Rent or Buy in Hoboken?!! (23 years old with $200K Cash)

[Chris Toler]

Hello,

I am 23 years old, and I currently have around $200,000 of free capitol and zero debt. I make a salary of $120,000/year (75K clear).

I work in NYC, and my work will be moving to NJ (but will still be close to the city). I have done my research and I think the Hoboken area fits the living/lifestyle needs I am looking for (fun night life, commutable to NYC/NJ, safe area etc). I do not know whether to put a down payment on a place or to just rent each month (given my situation). In the future if anything changes (work, family etc.) I plan to rent to property out in hopes to have a cash flowing asset, while gaining equity over the long term. 

Purchasing a house at this age seems scary, but then I think renting does not seem like the best financial decision. PLEASE HELP!!!!

[Christene Martin]

Hello Chris, 

I have been in the JC/Hoboken area for about 14 years. I bought at a young age, "house-hacked" before I even knew what that meant! (i just called it having a roommate) and back then I was commuting to midtown, it has worked out beautifully, despite the sharp economic downturn shortly after I purchased. I also own a rental unit in Hoboken for the past 6 years. If you have any specific questions about Hoboken or anything, I would be happy to help answer them. Of course, it's your call and you have to be comfortable with your decision. I would buy, knowing that if your circumstances change, you will likely be able to hold the property and rent it out, fairly easily. 

Good luck! 

Christene