Thursday, June 23, 2022

How Much Is A Condo In New York

The Impact Of International Buyers In New York

How To Determine The Value of A Condo In New York City | A Minute With Michael #1

Despite all the talk about the one percenter dominating this and that, the truth is that the international elite is bolstering the price of luxury real estate in New York City. They see NYC real estate investment as part of a multi-pronged approach. The property is almost certain to appreciate, so it is an investment. Owning a piece of the NYC housing market gives them a place to stay if they have to flee their home country. The money invested in the NYC housing market is typically not reported to their government, and it is almost guaranteed not to lose value. Ironically, foreign owners like these are much more willing to take a modest loss when they sell when they are no longer interested in the property.

New York Property Taxes

Property taxes in the state of New York vary greatly between New York City and the rest of the state. In New York City, property tax rates are actually fairly low. The average effective property tax rate in the Big Apple is just 0.88% more than half the statewide average rate of 1.69%. In fact, many New York counties have rates exceeding 2.50%, which is more than double the national average of 1.07%.

Those low rates don’t necessarily mean that homeowners in the city pay less than those in other parts of the state, however. Due to Manhattan’s sky-high real estate values, the typical homeowner in the city pays $8,980 annually, while the statewide median payment is $5,732.

If youre looking at homes in New York, check out our mortgage guide for information about rates and getting a mortgage in New York.

A financial advisor in New York can help you understand how homeownership fits into your overall financial goals. Financial advisors can also help with investing and financial plans, including taxes, homeownership, retirement and more, to make sure you are preparing for the future.

How Long Before I Can Move In

The length of the period between signing a contract and actually closing on the property is very much a case-by-case situation. Some estimates say it takes about 90 days from when the contract is signed to when you get possession of your home, but it really depends on a variety of factors. Buying a condo versus a co-op, getting pre-approval from your lender, the real estate lawyer youve hiredall of these factors can play a big role in the amount of time it takes to secure your home. Condos can usually be secured within to 30 to 45 days, and co-ops can take between 60 to 90 days.

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Can You Purchase An Apartment In Nyc

To determine whether you can purchase an apartment in NYC, visit Hauseits interactive Home Affordability Calculator. The calculator allows you to compute your maximum purchase price based on factors such as income, estimated closing costs and the post-closing liquidity requirements for your bank and/or co-op building.

Buying vs. renting in NYC is a highly contentious topic, although most people agree that its far more enjoyable to own something and build equity with your mortgage payments versus paying rent and receiving no long-term benefits or possible upside in return.

Pro Tip: Estimate your seller closing costs in NYC with Hauseits interactive closing cost calculator for sellers.

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Disclosure: Hauseit and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. The services marketed on Hauseit.com are provided by licensed real estate brokers and other third party professional service providers. Hauseit LLC is not a licensed real estate broker nor a member of any multiple listing service .

Catch A Game In The City

How Much For A Condo In New York

In New York, you have at least two home-team options for every major sport in the US.

Like basketball? Root for the Knicks or the Nets. Football? The Giants or the Jets. Baseball? The Yankees or the Nets.

Regardless of the team, you’re rooting for, you’ll need to consider the cost of attending a game in your budget. Here’s a breakdown of the average ticket costs for some of New York’s sports teams.

  • New York Knicks: $82
  • New York Jets: $64

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How A Home Affordability Calculator Can Help

Not good with numbers? A home affordability calculator can do these calculations for you. Just punch in your income, debt, even your dream neighborhood, and it will tell you what price of home you can afford.

Keep in mind that this is just a ballpark start: To get a more fine-tuned assessment, contact a lender, who will sit down with you for free, take a look at your finances, and help you figure out how large a home loan you can handle.

Working with a great mortgage lender will help you determine what you can actually afford, compared to what you think you can afford, says Phillip Salem, a real estate agent with Triplemint in New York.

So before you get your heart set on a deluxe apartment beyond your financial reach, figure out whats realisticand prep your finances so theyre in great shape to make a purchase .

How Much Of A Down Payment Do I Need For A Coop

The average down payment for a co-op apartment in NYC is 20% of the purchase price. Exact down payment and financial requirements vary by co-op building, however its rare to find a cooperative building in NYC which permits anything less than 20% down.

Buying a co-op in NYC actually requires you to have much more than just the down payment and closing costs available in liquid assets. This is because most co-op buildings require you to have liquid asset reserves of at least one to two months of housing expense after closing.

You may wish to consider obtaining a gift from a family member to fortify your overall finances if you are a bit short on assets. Since not all co-op buildings permit gifting, your buyers agent can verify the co-ops policy by checking with the listing agent and/or the transfer agent and the buildings managing agent.

