According to WSJ, some parents are purchasing apartments for their college bound children. While this is not a new idea by any means, parents who do the math of paying rent while their children pursue their education, sometimes decide it makes sense to buy a place instead. At that point, some purchasers are also thinking of their retirement in Manhattan at the same time. Why wait 10 years or more when the prices will be higher? Purchasing now gives them a place for their college age children as well as place to eventually live in or use as a pied-a-terre. In some cases, parents may be planning when the children are several years away from college age. There was one example of a wealthy family purchasing in the famed Extell building One57 aka 157 West 57th street a few years ahead. Their daughter was recently born!
Consider these factors as well in your purchase:
1- If it’s a co-op will they allow college student children to live there? Many co-ops do not want their buildings turning into dorms.
2- A condo would be a much wiser investment since you or your children can rent it out without restriction.
3-What areas will appreciate the most over the next few years? My bet is on Harlem and upper Manhattan as well Hudson Yards area.
A reporter from NYPost, shares his experience is searching for his first apartment in Manhattan. He points out some of his early mistakes like going from broker to broker and neighborhood to neighborhood without first getting a pre approval. In the end, he had an accepted offer and backed out on that property before purchasing in a condo conversion in Upper Manhattan.
He advises with the help of real estate brokers cited in the article to
1- Decide on a nabe
2- Get a pre approval
3- Find a buyer broker
Also I would add to choose your real estate attorney well. Usually your buyer broker can help you with that. A real estate attorney usually chages around $2500 or so but some that do excellent work can be found for as little as $1250-$1500.
Additionally, beyond getting the pre approval make sure that the bank will finance in the building that you choose. Some buildings have sponsors that still own more than 10% of the shares(co-ops) or the apartments(condos) or a higher than usual percentage of tenants. This can complicate financing and is an area very often overlooked by many real estate brokers. This as a buyer can cost you time and money and add streess. So vet the building with your lender to avoid all of that! What are your tips for a first time buyer?
For many first time buyers of NYC co-ops, it can be an education to really understand what it means to buy as well as live in a NYC co-op. Here are some examples of differences between a co-op and condos which are closer to what most buyers are familiar.
1- Co-ops limit financing typically to 80% of the value of the property. So if you purcharse a co-op for $1million you can normally finance only $800k. Some co-ops will allow even less financing or no financing at all as is the case on some select buildings on Fifth avenue on Manhattan’s upper east side. Condos in some cases will allow as much as 90% loan to value. So a $1million condo can be purchased in some cases with as little as $100k down.
The newspapers and online blogs mostly cover the ultra luxury market and their supposed glut or balanced inventory depending on which report you believe. However, the starter apartment market is very low on inventory right now and there isn’t any relief in site. The only exception is apartments with very high carrying charges. Typically, first time buyers are more concerned with monthly payments than the more affluent neighbors. Continue reading Starter apartments in Manhattan low inventory→
I was reading a recent article and someone commented that NYC property is like a Swiss bank account for investors because it’s considered so low risk and certainly will go up in the future. But where do you buy and for how much? Should you get a loan or pay CASH? Here’s some advice that may help you to decide.
So let’s say you have $1 million just as an example and you want to invest. What are your options assuming you will not live there? Click through for guidelines.
With all of the talk of buying apartments to hide money, to shelter money or guard against currency devaluation or being expelled from your country because the Olympic ski jump was not finished on time, does it make sense to invest some of your capital in a Manhattan apartment? I think it pretty much always does given some factors. Continue reading Is it time to buy a Manhattan apartment for investment?→
Seems like a very silly question. The obvious answer is if the taxes are lower than usual, you should it buy it, no? Well, the answer is not that simple. Recently, on a showing of a convertible 3bd condo on 5th avenue, I contemplated the question myself. There are 8 years left on the tax abatement for this building. So that means in this case the taxes will go up 20% every two years until they reach the market rate for taxes for the area. I think this is a point that not every buyer truly understands.
News about the NYC real estate residential and commercial markets provided and interpreted by an industry veteran licensed since 1999. Brian Silvestry of BSRG Inc. Licensed real estate broker
