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.
Citibike has finalized the locations of new bike stations for Manhattan’s Upper West side. Not too much has changed according to DNAinfo from their proposed plans submitted for public feedback. One station that was slated for 100 street west of Columbus avenue was moved to east of Columbus on the northern side of the street. There will be several stations along Central Park west including one of the western side of CPW on the sidewalk between 97-100 street adjacent to Park West Village.
Initially, the stations were expected late summer but now it appears they will be installed by early 2016. Click here for the map of the stations.
On the Upper west side we have southbound protected bike lane on Columbus avenue but with Citi Bike set to install new stations throughout the UWS, more bike lanes are needed. According to DNAinfo, Community Board 7 voted in favor of pushing the DOT to create a northbound bike lane preferably on Amsterdam avenue. Opinions are mixed as to if Amsterdam avenue could afford to lose a lane of traffic.
This Sunday’s NYT Ask Real estate column talks about a shareholder in co-op who after discovering that their pool will be closed for the summer, threatens to withhold maintenance. The article goes on to point out that rightfully so that is not a good idea. Likely, that person will incur all sorts of charges including legal fees. Also suing the co-op means suing yourself as well and paying for the co-op to defend itself against your suit so that does not make sense either. The best advice given is to examine the bylaws to determine is leadership on the Board is lacking and consider ousting these members. It’s really a no-win situation and none of the above will open the pool in time to show off your washboard abs…
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→
According to HauteLiving, the highest penthouse in NYC is no longer on the market thanks to a Saudi Arabian billionaire-Fawaz Alhokair. The 8,255 square foot condo has 6bd/7bathrooms and a wood burning fireplace. $95 million was the reported price. If and when this deal closes, it will be the 2nd most expensive residential apartment sold in Manhattan behind the purchase of two floors atop the poster child for Billionaire’s Row: One57.
Mr. Alhokair’s company operates more than 2100 stores in fashion including having licenses for Zara, Banana Republic and Gap.
432 Park avenue is currently the tallest residential building in the Western Hemisphere. Prices start at $17mm up to $81mm for another penthouse. The building will have 125 units spread over 96 floors.
This one bedroom/one bath condo has entered the market at the low asking price of $549,900. It is a foreclosure which in this case means it’s already owned by the bank. It features a nice sized kitchen, wood floors, solarium and a loft bedroom. The Buckingham East is a doorman building. Monthlies total about $1800 per month. We anticipate this will be sold to the best offer over the ask. Offers are due in by the end of this week at the latest. View the listing below.
According to DNAINFO, Central Park above 72 street will become car free permanently. Local politicians have been pushing for this change for the last several years. Mayor DeBlasio has now made both Central Park and Prospect Park car free. The DOT in New York did research to see if there would be impact of making the park car free and found there would be little or no impact on traffic congestion. The transverses will remain open for vehicles.
Legislators failed to come to agreement on new rent regulation laws by Midnight Monday but approximately 2 million people in NYC are being told that their leases remain in effect until the lease term ends. Also according to 7online, Governor Cuomo will keep the legislator in session until an agreement is reached. Democrats are in favor of continuation of rent laws to protect many New York city residents while Republicans want to extend the existing laws for 8 years. Of course building owners affected by rent control laws want deregulation and would make a windfall if that ever happened.
The Governor has warned any landlord who attempts to exploit the temporary end of the rent laws, that they will be prosecuted. According to reports, 311 has been swamped with phone calls of rent controlled NYC tenants who want to know what their status is right now. Mayor DeBlasio considers this an emergency along the lines of a major snow storm. What do you think they should do with the rent control laws?
According to NYT, there are about 100 building in Manhattan, that have land or ground leases. Due to the rental payments they need to make on the land, they tend to have high monthly charges. Also, sometimes as in the case of Trump Plaza at 167 East 61 street, increases in the land lease can lead to a sharp inrease in the monthlies. With this on the horizon, the co-op Board at Trump Plaza decided to buy the land from the owner. In order to do this, there was to be a large assessment of several hundred thousand dollars to a few million for each apartment. Without the purchase of the land,due to a deal that Donald Trump made when he constructed the building, the maintenance figures would have gone so high that the apartments would have been worthless.
So it pays to excercise caution when purchasing in a building with a land lease. Although, according to the NYT article, there are some very sophisticated buyers who are purchasing in Land lease buildings. All of Battery Park city is on a land lease and as a result, values in some buildings go up generally less than the market as whole due to the high carrying charges. In Battery Park City, each building makes a different deal with the City so it pays to excercise caution and find out when the land lease is due to expire and estimate what the carrying charges will be at that time. Many buildings pay a percentage of the fair market value for the rental of the land. As a result, of the current sky high price of land, the land lease prices will spike up as well.
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
