Dies ist Teil unseres größeren Leitfadens zum Wohnungskauf in den USA. Zurück zu Wohnungskauf USA. Wer L.A. als reines Investment sieht, sollte vorab unsere Grundlagen zur Immobilie als Kapitalanlage und zum Thema Eigennutzung vs Kapitalanlage lesen.

Die Stadt der Engel – Eine Wohnung kaufen in L.A.

Los Angeles, where dreams come true — and where real estate prices belong to the highest in the USA. Home to celebrities, Hollywood studios, beaches and surfing. From Malibu over Bel Air to Silver Lake and Venice Beach. It’s worth it to tolerate the traffic and chaos of the metropolis for the unique atmosphere of this city.

Would you like to live or invest in Los Angeles, but don’t know where to start? Mid-City, Silver Lake with the young students, or perhaps rather Beverly Hills? We give you a complete overview — including price ranges, return examples and tax peculiarities of California.

Los Angeles Economy – Overview

Los Angeles has a massive economy that ranks among the world’s largest metropolitan regions — alongside Tokyo and New York. Strength lies in the creative sector: Hollywood is the world’s largest film production area. But that’s only part of the picture. Add to that:

• Entertainment & Media: Hollywood, streaming studios, music industry
• Tech: “Silicon Beach” (Santa Monica, Venice, Playa Vista) — Snap, Google, Hulu
• Aerospace: SpaceX, Boeing, Northrop Grumman in the greater L.A. area
• Port & Logistics: Port of L.A. — the largest container port in North America
• Fashion & Design: L.A. Fashion District, the largest textile location in the USA

This diverse range of industries makes the market resilient against sector-specific crises — a key advantage over single-structured locations.

Los Angeles Drone – How beautiful it can be

Los Angeles has enormous visual fun to offer. Sunset at the sea, beaches, and skyscrapers:

Full L.A. Guide – Hot Neighbourhoods + More

Buy or rent? Break-Even calculation

Whether you buy or rent — in L.A. you pay a high price. The decision depends on the classic break-even point: How many years would you have to pay rent until you reach the same amount as a down payment plus mortgage repayment?

Break-Even Example L.A. (Condo, middle location)

Rule of thumb: When holding period is more than 5–7 years, buying instead of renting pays off. Under 5 years, closing costs, capital gains tax and real estate agent fees when reselling outweigh the appreciation. Those who want to calculate the exact Break-Even can use our Cashflow Calculator and the Purchase price factor.

• Buy when holding period > 5 years and rent comparison > $3,500
• Rent, if professionally mobile or market entry uncertain

Is it a good time to buy an apartment in Los Angeles?

The L.A. market shows cyclical phases. In high-interest phases, demand decreases, sellers become more negotiable — classic buyer window. In low-interest phases, prices rise sharply, bidding wars become standard. Those with sufficient equity benefit counter-cyclically: Calculate equity requirements.

Indicators for a good entry time:

• Days on Market (DOM) > 45 days = buyer’s market
• Price-to-Rent-Ratio > 20 = rather rent, < 18 = rather buy
• Inventory > 4 months = negotiation room
• Mortgage interest rates in 5-year comparison

Which state has the highest property taxes? The full list:

• Property Taxes by State – List

Los Angeles Real Estate Market – Explanation

The Los Angeles real estate market is doing well, like many US super cities. The market is neither clearly a seller’s nor a buyer’s market, but strongly micro-location dependent: Beverly Hills follows different cycles than East Hollywood.

Median Price Ranges by Property Type (Greater L.A. Area)

Mietrendite & Cap Rate L.A.

Die Bruttorendite berechnen ist in L.A. ernüchternd niedrig — der Markt lebt von Wertsteigerung, nicht von Cashflow:

• Brutto-Mietrendite: 3,5 – 5 % (Premium-Lagen oft < 3 %)
• Cap Rate (net): 2.5 – 4 % after HOA, Tax, Insurance
• Historical appreciation (10-year average): 5–8 % p.a.
• Purchase price factor: typically 22 – 32 (see Rental yield purchase price factor)

Those who want to compare the real performance can use our return comparison. For the German tax side of the investment, it’s worth looking at Real Estate return and calculate net return.

What you need to know about areas in L.A.

Los Angeles is a huge city spanning several counties. It is almost impossible to make a general decision. In general, there are three buyer profiles:

• Prestige buyers: Bel-Air, Beverly Hills, Holmby Hills, Pacific Palisades
• Urban lifestyle buyers: DTLA, West Hollywood, Hollywood Hills
• Hipster / Young Professionals: Silver Lake, Echo Park, Mid-City, Highland Park
• Beach Lifestyle: Venice, Santa Monica, Manhattan Beach, Malibu
• Families & Schools: Pasadena, San Marino, La Cañada

Rent Range by Neighborhood

• Lowest Rent: Jefferson Park starting at around $1,400
• Mid-range: Silver Lake, Echo Park around $2,500 – $3,500
• Premium: Santa Monica, West Hollywood around $4,000 – $7,000
• Highest Rent: North of Montana / Bel-Air starting at $8,000+

How to Buy an Apartment in L.A.

The apartment purchase is a long and tedious process with many stages. Whoever skips steps ends up paying for it in the end. If you’re generally unsure which type of property you should invest in, the comparison on our Buy an apartment main page and for first-time buyers the guide buy your first property can help.

