If your ready to buy a home in NYC, there are many things to consider. It could be one of the biggest financial transactions of your life. Taking the proper steps of precaution can save you time, money, and energy down the road. I've put together a list of 5 important things you need to know before buying in NYC.
Location: Location is the most important thing to consider when buying real estate. The location you choose will effect your lifestyle and commute among other things. How long will the commute to work be? Does the neighborhood have good shopping and restaurants? If you have a car, how is the parking in the area? If you ride the subway, what train lines serve the area? If you have children or are planning to, how are the schools? What about the crime rate? Does the neighborhood have access to parks and recreation? These are all important things to consider when buying a home.
Property type: It's important to consider the type of property you plan to purchase. The options can be limited in particular areas. Some suburban areas only have single family homes. Others have multi-family properties and condos. Urban areas typically have a mix of single-family, multi-family, mixed-use, condos, and co-ops. You should research each option to see what property type fits your goals.
Financing plan: How do you plan to pay your home? Are you planning to pay all-cash or take out a mortgage? It's important to determine how you will pay for your home before you start the search. If you plan on obtaining a mortgage, its best to speak with a lender to find out the different financing options. Conventional loans used to purchase property typically require 20-25% down-payment. If you are a first time buyer, a government backed FHA loan may be a good option for you. The down-payment is low for FHA loans, around 3.5%, and can be used to purchase multi-family property. If you are a Veteran, the VA Loan requires no down-payment. Figuring out your financing is an important first-step in the process of buying real estate.
Price range: Determining your price range before you starting looking at potential properties can save you wasted time in the future. After you determine your financing plan, you will have a good idea on what your actual price range is. Maybe you will be surprised on how much you can afford, or surprised that you don't qualify for as much as you expected. Once you determine your price range you will be able to narrow down the options which will also bring more clarity to your search.
Assemble your team: Buying real estate is a complex task. There are a lot of people involved who are working in different capacities. The listing agent is working for the seller, against your best interests. Like sellers, buyers can hire an agent to represent their best interests throughout the buying process. It's smart to hire an agent who knows the local market and how to negotiate with listing agents. This can save you time and money when going through the buying process. A good buyers agent will also be able to provide you with a list of vendors you will need to successfully buy real estate such as attorneys, lenders, home inspectors, appraisers, architects, and contractors. Buying real estate is a complex task, and its important you build a team of competent professionals to help you successfully navigate through the buying process.
Quick look at 821 First Avenue, a new high rise under construction across the street from the United Nation. It will be home to the Turkish Consulate. Checkout the video below.
This color film shows how life was in New York City back in 1939 just before World War 2.
Happy seller! Just sold in Brooklyn! 535 Bainbridge Street in Bedford-Stuyvesant. Thanks for the great opportunity! #brooklyn
View the listing here
By Colin R. O'Leary
When selling a property in New York City it's important to consider the closing costs. Here's what to expect when selling a property in New York City.
Real Estate Commissions: This makes up the lion’s share of the closing costs when selling a home. Typical commissions range from 5-6% of the apartment/building price in NYC. These commissions are usually split evenly between a buyer’s agent and a seller’s agent.
Real Estate Attorney Fees: Most real estate attorney fees will generally range anywhere from $2,000-$5,000 for the transaction. Real estate attorneys in NYC typically charge you a flat fee upon the closing of the real estate transaction.
NYC & New York State Transfer Taxes for condos, co-ops, 1-3 family: The New York State transfer tax is 0.4% for homes sold under $3,000,000. and 0.65% for homes sold above $3,000,000. The NYC Transfer tax is 1% for home sold under $500,000, and 1.425% for home sold above $500,000. For example, if a home sells for $1,000,000 the total NYC & NYS Transfer tax would add up to 1.825%. For homes sold above $3,000,000 the total would be 2.075%. Investment properties (commercial, mixed use, 4 + unit) have a different scale regarding transfer taxes. See chart below for full details.
Captial gains tax: This applies to investment properties only. While this isn’t technically an itemized closing cost, it is certainly something you should consider. If you are selling your primary residence, you have lived there for 2 years or more, and are married, you can typically exclude the first $500,000 in capital gains and take them tax free. If you are single, it would be approximately half of that or $250,000.
When calculating your gain, it's best to speak to your accountant or financial advisor so the cost basis can be determined. There are options to help you avoid paying a hefty tax bill that comes from capital gains taxes, such as a 1031 exchange. A 1031 exchange allows a seller to reinvest the proceeds into a new property or into an approved fund that will help defer capital gain taxes.
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Skyscraper construction is one of the most visual ways of displaying a city's current economic growth. Skyscraper construction is often tied to a city's economic cycle. Skyscraper construction is no simple task. It requires massive cooperation and involvement from both private capital and local government. The B1M, the world's most subscribed-to video channel for real estate construction, created a video that shows the top 10 cities in the world that are leading the way in skyscraper construction. Check out the video below and let me know which cities that are building skyscrapers that you are most impressed with.
I’m excited to share the announcement of Berkshire Hathaway HomeServices Gulf Properties, the first Berkshire Hathaway HomeServices in Asia. This announcement not only marks our continued global expansion, but highlights the growth of a world-class brand representing the integrity and unparalleled excellence of Berkshire Hathaway.
Read more about it here
NYC MARKET UPDATE
The real estate market is up in 4 of the 5 boroughs in New York City. Median home values are down in Manhattan, where its become a buyers market. Median prices have dropped -6.1% in Manhattan year-over-year, according to Zillow. The median home value in Manhattan is now $1,228,200.
Brooklyn home values are holding steady, up a modest 1.5% year-over-year. The median price of homes currently listed in Brooklyn is $749,000. In Queens, median home values have gone up 5.1% over the past year. The median home value in Queens is $649,700 right now.
The hottest real estate market in the city right now is the Bronx, where the median home value is $437,900. Bronx home values have risen 9.8% over the past year. Staten Island home values have gone up 5.8% over the past year. The median home value in Staten Island is now $532,800.
NATIONAL MARKET UPDATE
The median home value in the United States is $226,700, an increase of 6.6% over the past year. Zillow predicts median home values will rise 4.1% over the next year. In February, existing home sales experienced their largest monthly gain in four years, according to a recent report by the National Association of Realtors.
Over the last two years, the average homeowner has accrued about $21,300 in home equity, according to the National Association of Realtors (NAR). NAR Chief Economist Lawrence Yun said that a combination of lower mortgage rates, more inventory, rising income and higher consumer confidence are driving sales.
Rising home prices aren’t discouraging homebuyers. According to a recent quarterly NAR survey, more Americans believe that now is a good time to purchase a home, citing the improved economy as an incentive. NAR Chief Economist Lawrence Yun said other factors are spurring buyer optimism, including more available homes for sale and stabilizing home price trends.
Yun also notes that mortgage affordability in 2019's first quarter was favorable to homebuyers, because the Federal Reserve isn’t going to raise overnight borrowing rates to banks, which contributed to mortgage rate declines and making homeownership slightly more affordable for homebuyers. Mortgage rates remain near historically low levels.
Colin R. O'Leary
Licensed Real Estate Salesperson
Berkshire Hathaway HomeServices New York Properties
590 Madison Avenue, New York, New York 10022
Direct: 646.677.9346| Mobile: 516.330.2756
Bio & Listings: bhhsnyproperties.com/colin
Real Estate Board of New York Member
U.S. Air Force Veteran
"The highest compliment we can receive is a referral. Thanks for your trust!"
The new triangular observation deck at the #HudsonYards will be the highest in the city at 1,100 feet when it opens in 2020.