Advantages of Condo Ownership in Manhattan
As a real estate professional dealing with all the sales and rental housing stock in Manhattan, here are a series of reasons why a condo can be an advantageous investment for the buyer and seller.
You own your apartment free and clear, along with a percent of the common areas, and receive a deed.
Condos are generally newer because they didn’t become common in NYC until the 1970s. Due to lack of land, they are often found in the fringe-neighborhoods i.e. the far east and far west sides.
Condos allow buyers more financial flexibility and sellers more liquidity. Condos don’t have the restrictive debt-to-income ratio and post-closing & down payment requirements typically seen in co-ops. Also, the condo demand extends beyond the local market and can be used as an investment vehicle. As a result, condos are easier to buy and to sell, and rent.
Condos are more private and inclusive. Instead of a board interview, the condo has the” right of first refusal”, which is generally never exercised. This is also why it is attractive to many celebrities.
Condos frown upon short-term rentals and most disallow 30 days, or less than one year, which provides owners with a less transient living experience.
Condos have fewer rules and are generally more flexible when it comes to pets, pied a terres, parents buying for children, and foreign buyers.
The average condo is roughly 300 square feet larger than the average co-op (according to Jonathan Miller of Miller Samuel Real Estate Appraisers).
*Average Condo prices are more expensive (than co-ops) however, not as much as you might think due to the numbers being skewed by the high-end new development condos.
If you, or someone you know, would like to consult with me more about this, please let me know when to contact you.
In the meantime click here for a great article from Brick Underground on strategies for buying a condo.