New York City has some of the most expensive real estate in the country. The price of a small apartment in NYC is equivalent to a good mid-sized home with a sprawling lawn elsewhere.
Upfront costs here are extremely prohibitive, then once fees and taxes are factored in, it becomes clear why New York City will continue to be a renter’s market far into the future.
For buyers still set on owning an NYC apartment, some key aspects have to be weighed and considered.
Rent vs. buy debate
New York is a renter’s market for a hefty financial reason. Monthly rent in Manhattan has a median value of $3,450, according to Zillow. That’s a high price to pay, but it’s negligible when compared with the median home value in Manhattan of $1.2 million.
On top of that, New York apartments also require buyers to meet a minimum down payment of at least 20%. That’s about $240,000 upfront for the home value above.
A generous take-home income and considerable savings are necessary for serious NYC apartment buyers.
Settling in a New York neighborhood probably won’t be an overnight decision, particularly since ten years is the minimum amount of time (in Manhattan, specifically) that buyers have to hold on to a property for their purchase to have made sense over renting.
Curbed NY has useful blow-by-blow guides that will make researching on New York’s five boroughs less of a mountainous task.
Co-ops and Condos
Apartment buyers in New York will inevitably have to choose between co- operatives (co-ops) and condominiums (condos). Each type comes with its own set of pros and cons.
Co-ops are older, account for roughly 85% of all apartments in New York, and are affordable by the city’s standards. But in lieu of outright ownership of a unit, a co-op gives buyers shares in the company that owns the apartment building and drafts leases that gives a buyer the right to live in the apartment
Ownership is more cut and dried for condominiums. Buyers directly own their condo units and generally deal with less stringent application screenings than co- ops. Condos do cost more, but for the increase in price, buyers receive more modern amenities and larger living spaces.
One last point to consider is the extent of control of each type’s board of directors. The powers of a co-op board are far-reaching. Every owner in a building has to get the board’s approval, must undergo extensive background checks as a result, and may be evicted by the board if it rules against an owner. Condo boards are not as stringent. There’s no approval needed to reside in a unit and owners cannot be voted out.
Looking for the perfect luxury apartment in New York can be quick and hassle- free with the help of Danny Nassi and the Nassi Team. Call 917.239.1124 or email dnassi(at)bhsusa(dotted)com so you can start on your goal for the NYC apartment of your dreams.