Receiving a gift is as simple as preparing a gift letter and submitting this along with your co-op offer. When it comes to submit the co-op board application, you will also include the gift letter as part of your supporting financial documentation.

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$1845m In Flatiron Manhattan

Perched on a high floor with unobstructed southern views of the Manhattan skyline and the Freedom Tower, this spacious two-bedroom in Flatiron offers generously sized, sun-drenched rooms and a beautiful terrace. The apartment sold for $1,845,000 in late 2019 after only 18 days on the market.

The Parker Gramercy is a full service, pet-friendly building that offers a 24-hour doorman and concierge, live-in super and an on-site valet, a garage, dry cleaning services, and a large laundry room. The building was built in 1964, and it was converted to a co-op in 1984.

The building has entrances on West 14th Street and West 15th Street allowing you to have a better and quicker access to all major shopping areas and restaurants, such as: Whole Foods, many fine dining restaurants, coffee shops, among others. And it is a short walk to the 4,5,6,N,Q,R trains at Union Square.

What Is The Average Apartment Size In Manhattan

Too Many Condos in New York City?

The average size for a Manhattan, NY apartment is 702 square feet, but this number varies greatly depending on unit type, with cheap and luxury alternatives for houses and apartments alike. Studio apartments are the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer a more generous square footage.

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How Much Does A Two Bedroom Apartment Cost To Buy In Nyc

Two bedroom apartments in Manhattan range from $200k to $20 million and up. The most expensive apartments are in exclusive, full-service buildings clustered around Billionaires Row in Midtown Manhattan and which have direct and unobstructed views of Central Park. The least expensive two bedroom apartments in Manhattan are co-ops in the upper Manhattan neighborhoods of Washington Heights, Hamilton Heights, Manhattanville and Inwood.

Outside of Manhattan, two-bedroom apartments in Queens range from $200k to $3 million. The priciest 2br apartments in Queens are located in the Hunters Point area of Long Island City, which is just across the East River from Manhattan and feels very much like an extension of Manhattan. The majority of these high priced units are new construction condos.

On the lower end of the spectrum, there are plenty of 2br co-ops available in Queens for ~$200k in neighborhoods such as Briarwood, North Corona, Kew Gardens, Forest Hills, Bellerose and Woodhaven, to name a few.

Prices in Brooklyn start around $150k and top-out around $3 million. The most expensive 2br apartments in Brooklyn are typically new construction condos located in the western Brooklyn neighborhoods of DUMBO, Brooklyn Heights Carroll Gardens, Cobble Hill and Clinton Hill, to name a few.

The Power Of The Board

In a co-op, shareholders elect a volunteer co-op board which works with a property management company to oversee the care and maintenance of the building.

The board also creates and enforces rules about everything from renovation inside units, to whats allowed to transpire on the roof deck, to whether you can speak on your cell phone in the lobby, or whether dogs will be allowed in the building. Unlike condo boards, co-ops can even evict an extremely disruptive shareholder and force them to sell their apartment.

Overreaching, power-hungry co-op boards are the stuff of legend here, and some of the stories are true. However, at least as many co-op boards are made up of volunteers with full-time jobs and families who try to make the best of what is a demanding and time-consuming role when one well.

In a condo, individual owners elect a board of directors that perform many of the same functions as a co-op board. Generally speaking, though, most condo boards tend to be more hands-off when it comes to rulemaking.

That slightly more laissez-faire approach is partly due to philosophical underpinnings and partly because condo boards wield less legal enforcement muscle. Yes, the board can fine owners for the expense related to any rule infraction and get a court-ordered injunction to stop it from happening again. But because a condo owner actually owns his or her unit , a condo board cant evict an owner from an apartment like a co-op board can.

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New York Property Tax Rates

Tax rates in New York State are applied to the assessed value of your home. A number of different rates appear on your real estate tax bill, including a rate for your county, your city and your school district. In some areas, there may be additional special rates for tax districts to fund services or projects like libraries and parks.

Rates are recalculated each year based on the total value of real estate in a tax district and the amount of revenue the tax authority needs. Increases in property taxes are limited in most districts to the lower of 2% or the rate of inflation, so rates dont change much year-to-year. However, that cap can be overridden by a 60% vote of a local government board or the voters in a district.

Real estate tax rates in New York are given in mills, or millage rates. A mill is equal to $1 of tax for every $1,000 in property value. Since these can be a little confusing, it is also useful to look at effective tax rates. These are actual tax amounts paid as a percentage of home value. The table below shows the average effective tax rates for every county in New York State.

