Moving to New York is a life project that can be as exciting as it can be scary at times. Being accompanied by a real estate expert is a real guarantee of success. This is the reason why BARNES is always very attentive to the opportunities that the New York market may offer to its clientele of investors or looking for the right deal. Thanks to its network, BARNES can help you invest in an apartment in New York without charge or monthly tax for several years … even up to 10 years!
It is important to know that in New York, every owner of a condo must pay the condo fees (or “common charges”) each month.
These fees are often paid monthly to the building and correspond to the running costs of the latter, which will often provide its residents with a gym, a doorman, a swimming pool, maintenance of common areas, etc. The more services there are, the more the cost increases.
Thus, in Manhattan, these charges are on average $ 1.30 / sq ft or $ 14 / m2. In other words, for a 90 m2 apartment, it takes $ 15,600 / year.
In addition to these building charges, there is also the real estate tax (“Real Estate Tax”) which may vary from one building to another but which will be on average close to $ 1.20 / sqft ($ 13 / m2) . Or $ 14,400 for a 90 m² apartment.
These monthly charges and taxes, commonly called “Carrying cost” can therefore represent around $ 30,000 per year, or even $ 150,000 over 5 years, which is not negligible… Fortunately, these costs can be reduced considerably, or even to be entirely dispensed with!
Regarding property tax, it should be noted that some buildings benefit from tax reduction programs, thanks to the “421-A”, attributed by the city of New York to buildings that meet a certain number of criteria.
This allowance usually lasts 10 years, but can in some cases last 15 or 25 years, especially when the city wants to encourage developers to build in certain areas or certain types of buildings. The mechanism is progressive with total exemption in the first years (up to 12 years after delivery of the building) then a graduated increase in the Real Estate Tax until the program expires.
Note that 421-A benefits the building as a whole, and not a developer or owner, which is a valuable resale aid.
For example, if you buy an apartment in a tax-rebated building in the first year and sell it in the seventh year, your buyer will in turn benefit from the remaining three years of reduced taxes since the allowance remains with the property, and not with its owner.
BARNES can also advise you on certain buildings that combine the benefit of 421-A and exemption from condominium fees, which has the consequence of having a “carrying cost” of … $ 0!
Indeed, some condominiums in NYC offer the payment of your charges by the developer, as long as certain conditions are met. Thus, we can exempt from paying the charges of a 1 Bedroom for 5 years, or 10 years for a 3 Bedroom! And at the same time, benefit from all the many quality services of the building.
In this context, BARNES New York can allow its clients to take advantage of these opportunities and optimize their investment. Thanks among other things to a perfect knowledge of the New York real estate market, to the advice of our experts allowing the best negotiations as well as to the privileged commercial relations maintained with the most reputable developers.
The icing on the cake: the buyer’s broker’s commission is paid by the seller, even if the interests of the buyer have been defended in the negotiation!
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