Should you keep paying premium rent in NoMad or start building equity nearby? With prices, fees, and rules that vary by building, the right move is not always obvious. You deserve a clear, numbers-first answer. In this guide, you will learn how to model your true monthly cost to own versus rent in NoMad, what local rules change the math, and how long it may take for buying to break even. Let’s dive in.
How to compare costs
Gather neighborhood inputs
Start with real, building-level inputs that match the home you want to live in.
- Representative purchase price for your unit type, such as a 1BR or 2BR in NoMad.
- Typical asking rent for the same size and quality.
- Current mortgage rate quotes and expected down payment.
- Monthly condo common charges or co-op maintenance for the specific building.
- Estimated property tax if a condo, or the tax portion embedded in co-op maintenance.
- Insurance, utilities, and a reserve for repairs or potential assessments.
- Expected hold period and conservative assumptions for price appreciation and rent growth.
Use neighborhood reports and building financials for accuracy. For closed-sale history, review recorded transactions. For rent rules, consult official NYC resources on rent regulation.
Compute monthly owning cost
Add these items to see your all-in monthly cost to own:
- Mortgage principal and interest
- Monthly condo common charges or co-op maintenance
- Property tax if a condo, or confirm the tax portion within co-op maintenance
- Homeowner’s or condo/co-op insurance
- Monthly reserve for maintenance and repairs
- Optional: the opportunity cost of your down payment if invested elsewhere
Compute monthly renting cost
Add these renter costs to compare on equal footing:
- Monthly rent
- Renter’s insurance
- Utilities that are not included
- Broker fee amortized across the lease term if applicable
- Security deposit is a cash hold, not a monthly cost, but plan for timing
Include tax effects
If you itemize deductions, factor in after-tax cost of mortgage interest and property taxes. The federal state and local tax deduction cap can limit tax benefits, so keep expectations conservative.
NoMad factors that change the math
Co-op vs condo rules
- Co-ops often require higher down payments, commonly 20 to 50 percent, and board approval. Subletting may be limited. Monthly maintenance often includes the building’s property taxes and sometimes underlying mortgage costs.
- Condos are generally easier to finance and more flexible on subletting. You pay common charges plus property taxes as separate line items.
- Impact on your plan: co-ops can require more upfront cash and may favor a longer holding period to make the numbers work.
Rent regulation and market-rate units
Many newer NoMad rentals are market-rate. Rent-stabilized units exist across Manhattan by building eligibility and rules. If you secure a stabilized lease, slower rent increases can tilt the numbers toward renting. Always verify a specific unit’s status.
NYC transaction costs
New York City and State transfer and recording taxes, attorney fees, and other closing costs are material. These costs also appear when selling. Build them into your hold-period break-even timeline.
Neighborhood supply swings
NoMad sees new rental and condo projects and some hotel or office-to-residential conversions. Fresh inventory can move prices and rents quickly. Re-check the numbers before committing.
Worked example: 2-bedroom comparison
The following is illustrative only to show the framework. Replace with your live inputs before deciding.
- Purchase: $1,200,000 condo, 20 percent down ($240,000), mortgage $960,000 at 6.5 percent, 30-year fixed
- Monthly mortgage payment: about $6,071
- Monthly condo fee: $1,200
- Property tax estimate: $500 per month
- Insurance: $75 per month
- Maintenance and capital reserve: budget 1 percent of value per year, about $1,000 per month
- Total monthly owner cost: about $8,846 before tax effects
Comparable rent for a 2BR: $7,000 per month
- Renter’s insurance: about $20 per month
- Broker fee example: 12 percent of annual rent equals $10,080, amortized over 24 months equals about $420 per month
- Total monthly renter cost: about $7,440
Monthly difference: ownership costs about $1,406 more per month, or about $16,872 per year before any tax effects and principal paydown.
Equity and appreciation:
- Principal paydown in year 1 might be roughly five figures, depending on amortization.
- If the home appreciates at 2 percent per year, that is $24,000 in year 1 on a $1.2M price. Selling later involves transaction costs, so model a few hold periods.
Breakeven idea:
- Compare the cumulative extra cost to own with the equity you build and projected appreciation, minus selling costs.
- With these inputs, breakeven might fall in the 4 to 8 year range, but it is very sensitive to mortgage rate and appreciation.
When renting can be smarter
- You plan to stay fewer than 3 to 5 years.
- You find a rent-stabilized unit with lower annual increases.
- The building you would buy into shows signs of big capital projects and possible assessments.
- Mortgage rates are high relative to rent, and your down payment has better alternative uses.
When buying can add up
- You plan to hold for 5 to 10 years or longer, which allows equity growth to compound and spreads closing costs.
- You prefer a condo for flexibility to sublet if life changes and board rules permit.
- You value principal paydown and potential appreciation.
- Your monthly cost to own, after tax effects, is close to rent and you want long-term payment stability.
Build your own NoMad model
- Start conservative. Use 0 to 3 percent for appreciation and 1 to 3 percent for rent growth.
- Test scenarios. Shift the mortgage rate by plus or minus 1 percent and appreciation by plus or minus 1 percent to see the breakeven change.
- Include opportunity cost. Model with and without a 3 to 5 percent annual return on your down payment invested elsewhere.
- Get building specifics. Verify whether the target home is a condo or co-op, review financials, board rules, and any planned capital work.
Practical next steps
You do not have to build this model alone. I can help you pull building-level fees, verify co-op or condo rules, connect you with local lenders and attorneys for precise closing cost estimates, and run side-by-side scenarios tailored to your hold period and budget. If you decide to sell later, we can plan improvements that boost your net.
Ready to see your true NoMad numbers and path to breakeven? Let’s talk. Connect with Darya Goldstein to build your personalized rent-versus-buy model.
FAQs
What is a typical down payment for Manhattan condos and co-ops?
- Condos often allow 10 to 20 percent down, while many co-op boards expect 20 to 50 percent, with 30 percent common and some post-closing liquidity requirements.
How do co-op maintenance fees differ from condo common charges?
- Co-op maintenance usually includes the building’s property taxes and may reflect building-level debt, while condos separate common charges and property taxes into distinct monthly items.
How do NYC closing costs affect the buy-versus-rent decision?
- New York City and State transfer and recording taxes, plus attorney and related fees, increase upfront and sale costs, which can push breakeven farther out if you hold for only a few years.
Are most NoMad rentals rent-stabilized?
- Many newer NoMad buildings are market-rate, but rent-stabilized apartments do exist by building eligibility, so confirm a unit’s status because slower rent increases can change your model.
What mortgage rate should I use in my calculations?
- Get current quotes for your profile and test a range by plus or minus 1 percent, since rate shifts materially change monthly payments and your years-to-breakeven.
