Are you a pick-up-and-go kind of gal? Or a settle-in-and-stay-a-while kind of guy? It might seem obvious, but the most important factor to consider in the rent vs. buy process is how long you intend to stay in your new home.

The Big Picture. There are two ways to look at this decision. First, the Big Picture: Are you ready to take your own big bite out of the Big Apple? Is Manhattan right for you for the long haul? Is there a possibility that you might get transferred or develop a sudden yen for wide, open spaces and no neighbors? If you answered yes, chances are Buying isn't right for you.

More likely, you've pictured yourself living in Manhattan for the next 5, 10, 15, 25 years and it looks good. So you'll want to zoom in on the second part of this decision: Do you want to live in this neighborhood for all of those years?

The Local Point of View. Deciding to stay in Manhattan isn't enough. You need to consider the future of your neighborhood and your relationship with your neighborhood. Is it "on the way up," real estate-wise? Does it have everything you want? Do you like the people? The stores? The dry cleaners? The groceries? You don't need to answer yes to all of these questions; you just need to determine what you prioritize and whether or not your new neighborhood has what you want.

Unless you are one of those savvy real estate investors, buying an apartment is a long-term plan. It's like marriage. If you shudder at the word "commitment," you might want to think twice. Buying an apartment means taking ownership of, sinking money into, and making a commitment to one apartment. No hopping from place to place. No picking up and moving on a whim. On the other hand, buying an apartment means that you can count on living in a place at a fixed price, save the occasional increase in maintenance fees.

Renting is a short-term plan. You sign a lease that begins and ends, with an option to renew at a possible rent increase of 2-15%. Renting means you can break the lease, move to Omaha, New Jersey, or Mexico at a moment's notice, and you'll only lose one month or two months' rent.

Are you ready for a little number-crunching? This is the fun part. Does it make better fiscal sense to rent or buy? Break out your calculator--we've got some comparison shopping to do.

Rental Costs. Say you rent an apartment for $1,500/mo. Without getting sophisticated by considering investments and the time value of money, that means your rent expense for the year is $18,000. In return for your $18,000 investment (post-tax of course, implying a pre-tax cost of $25,000-$30,000), you get a place to live and not much else. In this market, $1,500/mo. rents a decent studio or a very small one bedroom.

Buying Costs. Since 85% of Manhattan buildings are co-ops, let's say you're looking for a co-op where the monthly cost is the same as above. You find a place for about $160,000. You have to put down 20% so and your mortgage is about $128,000. On a 30-year mortgage at 7%, this is a monthly payment of about $860. Add a monthly maintenance of $640 and you are spending $1,500/mo. This is probably enough to get a nice one-bedroom or an unusually nice studio.

So, what's the difference? Well, if you want to buy the above apartment, you have to come up with $32,000 in cash to finance the purchase (plus related mortgage and closing costs). Bummer, right? Sure, but for $160,000 and $640 maintenance a month, you're getting to live in a nicer, bigger place for the same monthly payment. Plus, owning property awards substantial tax benefits, since a large percentage of monthly maintenance is tax-deductible, along with the interest on the mortgage. So, assuming your maintenance is 60% deductible, you'll be deducting $384/mo. at the end of the year. That's more than $4,600 over the course of the year. Your tax savings would probably be $1,200-1,500. If you amortize these savings over the course of a year, you lower your monthly costs by at least $100/mo. That doesn't even count tax-deductible interest. Not a bad deal, eh?

You've heard of the State of the Union? In Manhattan, real estate speculators would benefit from a quarterly State of the City update. This town suffers from a 2% rental vacancy rate and an inflated market. The only consistent thing about Manhattan real estate is the uncertainty. When it comes to renting, demand overwhelms supply and it's an owner's market.

Buying, on the other hand, is a different story. While Manhattan real estate is a bit on the pricey side, current U.S. interest rates are lower than they have been in a generation. For Buyers, this translates into low borrowing costs and cheap loans and mortgages. Though real estate prices may be high, borrowing costs tend to be quite low, which makes Buying a more realistic option.

Once you've made your decision, we at MLX can tell you everything you need to know about how to Rent or Buy your ideal new home. Until then, though, it's sort of up to you. You have individual tastes, future plans, financial profiles . . . Answer the big questions--Might you be moving soon? Is ownership important? Is the flexibility of renting worth the costs? Should you take advantage of low interest rates? Do you have money for a down payment?--for yourself. Then get back to us. Once you've made a decision, we'll have a lot to talk about. Best of luck.