments you will have to make into remodeling this place, it comes to about the same as if you were to buy a more expensive home to live in.
Can you take out a loan?
As housing in New York City is so expensive, not everyone is able to give such amounts of cash. This is why if living in Manhattan is your dream and you don’t have enough money, you can take out a loan. To get a loan, you need a steady job, a stable income, and a certain amount of savings. You need to pay a down payment for the home you want to buy. The rest of the cost of the house will be covered by your lender. And have in mind that the bigger amount you are investing in, the smaller the loan will be. This means that it will be easier to pay off.
You will just pay off the rest of the home over the years through monthly payments. For a lot of people, this is a much easier expense to handle than to give over a million dollars all at once. But this is a serious step to take and it is why we advise you think this idea through well.
That is why you should first save up as much money as you can so that you are able to pay a bigger down payment for the home. That way each monthly payment will be smaller. And if you pay more over time, you will pay it off much faster and you will spend less money. The sooner you pay off the loan, the smaller the loan gets.
Does buying an apartment in Manhattan pay off?
Even if you don’t plan on moving to Manhattan but you are just buying an apartment in Manhattan to rent out, this is still a good investment to make. Especially if you buy an apartment in one of these neighborhoods:
- Upper West Side
- Upper East Side
- East Harlem
- Hell’s Kitchen.
The prices of housing in Manhattan will only continue to grow over time, if you decide to sell the home, you could earn more money than you have spent. This is what makes having a home in Manhattan such a great investment besides being able to live in this beautiful city. So, if buying an apartment in Manhattan is your dream, we say go for it!