County

Looking to calculate your potential monthly mortgage payment? Check out our mortgage payment calculator.

Number Of Sales By Size

How Much For A Condo In New York

2020 was Covid year and the market was shut down for three months. The bottom of the market during the Covid period was in July of 2020. The market recovery started in 2021 and we had record high sales volume. Sales volume in 2021 was almost as high as 2007 driven by pent up demand, low mortgage rates and overall optimism as the vaccines came out.

The most recent quarterly numbers in 2022 shows the same trend. Supply has increased a bit, to the relief of buyers. Overall market is defined by low supply and very high demand.

Weimins article,Is now a good time to invest in Manhattan property?

Deal example: Clients Manhattan apartment close to World Trade Center bought a few years ago. Multiple offers at eventual sale.

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The Facts You Must Know About Nyc Hoa Fees:

It is a good idea to get to know about the terms and conditions of the homeowners association before you sign up for the detail:

  • The Fee is Not Fixed:

First thing first, you should know that the HOA fee is different for different units. It depends on a host of factors such as age, condition, and who owns the building. The cost may vary from a hundred to a thousand dollars depending on these factors.

Tip: Before you strike a deal for the desired apartment, ask how much would it make for the apartment against HOA fees so you can calculate your monthly expenses.

  • Fees Keep Increasing with Time:

The way rent increases on annual basis expect the same in HOA fees as well. You should keep that factor in your mind beforehand so you do not have to face trouble in years to come.

  • HOA Fees are Permanent:

Unlike your mortgage, you have to pay HOA fees as long as you own the property. You pay monthly installments expecting one day you will not be supposed to pay mortgage payments. But it is not like that here.

  • You have no Alternative:

It is not an option or there is no alternative to it. The moment you ink down a purchasing agreement, you become liable to pay this fee where the homeowners association exists. Avoiding it may make things unpleasant for you.

  • It Works for your Best Interest:

  • Average HOA Fees:

  • HOA Fees for Condos:

  • Fees for co ops:

New York City Fitness Costs

Fitness is an important aspect of healthy living. Luckily, there are tons of ways to stay fit that you can choose based on your budget.

You might be someone who works best with a tribe of like-minded lifters. If so, expect to spend around $111.47 monthly for a gym membership.

If you’re keen on fitness and cost-efficiency, you might enjoy home gym sessions that allow you to work up a sweat in your living room. A fitness app like Peloton might be your best bet. At $12.99 a month, it’s a steal.

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The Pros And Cons Of Buying A Townhouse Rowhouse Or Brownstone

Variously known as townhouses, rowhouses or brownstones–classifications drawn largely from the material of their facades–these mostly attached single family homes are the quintessential, classic New York City charmer…and the most demanding piece of real estate you will ever own.

They also dont come cheap: Plan on spending at least $2 million to $10 million , with wider townhouses priced higher than narrow ones, and location playing an outsized role.

Pros:

  • Privacy, privacy, privacy. Plus, you dont have to worry about being too noisy.
  • Private outdoor space
  • If your brownstone, townhouse or rowhouse has one or more legal rental units, you can offset your expenses by filling it with a tenant
  • Single family homes are exempt from New York Citys short term rental laws–meaning you are free to Airbnb your place as you see fit.
  • Lower property taxes than co-ops or condos taxes in Brooklyn & Queens are particularly attractive
  • The only approval youll need is from your mortgage bank . You and your finances will not undergo the scrutiny of a co-op or condo board.
  • More freedom to renovate as you please , within the limits of building code and, if youre in a historic district, the rules of the Landmarks Preservation Commission

Cons:

Sublet Restrictions In A Co

What is the Difference between Financing a Co-op vs. a Condo in New York City?

Stocksy

Most co-ops have very strict policies about subletting, which does not make them an ideal investment opportunity and can present a serious challenge if your job suddenly relocates to London, for instance. The rules vary, but owners are usually allowed to sublet their apartment for no longer than 1 to 2 years in any 5-7 year period. The board also gets to approve your tenant and charge you a fee for subletting.

Condo sublet policies are far more liberal. While there may be rules against short-term sublets , there is usually no outside limit nor do boards have the right to turn down a tenant unless they exercise that right of first refusal and lease your apartment themselves. This makes condos ideal if you are looking to buy strictly for investment purposes and rent out your apartment year round. But just like a co-op, the application fees, move-in fees, processing fees, etc., can range from a few hundred to a couple of thousand dollars extra that you or your potential tenant will have to pay. And, if you do make a home in your condo, you will be living in a building with a more transient population than a co-op.

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