Buy Smart. 7 Tips for Purchasing a Luxury Apartment in New York City
Purchasing a multi-million dollar luxury Apartment in New York City is no small undertaking. If you are lucky enough to have the cash to buy the Apartment of your dreams, it is critical to think long-term. You will invest a lot of money into this Apartment. It must make sense on a myriad of levels!
Buyers often fail to realize that a home purchase is one of the biggest investments they will make in their lifetime. People tend to scrutinize non-essential items such as restaurant choices, travel itinerary and other less critical endeavors. However, when it comes to spending the majority of your savings on a property make sure to choose the best Broker, Attorney and investment possible.
As we approach 2023, the market has started to change. We have seen an increase in interest rates and a hesitancy from buyers engaging in the market. Prior to the pandemic in New York City, Manhattan was a sellers market. However, the tide has turned drastically. While some new luxury condominiums in the finest locations are able to garner strong prices, other Apartments are harder to sell. Furthermore, there are now many new construction projects being developed in Manhattan, so be mindful of supply versus demand.
7 Tips to Buying a Luxury Apartment in New York City
- Think Investment. Not Emotion: Yes. We all get caught up with views, kitchen cabinets, swanky appliances and other eye-popping features. It’s no different than buying the flashy, gold Rolex of your dreams or the Burgundy Suit that may sit in your closet for the duration of time. Besides, it feels good at the moment to buy a jaw dropping unit, but is it practical? Will you get tired of the unit? An Apartment not only has to have style, but fit into your lifestyle as well. Remember, any property can be redesigned. If the layout is no good, it’s very difficult to change. Finally, make certain the Apartment leaves you with flexibility for the near future and long-term.
- Buy for Resale: Always think about resale. Does this Apartment only appeal to a single individual? Or niche buyer? The unit might seem great at the time, but when it comes time to sell it will put a chokehold on your future plans. Recently, I listed a stunning luxury Apartment in Gramercy, New York City. It has incredible views and tremendous natural light. But unfortunately, the Owner over-customized the unit and now it’s a white elephant. Finding a buyer is like a needle in a haystack. Again, never change the entire Apartment only to destroy the future value and limit the market.
- Crunch the Numbers: Just because you have the money doesn’t mean you should write a blank check to the seller. What are the comparable prices in the building? How long has the unit been sitting on the market? If you buy too high or purchase a bad investment, will you ever get your money out of it? Additionally, don’t forget to break out the mortgage calculator and crunch all of your numbers.
- Can it be Rented? If you have to relocate for work or decide to live in the suburbs, can this unit be rented? What is the building policy toward rentals? Is there a sublet fee? A Condo building is always better for purchase because it allows much more flexibility in the future. Keep in mind, your taxes, monthly maintenance, mortgage and insurance need to be factored into the rental break-even equation. Finally, make certain to check interest rates frequently, as that will impact your basis.
- Research the Building: On the surface, the lobby looks great, Doormen seem nice and the amenities are beautiful. But what is the financial condition of the property? How often do common charges increase? Is the building being well-run? Are the walls too thin? Bugs in the building? The more research conducted in advance, the happier and more secure you will be in the future.
- Who is on the Board? If possible, it’s always important to find out the sponsor of the building, President of the Board and other potential members. This building will become your new family. Furthermore, knowing the building dynamics will be helpful, as you will see these people on a frequent basis. Again, they will become part of your life!
- Choose the Property that fits your lifestyle. A Townhome, Condo or Co-Op: Every buyer must decide the type of home that best suits them. Some prefer a townhome with more privacy. Others want a new Condominium with the latest amenities and features. Yet some like the old world charm of a prestigious Co-Op building. There is no right or wrong. It’s a matter of your personal taste.
In conclusion, make certain to conduct your due diligence! Just because you have the cash doesn’t mean you shouldn’t make a wise decision. Throughout the years, I have helped many buyers build wealth through savvy real estate decisions. Again, think long-term and not based on an impulsive decision!
To setup a call and discuss the latest new Condominium buildings, luxury Townhomes and Co-Ops, please contact us below. Finally, I would be delighted to dedicate the time needed to hep you buy the best investment possible!