Hire A Real Estate Attorney
One of the most commonly misunderstood topics around how to buy an apartment in NYC is when to bring on a real estate attorney. Ideally, you should have a real estate attorney lined up before youve submitted an offer.This way, when your buyers agent submits an offer he or she can include your attorneys contact information in the offer email. This will make your offer look that much more credible to the listing agent, because it demonstrates additional seriousness on your part.
However, if youre a procrastinator or simply busy as most New Yorkers are, you may only get to this part after you have an accepted offer. At this stage, its imperative to quickly interview and hire a seasoned and professional real estate attorney so there are no delays. Read our guide on questions to ask your real estate attorney when interviewing different lawyers.
Youll want to bring on an attorney ASAP after you have an accepted offer as the sellers attorney will be waiting to send your attorney a draft of the purchase contract. Furthermore, the listing agent will need your lawyers contact information for the deal sheet. Circulating a deal sheet to the brokers and lawyers representing each party formalizes an accepted offer and puts all parties in touch with each other.
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.
Cost Of Living In New York Ny 2021
New York City is a cultural hub, financial center, and media hotbed with something for just about anyone. New York City is the arts. It’s fashion, education, technology, entertainment, sports, and more, all rolled up into a neat five-borough package.
Known for its legendary skyline and status as a bonafide megacity, New York City draws thousands of new residents every year.
Of course, every new resident of the Big Apple must contend with a high cost of living. It’s difficult to live comfortably in a city that requires you to spend most of your paycheck on rent.
However, it is possible to successfully make the move to New York, provided you take care to plan your budget thoroughly.
This guide will help any new prospective NYC resident build their budget to live comfortably in the Big City. Here’s everything you need to know about the cost of living in New York City.
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Cost Of Food In New York
According to Numbeo.com data from May 2019, groceries in New York City usually cost about $471.34 a month, per person. For the U.S. as a whole, the average is almost $150 cheaper, at $324.20. Of course, New York City is famed for its restaurant scene, and those who choose to dine out regularly will see their food budget soar.
There are a number of reasons that contribute to why food and produce is so expensive in New York City. Perhaps the strongest consideration is that the companies that sell the food are forced to pay much more for commercial leases and workers wages than in other parts of the country. Delivering food can also be especially difficult in Manhattan, as its a densely populated island.
Establish Your Search Criteria
Think long and hard about what youd like as well as what you absolutely can and cannot have in your next home. For example, do you need the open air charm and high ceilings of a loft ? Or do you absolutely need distinct bedrooms because you have children? Is an elevator or a live-in super a must have?
Even if you need a set number of bedrooms for your family, you should still consider lofts and apartments with fewer bedrooms simply because many of them can be easily converted to have additional bedrooms.
Do you have a preference between co ops vs condos? Most investors and foreign buyers will skip over co ops due to restrictions on subletting and the lack of real property rights.
However, many local New Yorkers end up buying a co op simply because they are typically 10% to 40% cheaper than condos of comparable size and quality.
Keep in mind that co ops also require a lengthier purchase approval process. Youll have to submit an intrusive co op board package as well as pass a coop board interview. The thought of your neighbors having control over your life and knowing every detail about your personal and financial history is too much to stomach for many people.
However, not all listings will state a square footage, and this is especially the case with coops. Therefore, if you screen for listings that are 1,000 SqFt or larger, youll miss a ton of co-op apartments that dont have square footage listed.
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What Are The Costs Of Buying An Apartment In Nyc
The largest costs of buying an apartment in NYC are your buyer closing costs and your down payment. Since the down payment goes towards your home equity, its not really an expense but rather just a cash flow consideration.
The true costs of buying an apartment in NYC are simply your closing costs and the value of your time and emotional energy invested in the search process. Buyer closing costs are lower for co-op apartments compared to condo apartments, especially if youre taking out a mortgage.
Co-op buyers pay fewer closing costs than condo buyers because many buyer closing costs apply only to real property, and co-ops are not considered to be real property. We explain how the ownership structure works for co-op apartments in this article.
Pro Tip: Estimate your buyer closing costs in NYC with Hauseits interactive closing cost calculator.
Apartments For Rent In New York
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Other Expenses To Consider In New York City
The budget for your move to New York City should be airtight, meaning you’ll have to account for the expenses that typically get forgotten on most budgets.
We’ve got you covered with an in-depth look at the hidden costs of living in New York City.
- Sales Tax: The combined city and state sales tax rate in New York City is 8.5%, but can vary depending on what you purchase and its cost.
- Income Tax: New York State levies an income tax rate on a sliding scale. Depending on your income, you can expect to pay anywhere from 4% to 10.90% in income tax. Additionally, you’ll have to pay the city’s imposed income tax which ranges from 3.078% to 3.876%, depending on your income.
- Parking Costs: The average cost of monthly parking in New York is $570 per month or $6,840 annually. You’ll have to consider this cost on top of the 10.375% tax and an additional 8% surtax on parking, garaging, or storing cars in Manhattan.
Connect With An Experienced Buyers Broker
Its always free for buyers to work with a real estate agent.Buyers agents earn commission from a split of the commission paid by the seller. The seller pays a fixed, typical real estate commission in NYC of 5% to 6% of the purchase price. The seller will pay this commission regardless of whether you have a buyers agent or not. Therefore, if you waive your right to representation by an experienced buyers broker, you simply hand it all to the sellers agent who will earn a windfall double commission .
However, just because having a buyers agent is free doesnt mean you should work with just anyone. This is especially important if you are considering working with a friend as a favor.
Keep in mind that this favor you are casually handing away is worth 3% of the sale price. What are you getting for it?
Not only should you work with an experienced and trustworthy buyers broker whom you can easily communicate with, you should also work with a broker who will discreetly rebate you a portion of the commission that he or she earns.
