The Hamptons in Long Island, New York refers to the villages and hamlets in the East Hampton and Southampton. Located in the east of Long Island, New York, people know that the place has the most expensive real estate properties ever sold in the US.
In recent surveys to home buyers whether as a first-timer or investor, respondents reveal that Southampton is more expensive than the East Hampton. Despite the expensive prices of buying a Hamptons real estate property, many celebrities or average income earners want to live in the Hamptons and buy a home anywhere in that area.
The question is which is more viable, to lease or purchase a house and lot? For a person who sees the Hamptons area for the first time, buying a property in the South or East region is very tempting. With all the bucolic vistas, ranch-like vibes, and peaceful impression of the place, no one can resist an opportunity to experience how to live in Long Island, New York.
Leasing a house in Hamptons
Leasing becomes a good option when you are planning to stay for a few months to a couple of years. Anything longer than a two-year stay, leasing is not a good option. Another factor to consider is relocating. When you know that the probability of changing address happens sooner than you expect it to be, renting a Hamptons real estate home is a better choice.
However, before you consider renting, your rental should be 50% to 70% lower than the cost of paying monthly mortgage amortization when you buy a house. When the rental fee is higher than or equal to your estimated mortgage amortization then leasing may not become favorable.
Advantages of leasing
One advantage is no property tax payment. You do not have to worry about taxes. You will not be wasting time filing a property tax return. No worrying if you have filed the right amount or rate of property tax.
The second advantage is no hassle of putting up the property for sale when you leave the place. As long as you are a good lessee who pays the rent on time, you can leave with no trouble.
The third advantage is no payment of mortgage amortization, applicable interest rate, and house insurance.
The fourth advantage is you can leave the place if you do not like living in it anymore.
Disadvantage of leasing a Hamptons real estate home
The first disadvantage is the limitations on what you can do with the property. Some lessors do not allow any changes to the house. Others give you chances to refurbish but not to renovate. In some instances, these owners do not even permit their lessee to bring a pet into their rental property especially on an apartment complex.
The second disadvantage is no property ownership by the end of your lease term. Unless it is a rent to own, do not expect to own the house after 5 years.
Purchasing a House in the Hamptons
The majority of first-time buyers feel overwhelmed with the high prices of a simple house in any of the Hamptons area. Most of the time, they resort to renting instead of making a thorough evaluation and comparison of prices. Why does purchasing a Hamptons real estate property is still the best option despite the high prices?
First, the investment is worth it. Even if you are staying only for more than two years, you can sell the house with an existing mortgage. Alternatively, you can let the buyer assumes the mortgage. However, this option is an uncommon practice.
If you opt to use this method to sell your house, transparency is necessary. You must inform your lender that you plan on selling the house and that you are trying to convince the buyer to assume the balance of the mortgage.
The second advantage is the right to lease the property to others after paying off the mortgage. If you do not want to stay in the Hamptons area anymore, rent out your house for an added income.
However, the number one disadvantage of buying a Hamptons real estate property is its price. Properties in Hamptons areas are very expensive with an average of $10M to $20M, depending on the area, and improvements made to the land area. Though affordable land properties exist in the eastern part, you still need to build a house. To construct your dream house, you need to avail mortgage loan. The good side is you can choose what kind of improvements you want with the property.
Hamptons real estate home is a better choice. hamptons real estate services given by li-realestatefinder, helps to a lot of people who are now buying houses in hamptons in long island.