Condos NYC (Condominiums) are quite popular and common throughout the rest of the U.S.; however they are a rather new concept in the Big Apple. A condo apartment is real property – buyers get a deed just as though they were buying a house. Since this is real property, there is a separate tax lot for each apartment.
This means that condo owners pay their own real estate taxes for their property. An NYC condo owner will also pay common charges on a monthly basis. Common charges are similar to maintenance in a co-op; however, common charges include neither real estate taxes nor the building’s mortgage and interest because, by law, apartments in Manhattan that are condos, cannot have an underlying mortgage.
Financing a purchase of a condominium apartment is much more flexible that a cooperative apartment. In the past, buyers could finance up to 90% of the purchase price. Since the credit crisis, banks’ lending practices have become more stringent. A 20% down payment and stellar credit are needed to be able to get financing. Buyers should always consult a mortgage professional for current financing options.
While there is an application process, this is not as formal and intrusive as in a cooperative. The likelihood of rejection is minimal.
There is also greater flexibility in sub-leasing your apartment. This makes a Tribeca condo, or any other NYC condo ownership a better investment choice than a Tribeca co-op.
A NYC condo makes an ideal choice for non-U.S. citizens or for those with assets held outside the United States because co-ops are unlikely to approve those types of buyers.
A Condo in New York is generally more expensive (approx. 30%) than NYC co-ops for a number of reasons. There are fewer number of condominiums than cooperatives in New York City (approx. 75/25 ratio); the buying process is easier, the combined monthly charges and real estate taxes in a condo are typically lower than a co-op’s monthly maintenance charges; but mainly– because of its fee simple ownership rights to real property being the best type of ownership.
Work with a trusted, Luxury Manhattan real estate broker today for home buyer assistance, or to set up time to view all NYC condos today!
A full service broker with Rutenberg Realty 127 E. 56th St. New York, NY 10022.
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