Hauseits brand name broker partners will rebate you $20,000 or more on average of the buyers broker commission at close. Best of all, since none of our broker partners openly discount or tarnish their reputations in any similar way, no one will know youre getting a better deal! Skip the embarrassment and safely save money on your purchase without risking your deal!
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Tips For Your Move To New York City
- Managing the high cost of living in New York City is easier with the help of a financial advisor. Finding the right financial advisor that fits your needs doesnt have to be hard. SmartAssets free tool matches you with financial advisors in your area in 5 minutes. If youre ready to be matched with local advisors that will help you achieve your financial goals, get started now. For more information about the financial advisor scene in the city, check out SmartAssets list of the top financial advisor firms in New York City.
- Moving to New York City is stressful enough on its own. You wont want to worry about how easily youll be able to access your money. Here are a few banks in the Big Apple to check out: Quontic Bank, NBT Bank, Shinhan Bank America, Signature Bank and Metropolitan Commercial Bank.
The Most And Least Expensive Neighborhoods In New York City
The rent in New York City can vary by thousands of dollars across just a couple of blocks, so it’s important to determine what you can afford and what you like to do when you’re apartment hunting in New York. Places on the west side will generally cost more than apartments east of Central Park.
And the further south you go below Midtown, the less you can expect to pay in rent. And don’t forget to check the outer boroughs. Brooklyn, Queens, Staten Island and The Bronx all offer more for your rent money in terms of value.
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Show Up On Closing Day
The final step for how to buy an apartment in NYC is typically the easiest. Everything should have been already negotiated, and you will have gotten a clear to close from your bank to proceed with the closing. The lawyers will schedule the closing, and it will typically take place at either the sellers attorneys office or the managing agents office.
There will be many parties in attendance on closing day including the banks attorneys, the buyers attorney, the sellers attorney and a closing coordinator from the title company. The buyers broker and the sellers broker may also be present, although they often only show up near the end if at all to pick up their commission checks1. Thats because brokers dont have a role at closing, and if theyre there at all its for moral support only!
Your lawyer will guide you through all of the documents youll need to sign as well as handle all of the checks and necessary payments.Your lawyer will typically have provided you with a spreadsheet of all of your exact closing costs before closing day. This spreadsheet is typically called a closing statement for real estate transactions in NYC.
Once all of the necessary documents have been signed and checks have been distributed, its time for you to finally take the keys to your new home!
How Much Rent Can You Afford In New York City
New York, New York, if you can pay rent here, you can pay rent anywhere. But how much you shell out can skyrocket, depending on what address you end up calling home.
But hey, dont worry. Theres a perfect apartment out there for every budget. I myself have lived in five rentals in two boroughs at varying income levels. And I loved each one, whether it was a duplex in Brooklyn or an Upper West Side walk-up.
The first step, of course, in finding your perfect New York City apartment is determining how much rent you can pay. So before you start looking at subway maps and comparing the Bowery to Bed-Stuy, lets crunch the numbers.
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How Much Does Eiza Gonzlez Pay Out Per Month For Her Luxury Apartment In New York
According to the American newspaperThe New York Post, Eiza González pays $ 8,300 per month for her luxurious apartment located in Manhattan. The notice to take residence was open to the public for two weeks.
It is necessary to specify that the actresss apartment is on the 56th floor of the Sky building which is located in the heart of Midtown West in the hells kitchen neighborhood, famous for hosting the best theaters and restaurants in the city.
Furnished Apartments In Staten Island
More Attractive Areas in New York City
Furnished Apartments in SoHo
The cobblestone streets of SoHo are lined with some of the best shopping and dining haunts in all of New York City. This fashionable area of Lower Manhattan is also home to a number of trendy galleries and bustling bars, and is perpetually popular with New Yorkers. Accommodation in the neighbourhood is highly coveted, so unless youre willing to splash out on rent you may have to compromise a little on space. For great furnished apartments in SoHo, youve come to the right place.
Furnished Apartments on Upper East Side
Extravagant and extrovert, the Upper East Side is quintessential New York. You can expect to be greeted by jovial doormen outside exquisite hotels and come across socialites doing a spot of window-shopping. Throw in a wealth of restaurants, museums and local parks and youve got a picture-perfect image of New York thats ideal for both work and recreation. Due to the desirability of the neighbourhood, furnished apartments on the Upper East Side can go pretty quickly, so hurry!
Furnished Apartments on Upper West Side
Furnished Midtown Apartments
Furnished Apartments in Battery Park City
Subletting in New York City
Studio, 1,2 and 3 Bedroom Apartments in New York City
1 Bedroom NYC Apartments
2 Bedrooms NYC Apartments
3 Bedrooms NYC Apartments
New York City Public Transportation
About New York City
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Catch A Game In The City
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
What Is The Cost Of Living In New York City
Now that we’ve determined what we need to earn and what we can afford, we need to look at the rest of the numbers. Rent only accounts for part of your living expenses. You still need to budget monthly for utilities, internet, online subscriptions and more. And those costs can vary wildly depending on where you live.
- Overall: The overall cost of living in New York City is 148.6 percent more than the national average
- Groceries: The cost of living for groceries in New York City is 51.7 percent more than the national average
- Housing: The cost of living for housing in New York City is a whopping 461 percent more than the national average
- Utilities: The cost of living for utilities in New York City is roughly 5 percent less than the national average
- Transportation: The cost of living for transportation in New York City is 31 percent higher than the national average
- Healthcare: The cost of living for healthcare in New York City is about 9 percent more than the national average
- Miscellaneous goods and services: The cost of living index for miscellaneous goods and services in New York City is 33 percent more than the national average
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