TYPES OF BUILDINGS

New York City real estate is a separate animal filled with its own terms and insider knowledge. Where do you want to live and what type of NYC real estate do you want? These are the questions to determine when embarking on a search for New York City real estate. Different types of buildings make up New York City Real Estate, below is a sampling of the types of buildings you will encounter when you embark on your NYC real estate search.

NYC Real Estate

COOP - A coop is a building unique in its popularity in NYC Real Estate. Coops make up around 80% of the NYC real estate sales landscape. You purchase shares of the cooperative corporation which entitles you to a proprietary lease; you additionally will be responsible for paying monthly maintenance fees divided amongst owners which cover the costs of maintaining the building, a percentage of which is tax deductible. You must pass board inspection which entails a detailed review of your finances and an interview. Most coops require you make a down payment of at least 20%, have liquid assets totaling 1-2 years in mortgage and maintenance payments, and have a debt to income ratio of 25%-35%.

CONDO - Condominiums are quickly growing in numbers in NYC real estate, with the influx of new development condo units coming to market. You purchase a unit in a condo which you control and own outright, down payments are usually 10% and there are no financial restrictions. Your ownership requires you pay monthly common charges which cover the cost of maintaining the building and your real estate taxes. Condos also have a board which reviews applications for new purchasers and can exercise the right of first refusal, which means they have the first right to match any offers on an apartment, condo boards rarely exercise this right.

CONDOP - A condop is a hybrid building that often causes confusion in New York City real estate. For prospective purchasers of NYC real estate the easiest definition of a condop is a coop that is run like a condo. Condops have no board approval, you can sublet your unit and enjoy the freedoms of condo ownership, but the benefits of paying lower closing costs associated with a coop, and you pay maintenance to maintain the building like in a coop. Typically there is a commercial portion of the building that does not allow it to be classified as a coop.

RENTAL - 80% of properties in New York City real estate are rentals. An agreement is reached between an owner and a renter to lease a property. Renters don’t have the responsibility that comes with maintaining a home. Renters do not face risks should an apartment lose value. Renters never receive monetary returns on the money they pay each month, and there are no tax deductions. Renters live on someone else’s premises and are subject to the rules and regulations to use their property.

TOWNHOUSE or SINGLE FAMILY - Your own private piece of New York City real estate. Owner is issued a deed and solely covers all costs associated with the building including real estate taxes. The real estate taxes are based on the estimated value of the property, so when a property is sold the real estate taxes will be reassessed.

TENANCY IN COMMON -A type of joint ownership of NYC real estate property by two or more persons. Each owner owns a percentage of the building and the use of one of the apartments in the building, according to their Tenancy in Common Agreement. Owners pay maintenance that covers the shared expenses in maintaining the building including the underlying mortgage. Rules are agreed upon by the owners. This type of ownership is rare.