In order to buy an apartment in NYC, there are a lot of things to consider. If you have already made your decision that you are going to buy the apartment, there are many things you need to have in mind. Most people struggle with their first-time purchases, but this doesn’t have to be a stressful experience. There is plenty of advice for beginners in this domain. It is important to know that real estate in NYC is complex. However, if you have a realistic set of expectations, everything will be easier for you.
What to expect when buying an apartment in NYC?
If you want to buy an apartment in NYC, you should be aware of all the pros and cons of the way of life in this city. It is also useful to know how to search for an apartment and for what kind of an apartment. The real estate market in NYC is competitive and complicated. This can be confusing for many buyers and it makes them nervous.
It is expensive to buy an apartment in NYC
Compared to other cities, NYC is expensive in many ways and you should know what to expect when moving there. Apartments are more expensive than in other cities. A co-op apartment can cost approximately $800,000. This is much more than the average cost of around $200,000 in other places in the United States. Additionally, there are closing costs that need to be paid when buying an apartment and these are 2-3% on top of the price of the apartment. This amount is not insignificant and should be taken into consideration in advance.
The real estate market in NYC is highly competitive
You have to bear in mind not to get attached to a certain home because it is possible that there are other people interested in buying that property too. Many of these people will offer to pay more than the price. This may lead to a bidding war, which is common in NYC. For this reason, your search for the perfect apartment might take more time than you expect.
Different kinds of apartments in NYC
If you want to buy an apartment in NYC, you have to make a choice whether you want to buy a co-op or a condo. Apartments in NYC are mostly separated into co-ops and condos. It is essential to choose the one that works for you and for your budget. Co-ops are usually older compared to condos because most were built prior to the 1980s. On the other hand, there is a greater choice of co-ops than of condos. Almost 85% of the apartments in NYC are co-ops. Moreover, co-ops are cheaper for different reasons, such as amenities and ownership. Condos are newer and better equipped, so the quality is higher.
Ownership of apartments in NYC
When buying a condo, you are the owner of the apartment, but when buying a co-op, things are different. When it comes to co-ops, there is a corporation which owns the building and you get shares in it and a lease that allows you to live in the co-op. There is also a board of directors who can decide whether you are suitable for living in the co-op. The board consists of volunteers who are residents and manage the building. They will check your background and your finances and they have the power to evict you. Judging from this viewpoint, if you want to buy an apartment in NYC, it is better to buy a condo, because you own it and you cannot be evicted. Also, you can buy to let and become a landlord. This will pay off in the long run.
Additional costs to living in your own apartment
When you buy your own apartment in NYC, there are maintenance fees which are due monthly. This is something you need to consider and it also differs for the co-op and for the condo. The common charges for the co-op include the operating expenses for the building and property taxes that apply to your share. Common charges for the condo exclude property taxes and you need to consider that.
Moving to your new apartment in NYC
There are many things to consider when moving and you should definitely choose the right moving company. These people are professionals and they will prepare you for the move and make everything go smoothly. If you ever used to live in Chicago and had to move, you should know that www.ampolmoving.com is a company which offers the best possible service. Now, you need such a company in NYC as well.
Here are some useful tips to prepare you for the move:
- If you want to buy an apartment in NYC, you will have to move and be very organized. It is important not to waste, time, money and space on unnecessary things.
- Hiring a good moving company is advisable because it will save you the trouble.
- Give things you no longer need to charity and do good while moving.
- Avoid any work that is not necessary. For example, pack your clothes along with the hangers because that will save time.
- Pay special attention to things that can easily be broken and pack them safely.
Pros and cons of buying an apartment in NYC
Many people chose to rent an apartment, but there are benefits for people who want to buy an apartment in NYC. One of the benefits is that it might be better to pay the mortgage in order to own a property than to pay rent to the actual landlord. There are tax benefits, which means that apartment owners do not include property taxes or mortgage interests in their income statements. Additionally, it is usually much more comfortable to live in a condo or a co-op than in a rental apartment. On the other hand, it can be very expensive to buy an apartment, especially in New York. You, as an owner, will have to maintain the apartment and pay for any repairs. It is a commitment that is long-term.