Can You Afford to Buy a New York City Condo?

Almost all of New York City’s newer buildings are condos. Buying a condo is basically the same as buying a single-family home. Your deed guarantees ownership of the entire inside of the unit, including surfaces of the walls and floors. In addition, you share undivided interests in elements included with the building.

Purchasing a New York City condo can be stalled by the board of directors. This only happens if the group is opposed to the buyer coming in; however, the only way they can officially prevent you from moving in is by buying the unit themselves, which rarely happens.

Costs to Consider

In addition, the more amenities your condominium offers, the bigger the building and the more staff required to maintain the building, the more likely it is that you will have higher monthly costs that may continue to rise.

The structure of condo ownership isn’t too difficult, but some contracts are prone to a few quirks. Common charges include the mortgage payment, which does not include property taxes. This is very important to remember, especially because the government will send you a bill directly.

The down payment for your New York City condo will be around ten percent of the purchase price. The bylaws of the property owners determine this amount specifically. If a mortgage from a bank is required, then the down payment can be as much as twenty percent. If the buyer qualifies for FHA loans, the amount will only be three and a half percent.

When going through a bank and using a mortgage, the closing costs are typically much higher. The recording tax will be one point eight percent of the total mortgage amount if your loan is under five hundred thousand dollars. For around five percent of the mortgage price, your lender will also require title insurance protection.

Other Factors

It’s not surprising that despite all of the costs and the seemingly difficult purchasing process, most New York City condos have much better amenities than apartments. Many condos offer perks such as washers and dryers, roof decks, playrooms, and even quality fitness centers.

However, it is also important to consider location. Many of the newer condos were built during the most recent development boom, which means they will be located in potentially difficult areas such as Harlem, the Financial District or Midtown West.

It is expensive and difficult to locate affordable condos in New York's most desirable areas. Central Park West and West Village are some of the most challenging areas to get into these days. It is possible, however, to find the condo of your dreams with a certain amount of dedication, money, and timing.