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How is a Manhattan co-op different from a condo part 3?

In this continuing series we will take a look at a couple more differences between co-ops and condos.

1- Co-ops tend to be located in prewar buildings while condos tend to be newer, shinier and more full of amenities. So if you love prewar lobbies, crown moldings and other details of prewar buildings, you probably will be looking at more co-ops. Almost all new offerings in the last 10 years plus are condos so condos tend to satisfy the wants of Manhattan buyers who are looking for newer buildings with amenities like swimming pools, roof decks, bowling or golf simulators. Some co-ops will have nice amenities as well but very few co-ops have been built in the last 20 years or so.

2- If you are a foreign national or US based investor, condos will most likely be your choice. Co-ops tend to examine a plethora of documents as previously mentioned including US credit. Since a co-op can turn down someone without providing a reason, if you are foreign national purchasing as a primary residence or a pied-a-terre, your safer bet will be a condo. Also, if you are purchasing for investment, almost all co-ops will require you live there first then there will be restrictions for how long you can rent.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.

Manhattan co-ops versus condos part 2

There are many differences between Manhattan co-ops and condos and in this series we take a look at a couple at a time.

1- Condos typically let you rent your apartment out without limit. So if you experience a job change and do not want to sell, you can rent out the apartment without an issue. In a co-op typically, you can rent out 2 of 5 years and then need to move back or sell.

2-Co-ops normally have higher monthly carrying charges than condos but lower prices. For example a 2bd/2ba co-op on the upper west side of about 1100 sqft might cost you  $1.5 million and have monthly charges of about $2900. A similar condo might run you $2.1 million but the monthly charges might only be $2000.

Price differences, and ability to rent out are just two differences of the many between co-ops and condos in Manhattan.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.

Does it make sense to buy in a land lease building?

If you are thinking of buying in a building where they lease the land below the condo, only do so if there are sufficient time left on the land lease, meaning 30 years or more and you understand fully the risks.

In general, the land price can skyrocket at the end of the land lease in the case where the owner is a private individual or company so have an attorney very knowledgeable in these matters advise you. Also, have a buyer broker who knows what questions to ask to save you unnecessary attorney expense. How much does the land lease go up annually and for how long are those rates locked in?

In Battery Park City, the owner of the land leases of all the buildings is the Battery Park City Authority, a non profit set up to create and preserve the neighborhood of Battery Park so there is not an interest to raise the rents beyond the realm of reason. Having said that, you and your broker, plus later attorney should exercise caution and make sure that you are getting exceptional value for your purchase.

For example, as a result of paying rent on the land, your monthly charges might be higher than a typical Manhattan apartment.  If you are going to be paying a higher than normal monthly charge then the apartment should be less expensive than something similar where the monthly charges would be on par with Manhattan averages. Also, you might not see the typical appreciation that you would see on other Manhattan apartments.

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The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.