Katie Holmes pulls out of buying apartment

Financial advisers say she's better off renting


Celebrity Sightings - New York

Katie Holmes has reportedly puleld out of buying a $6m New York apartment, opting to continue renting instead.

The actress was said to have been looking to move in order to give eight-year-old daughter Suri a better quality of life, and viewed several New York apartments. She was so taken with one, a prewar four-bedroom, four-bathroom apartment at 390 West End Avenue, that she put in an an offer last month.

But, says the New York Post, she pulled out of the deal after she was told by her financial advisers that she'd be better off continuing to rent.

The 3,100-square-foot apartment, which was on sale for $6.75 million, is now being sold to someone else.

Since splitting up with Tom Cruise in 2012, Holmes has lived in the fashionable district of Chelsea, saying she plans to focus on her daughter and her career. According to Entertainment Weekly, she may be planning a move into producing, after optioning the novel All We Had - a gritty portrait of a mother and her 13-year-old daughter, who live on the edge of poverty.

Holmes herself lives in somewhat greater luxury. Her current three-bedroom, two-bathroom apartment in the Chelsea Mercantile building has 11-foot ceilings and one of the best roof decks in Manhattan, and costs her $12,500 a month.

"I love being able to experience so many cultural things in one day," she recently told Glamour magazine.

"I live very close to the gallery district, and then at night I'll find myself at Lincoln Center at a ballet. I love going to Knicks games, and I love taking the subway."

The price of luxury properties in New York is soaring. While the average cost of a one-bedroom apartment fell 3.6 percent in the first quarter of this year, prices for apartments with four or more bedrooms jumped 16 percent - to a median price of $6.75 million.

"You're seeing a wider spread now between the very high end and what we'd call the middle class in New York," says Jonathan Miller of Miller Samuel Real Estate Appraisers & Consultants.

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