Question to ask your realtor before buying an NYC apartment
Buying an NYC apartment is a huge deal. Buying an apartment in general is a big deal but NYC is a whole different level. So, before you go to an open house, familiarize yourself with the important questions you should be asking. You won’t have to return merely to ask the key questions, all of which are vital to your basic due diligence. The second time you decide to come back should be with a home inspector but we will talk more about that later in the text.
You need to know about land lease
It’s crucial to know the answer to this question before scheduling a viewing of a New York City apartment. The reason – several NYC structures sit atop lands that are not owned by the city. So, they have to make payments to the real estate owner in the form of ground rent. Leases in these properties often have set terms with optional renewals.
Many potential purchasers, including investors and international buyers, will be uneasy about purchasing a property situated on privately owned land. In case the land lease is not renewed or terminated for whatever reason, the landowner takes ownership of any improvements made by the tenant. Since this is the case, it is crucial to be aware of the ground lease’s remaining term and the conditions under which it might be renewed.
Knowing the proprietor is crucial. At the end of a property lease, landowners may be more difficult to work with. However, landowners with a charitable mission, like the Catholic Church, might be more amenable to working with you. Once you find all those things out you can think about planning a move.
If the selling agent doesn’t know the size of the apartment or if the flat is cooperative, the prospective tenant may give up trying to find out the size of the apartment. It is not uncommon for condo apartments to exclude square footage from their listings. We don’t like that. You have the right to know the exact number. Thankfully, there are means by which homeowners can investigate this on their own.
One of the first things you should check when buying an NYC apartment is the square footage. It should be included in the selling plan or other official building documentation. In addition, if you are looking at a condo, you may inquire as to the square footage shown on the most recent Notice of Property Value issued by the New York City Department of Finance. Dont worry, if the place turns out to be a bit smaller than you planned, you can always store your belongings safely in storage nearby.
This is crucial while looking for a coop to buy in New York City. That’s because most co-ops would rather have a permanent resident than a subletter or a seasonal one. Thus, the sublease policy for a given building may usually be found in the co-op’s house rules or bylaws. It’s customary for buildings to allow subletting for only two out of every five years, though this can vary from building to building. Most coops won’t let you sublet straight away, and others won’t let you sublet at all unless you can prove a financial difficulty. If you’re looking to buy a coop in New York City, this is a crucial factor to think about.
But what if you have to relocate in a couple of years? This is the most amazing destination in the USA. But people sometimes change their minds. Asking whether there are any costs associated with renting or subletting your apartment. Homeowners in coops and condos who want to sublet or rent out the apartment may incur a variety of expenses.
If you’re an investor looking to buy a New York City apartment, this is one of the things you have to ask when buying an NYC apartment. The reason for this is that significant sublease costs. They might significantly reduce the expected earnings. No one wants that obviously. When you rent or even sublease your apartment in some buildings, you may have to pay a fixed fee to the building’s management company. If this is a business for you, make sure to contact nycministorage.com. They will have useful tips for you in case you need any storage or people to assist you with similar tasks.
Maintenance and common charges
Common expenses for upkeep are similar to taxes. They can only be raised. In this city, they will never be lowered. Consequently, it is crucial that you comprehend the trend of upkeep cost increases over recent years. You can even see patterns. That way you will be able to predict the next raise in prices. If the cost of repairs and upkeep has been rising continuously, it may be an indication that the property is being badly handled and that the management lacks fiscal discipline.
In some cases, boards are made up of people who have never worked in the housing industry. They have no idea how much something like this should cost. As a result, the managing agent will seek annual salary increases and the contractors will charge exorbitant rates for any maintenance that is needed. This is all avoidable. If you pay attention that is.
The average person looking to purchase a property in New York City probably won’t be able to recognize the distinction between a condo and an apartment. Much less the difference between a co-op and a condo.
Nonetheless, if you’re looking to buy a co-op in the Big Apple, you should definitely find out if the building imposes a flip tax. This flip tax is typically paid by the person who is selling. It’s deposited into the building’s reserve fund, but it still represents an extra closing cost to consider. A portion of the sales price or a flat fee is both acceptable forms of the flip tax. The flip tax on a co-op typically ranges from 1% up to 4% of the transaction price.