When does buying actually pay off?
Buying in NYC costs a lot on the way in (closing costs, mansion tax at $1M+, mortgage recording tax on condos) and a lot on the way out (broker, city and state transfer taxes, a co-op's flip tax). This compares owning against renting and investing the cash you didn't put down, and tells you how long you'd need to stay for buying to come out ahead.
Assumptions (placeholders, not forecasts: sources page)
Seller attorney ($2,500), title and misc. ($1,000), and the co-op transfer fee ($500) use the net proceeds calculator's defaults. NYC and NYS transfer taxes are calculated from the sale price.
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- Owning, first month
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- Renting, first month
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- Cash at closing
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- Break-even rent
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All figures here are calculated estimates from the inputs and assumptions on the left, not market data.
- Buy (sale proceeds + investments)
- Rent (invested cash)
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Show as a table
| Year | Home value | Loan left | Sale proceeds | Buy: net worth | Rent: net worth | Buy minus rent |
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| Buy | Rent |
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Two people, same money. One buys. The other keeps renting and invests what the buyer spent at closing (down payment plus closing costs). Every month, whoever has the cheaper housing bill invests the difference at the same return. At the end of each year we ask: if the buyer sold now, who has more?
The buyer's side uses the same engine as the co-op and condo calculators for closing costs, the mansion tax, mortgage recording tax, and the monthly payment. Monthly cost is principal and interest, PMI until the loan reaches 78% of the price, the building's charges (plus property tax and insurance for a condo), and in-unit repairs. The sale uses the net proceeds calculator's math: broker commission, NYC and NYS transfer taxes, attorney and title costs, and for co-ops the flip tax and transfer fee.
Paying down principal isn't a cost. It comes back when you sell, which is why "rent is throwing money away" is only half true. Interest, building charges, repairs, and the transaction costs on both ends don't come back. Neither does rent.
The break-even rent is the starting rent at which the two paths finish even over the years you chose. If a comparable apartment rents for more than that, buying wins over that stay; less, and renting does.
What's left out: income taxes in both directions (the mortgage-interest and property-tax deductions, tax on investment gains, and capital gains on the sale, which the sell calculator can estimate), refinancing, special assessments, a co-op's refundable move-in deposit, and the value of stability or of being able to leave. Under the FARE Act, renters usually no longer pay the landlord's broker, so no broker fee is assumed for the renter. Growth and return rates are illustrative placeholders, not forecasts. See the methodology.