How much condo can i afford nyc

Co-ops, which are generally more affordable than condos, usually require higher down payments than condos. About 20 to 30 percent is common, though some require 50 to 60 percent of the purchase price, and a few rarified buildings demand all cash. In a co-op, the monthly maintenance fee includes property taxes as well as the costs of running the building. The expenses of running a building can vary dramatically.

One building might have a virtual doorman and no amenities, while another might have a swimming pool, a full-time doorman and white glove elevator service. I draw up detailed spreadsheets where my clients can look at the pluses and minuses of each building.

When apartments change hands in New York City, there are various taxes and fees associated with the deal. These are called closing costs and can run to tens of thousands of dollars. For buyers, they generally amount to 2 to 4 percent of the purchase price. Usually, boards will also want to see that you have at least two year's worth of monthly costs in cash, bonds and stocks after you close.

This is called post-closing liquidity. The local knowledge of an experienced broker—who can, for example, introduce you to buildings that put more emphasis on income than high down payments—will make your buying process significantly easier. I know immediately where to take clients because I know exactly where the building price points fall historically. If you deal directly with a listing broker, you may want to be wary of dual agency.

Keep in mind, the listing agent represents the seller, may not be loyal to you, and may advance interests adverse to yours. Did you know you can get cash back from your real estate broker? Correct — you can save with a commission rebate whether you are purchasing a condo or townhouse, or purchasing a co-op apartment.

Prevu is the real estate technology company on a mission to save people money when they buy a home. When you are spending so much purchasing an apartment in NYC, getting money back from Prevu is pretty sweet. Purchasing an apartment for the first time in NYC may seem overwhelming, but if you are already doing your research and preparing yourself for the process, you are ahead of the game. Make sure to ask questions and get advice from a local real estate agent.

CA DRE All rights reserved. Categories: Buyer. Related Articles. Prevu on Facebook. While the best time to buy in the rest of the country is toward the end of the summer, in NYC the ideal time is usually is usually the spring or the fall. Springtime is generally more competitive, but that also means buyers have more to choose from, since spring is typically when many new developments both condos and co-ops enter the market.

StreetEasy estimates that the best times to buy are between April and June, and in September and October. The worst time to buy is the winter months—December through February, to be precise—since during this time, there are fewer listings on the market, and as a result buyers are less likely to score discounts. The down payment is one of the biggest factor buyers have to consider when making a purchase. Plus, the lower your down payment, the less likely you are to find a lender for your home loan.

A 20 percent down payment is considered the benchmark, and being able to meet that threshold will greatly increase your chances to acquire a loan and lessen your interest rate. It is possible to find homes where you pay a lower percentage of down payment, particularly with some of the new condo buildings in the city, Geller says.

With lower down payments you will have to consider other factors, like getting a private mortgage insurance to bail you out in case of a default. You can also try your hand at income-restricted apartments located in Housing Development Fund Corporation HDFC cooperative buildings throughout the city.

They work similar to a co-op building in that the board will ultimately determine who gets to live there, but the apartments are reserved for low- and middle-income individuals and families. The sales price on these units can be no more than percent of the area median income, according to city guidelines.

The income restrictions change depending on the apartment type and the size of the family living in each unit. The downside to HDFCs is that they can often require higher down payments or all-cash deals. Here is a list of currently available units. In December , the city introduced new programs to make homeownership more affordable in the city. The program is expected to create 1, new homes over the next eight years.

Your broker will help you secure the best possible deal, and can assist you in bargaining for concessions. Brokers can be especially helpful when looking to purchase in a co-op building in NYC, as they will be more familiar with the requirements for that property and be able to give you a better sense of the ideal candidate. That money is usually included in the sale amount and split between the broker representing the seller and yours. Getting a real estate lawyer is even more critical in NYC.

Your lawyer will also be able to better advise you about potential concerns in your new building or home—noise complaints, building violations, and the like—as they go through the paperwork for that property.

A pre-approval letter is created by your lender based on your income and your credit score, and is usually prepared in under 30 minutes.