Standard Fund Requirements
Location, size, amenities, building type, school locations and nearness to public transportation are crucial to determining what a property will cost. We suggest that buyers review financing options to determine what amount of money they can put toward a deposit and then determine what they can afford for a monthly mortgage payment. Some people may want to see if they pre-qualify for mortgage status in order to know what budget they will be working within.
Type of Property
The next thing to determine would be the type of property you'd like to buy. Would you like an apartment, condominium, coop or commercial property?
For apartment purchases there is no approval process, besides normal financial inquiries. Buyers are entitled to have complete control over any renovations they wish to make. Maintenance costs are the sole responsibility an owner and with this the owner gets total control over maintenance and repairs. Transferring deeds or reselling an apartment do not require approval. The size of a property can vary according to a budget and location of the property.
Condo owners buy the apartment and also own a percentage of the common building areas, i.e. entrance areas, hallways and recreational areas etc. The condominium is considered real property; because of this fact, owner's have the right to do use the property any way he/she sees fit. Owners are subject to pay property taxes which can either be escrowed into a part of a monthly mortgage payment or which are paid annually as an expense. Monthly maintenance fees are generally paid to the building's condominium association.
Buying a coop is tricky, but KSI Realty New York Inc.'s team of qualified agents can help. When purchasing a cooperative apartment the purchaser is really purchasing shares in a cooperation. The shares correspond to the units in which you live. coop fees include a monthly mortgage payment and maintenance fees for the building. Maintenance fees are sometimes high but both mortgage payments and maintenance fees generally result in higher tax deductibles.
1) Cooperative Apartment
*Prorated for month of closing *Expect to pay eight months Real Estate Taxes. These taxes are combined between seller as an adjustment and escrow established by lender. *Note: When purchasing condos from a sponsor, the purchaser will be required to pay New York City and New York State Transfer Taxes; see above for amounts. *Also, buyers are required to pay sponsor's attorney's fee; this fee is approximately $1,000.
3) Multi-Family Residential/Commercial Property
For the most up to date information on New York City Property tax, please visit: http://www1.nyc.gov/site/finance/taxes/property-tax- rates.page
You can also learn about the IRS latest Publication on deduction's here: https://www.irs.gov/publications/p530/ar02.html