Moving to NYC can bring a lot of challenges and decision making. Choosing the right neighborhood, finding a job, fulfilling your lifestyle needs, etc. However, when buying an apartment in NYC, everything gets more serious compared to renting. You can’t change your mind that easily after you get the keys, therefore this task needs to be done right. If you are a first-time buyer, you may find the whole process confusing and difficult. Luckily, we are there to help you out. Here is a handy list of tips for buying an apartment in NYC. You will be sure that you’re doing the right thing, and moving into the place of your dreams.
Face the fact – NYC is expensive
To make things easier and save a ton of time searching, be sure to face the fact no.1 about NYC – housing is expensive. It’s a booming economy and a rich offer of jobs affected the housing market and brought a lot of new people into the city. When it comes to renting an apartment in NYC, the median rent of a 2-bedroom apartment is around $3500 – which is very costly compared to the national average of around $1500. When it comes to buying an apartment in NYC, the situation is even more serious. For example, an apartment in Brooklyn can cost you $ 800,000 – 1,000,000. And you shouldn’t forget the downpayment, too – which is around 30%.
So, to deal with all these crazy numbers, you need to have a strategy. First, you need to save some cash – start immediately. Buying a house includes a lot of hidden costs, so be sure to have some extra cash on hand when you start this adventure. Another thing that can help you pay less when buying an apartment in NYC is to choose a location that is not gentrified yet. These places are more affordable and can become more valuable in the future – which once happened with Soho, for example. So be smart, and avoid hot places in the city, but look a bit further in the future.
Deal with the doubts
It’s okay to feel insecure when buying an apartment in NYC. The prices are going up and it is a huge investment. That’s why you need to think about why you are thinking of purchasing a place. Think about all the good reasons to invest in a NY property and your own necessities. Consider how long you will be living in NYC and is buying an apartment so expensive a good idea? Take your time while you browse the market before you make any harsh decisions.
Go through the preapproval process
One of the most important tasks in buying a home is getting preapproved. Only after it’s finished, you’ll have the idea of what you can actually afford in NYC. You need to get a lender to go through your income and do other necessary checks and let you know what you can do with the money. Of course, be aware of that number – it’s the most expensive price you can afford. Be realistic about your financial possibilities and don’t go over the limit.
Choose the right type of apartment
When buying an apartment in NYC, you will have to choose between a co-op or a condo. Each of these has its pros and cons, but here are the main differences you should know at first. Buying a condo is similar to buying a family house. You become the owner of the whole unit and get a deed to the apartment. On the other hand, a co-op apartment is in the ownership of a corporation. The buyer is referred to as shareholder or tenant, which means more lawful protection. Also, co-ops are generally older buildings, so if you are into a more modern home space – condos may be what you’re looking for.
Be aware of the trends
If you are not in a hurry to buy an apartment, you should definitely know what’s going on in the real estate world before you make a purchase. Be sure to take a look at the NYC real estate trends so you get to know the atmosphere on the market and choose the best moment to buy an apartment.
Consider buying an apartment with someone else
Another tip for buying an apartment in NYC is to listen to the New Yorkers. What happens more often these days is that they are buying an entire home with someone they know really well. It could be your brother, sister or even a good friend. Yes, sharing a home is not the best option there is, but if you team up, this can be an amazing and affordable choice. It’s an easier way to the NYC real estate, which can give you the opportunity to buy a perfectly good apartment in a house with a backyard.
Once you’re done with buying an apartment in NYC, it’s time to move to the location. Even though the hardest part is finished, you need to carefully plan your relocation, as well. Among all the tips on settling down in this amazing city, having a safe relocation is the most important one. Hire the best local help possible – ensure a quick, stress-free relocation. Most of the people who come to NYC for the first time find it difficult to move by themselves. That’s why the skillful local moving company is all you need. Also, be sure to plan everything in advance so you don’t end up moving in a hurry and making mistakes. Remember, safety first!
When buying an apartment in NYC…
… don’t forget your lifestyle and needs, that’s most important. Make sure you pick a place that will make your life easier and happier. Buy an apartment close to your job, to reduce commute time and have more free time for yourself. Location matters as well – make sure the things you like the most are nearby, so you can enjoy your days whenever possible.
Lisa Roberts is a long-time real estate expert. For the past two decades, Jack has worked for a large real estate company and he is an expert when it comes to investing in rental real estate. Currently, he lives in Brooklyn with his stay at home wife and two daughters. On the weekends, he prefers to spend time with his family, since on workdays he works long hours. Jack’s plan is to invest in rental real estate and retire early.