Buying a condo in NYC. What should I know?
June 22, 2015 6:26 PM Subscribe
Yes I meant a condo not co-op. What does a first time condo buyer need to know?
The areas of NY I'm looking at have primarily condos rather than co-ops which is ideal for me because I plan on having others occupy the home during certain parts of the year. Some places have higher common fees and lower taxes...while others have higher taxes and lower common fees. Which is preferrable? I figured it's better to have higher taxes and lower common fees because the taxes are deductible... am I right to think this way? Does it matter if it's PILOT taxes or not?
The areas of NY I'm looking at have primarily condos rather than co-ops which is ideal for me because I plan on having others occupy the home during certain parts of the year. Some places have higher common fees and lower taxes...while others have higher taxes and lower common fees. Which is preferrable? I figured it's better to have higher taxes and lower common fees because the taxes are deductible... am I right to think this way? Does it matter if it's PILOT taxes or not?
As controversial as they are right now, pay attention to 421a tax abatements. Benefit from them if you can but be sure that you can stomach the real tax roll when try expire.
posted by Stu-Pendous at 6:50 PM on June 22, 2015 [3 favorites]
posted by Stu-Pendous at 6:50 PM on June 22, 2015 [3 favorites]
Many condos require you to pay a fee whenever someone moves in or out, make sure you are aware of that, if it exists. Many condos specifically disallow short term airbnb-style rentals, if that's what you mean instead. Try to get a competent broker and lawyer. They will help you navigate the process and be able to answer the questions you have.
posted by Phredward at 7:15 PM on June 22, 2015
posted by Phredward at 7:15 PM on June 22, 2015
Battle-hardened condo owner and former board member here (though in D.C.). A few things I wish someone had told me early on - and with the caveat that I know this can be impossible, depending on the market:
1. Ask the seller to provide at least the most recent financial statement provided to owners at the annual meeting (pref. two years, if this is possible). Make sure the numbers make sense and that their reserve is healthy. Look for special assessments, and whether they're being used judiciously and sparingly. Look for expenditures on repairs that may hint at larger, as yet unresolved, problems.
2. Try to get a copy of the by-laws from the seller, then , if you can, walk around the property and see if they're being enforced (eyeballing general maintenance and condition as you do so.) Make sure the by-laws address any issues of particular concern to you - renters, pets, noise, etc. - in a way you can live with.
3. If possible, try to assess how functional and engaged the board is. This can be hard (since obviously the seller and other residents have a vested interest in portraying things as rosy), but I've also found aggrieved residents LOVE to complain about dysfunctional boards. A shitty board can cause you no end of headaches and threaten your investment.
posted by ryanshepard at 7:20 PM on June 22, 2015 [1 favorite]
1. Ask the seller to provide at least the most recent financial statement provided to owners at the annual meeting (pref. two years, if this is possible). Make sure the numbers make sense and that their reserve is healthy. Look for special assessments, and whether they're being used judiciously and sparingly. Look for expenditures on repairs that may hint at larger, as yet unresolved, problems.
2. Try to get a copy of the by-laws from the seller, then , if you can, walk around the property and see if they're being enforced (eyeballing general maintenance and condition as you do so.) Make sure the by-laws address any issues of particular concern to you - renters, pets, noise, etc. - in a way you can live with.
3. If possible, try to assess how functional and engaged the board is. This can be hard (since obviously the seller and other residents have a vested interest in portraying things as rosy), but I've also found aggrieved residents LOVE to complain about dysfunctional boards. A shitty board can cause you no end of headaches and threaten your investment.
posted by ryanshepard at 7:20 PM on June 22, 2015 [1 favorite]
If the building has a property manager at least meet them. I rented in a condo when I first moved to Chicago and liked the physical space but the building manager was such a supreme dick that we changed our minds about buying a unit in the building. On the initial meeting when we picked up our keys he was on the phone the whole time and barely even grunted at us. That was probably the best interaction we ever had.
posted by srboisvert at 7:40 PM on June 22, 2015
posted by srboisvert at 7:40 PM on June 22, 2015
You might be interested in checking out the book Gimme Shelter, which details a New York family's 3 year search for a home they could afford to buy. I want to say the author and her family ended up with a condo, but I don't recall specifically.
posted by Michele in California at 1:49 PM on June 23, 2015 [2 favorites]
posted by Michele in California at 1:49 PM on June 23, 2015 [2 favorites]
How to buy an NYC apartment by brickunderground; this is a 101-level article, with links for both co-ops and condo specific advice; you can fall down the rabbithole here....
posted by lalochezia at 7:16 PM on June 23, 2015 [2 favorites]
posted by lalochezia at 7:16 PM on June 23, 2015 [2 favorites]
This thread is closed to new comments.
Taxes plus high fees might actually equal (or even be lower than!) taxes plus low fees plus utilities.
posted by easily confused at 6:37 PM on June 22, 2015 [1 favorite]