Checklist – To complete before the purchase

How to specifically prepare for buying an apartment in L.A.:

• Check credit score: FICO > 720 for best conditions, > 760 for Jumbo Loans
• Debt-to-Income (DTI): max. 43 %, ideal < 36 %
• Demonstrate reserves: 6–12 months of payments as liquidity reserve
• Secure down payment: in L.A. at least 20 %, for Jumbo Loans 25–30 %
• Get pre-approved for a mortgage: contact a mortgage broker
• Build a team: Real Estate Agent, Real Estate Attorney, Home Inspector, possibly a Tax Advisor (CPA)
• For German buyers: apply for an ITIN, check if an LLC for asset protection is necessary

In L.A. with comparatively high prices, your down payment should be at least 20% — otherwise PMI (Private Mortgage Insurance) and a higher mortgage rate may apply. Those who want to understand the mechanics of repayment should look at amortizing loans and repayment mortgage.

Purchase of a property — process from negotiation to closing

Step 1: Make an Offer — Negotiate the Selling Price

You have found your dream apartment. Now it’s time to make an offer. There are two negotiation levers:

]]> https://lukinski.com/apartment-buy-usa-explanation-how-to-prices/ Tue, 01 Dec 2020 15:43:06 +0000 https://lukinski.de/?p=31901 USA – How do you buy an apartment in the USA? We explain and translate everything you need to know for the American real estate market. The complete guide to buying an apartment. We explain everything you need to know about buying an apartment in the USA, walk you through the entire process, and explain all the details simply and do not forget the steps. This should give you everything you need to know before starting your apartment search.

Step 1 to financial freedom – buying real estate

Real estate ownership. This is the path we must take. But it may be that you don’t have $100,000 in your bank account to make such a high down payment for your mortgage. The better choice here is to invest in an apartment. Below, we will guide you through the entire process, from where you start, where it ends, and how you move into your brand new apartment. These apartments can be lofts, penthouses, single rooms, or shared apartments. The same process applies to all these types of apartments in the USA.

Advantages of buying versus renting

You may not be sure whether you want to buy or rent an apartment. Real Estate experts will swear everywhere that you must either rent or buy. Ultimately, it’s not such a simple decision, and what is the best choice in your case depends on many factors, such as your income, your financial reserves, the location of the property, etc. Factor number one is probably how long you intend to live in the property.

Calculate Your Finance

When making this decision, the most important calculation is comparing the rent with mortgage payments. Let’s say you find your dream property and you want to live there for the next 10 years. If you can rent this property for, say, $1,000 per month, or you can buy it and pay $1,000 per month as a mortgage for 10 years, you can do the math yourself. Either way, you will be living there, but if you buy it and pay the mortgage, you will build equity, and as soon as you move out, you can sell it for a profit. Unlike renting, owning property also comes with a series of tax deductions that reduce the amount you actually invest.

When You Should Rent

Of course, you should not forget that a purchase always includes a down payment. If you are short on cash and cannot afford this down payment or it would force you to take out another loan, you are better off renting and avoiding high interest rates. This page also offers tax benefits, such as not having to pay wealth taxes.

US-Firmengründung speziell für Tax-Lien-Investoren

US-Firmengründung speziell für Tax-Lien-Investoren. Dieses exklusive Paket wurde speziell für deutschsprachige Tax-Lien-Investoren entwickelt und enthält alles Wichtige, was ein Investor benötigt, um seine Tax-Lien-Investments erfolgreich umzusetzen:
• Gründung einer LLC oder Corporation
• Registered Agent Service (gesetzlich vorgeschrieben)
• Geschäftsadresse
• Postservice
Mehr erfahren:
• US-Firmengründung


Top Reasons to Buy an Apartment

There are many reasons to buy an apartment. These are the most important reasons that should motivate you.

• Attractive investment returns
• Risk of depreciation
• Perfect preparation for retirement
• Flexibility
• Secure investments
• Protection against inflation
• Tax deductions

Preparing for the Real Estate Purchase – Before the Purchase

There are a few things to consider before you even start looking for real estate. Of course, you can scout the market before doing these things, but keep in mind that without the following, it will be quite difficult to make a serious offer on an apartment.

Of course, you need to decide what you actually want to invest in, let us help you with that:

• Which real estate should I invest in?

Check Your Creditworthiness – Financing an Apartment

This is number one. Before you set out on the hunt for a property, you should know whether you are financially able to buy it. Credit reports are created by three so-called credit bureaus: Transunion, Equifax, and Experian. They provide you with a report that can be converted into a score. This score also plays a role in the decision about what type of mortgage you can get.



Contacts – Lawyers, Mortgage Brokers, etc.

Before purchasing, you should have a few professionals on your side. It is probably a good idea to have a lawyer beforehand, and in many places, such as when you buy an apartment in New York, it is even mandatory. Additionally, you can choose to hire a mortgage broker (especially when buying in a co-op, see below) and a real estate agent.

Mortgage pre-approval – Insurance for loans

Before you start looking for an apartment, you can (and should) get a pre-approval for a mortgage. This consists of a letter that confirms you are actually able to obtain the mortgage. In a way, it is the bank that informs the real estate agent and the seller that they will lend you the necessary funds to buy a real estate property worth x dollars. This is an essential part of the process, as most real estate agents and brokers refuse to show properties or make contact without such a pre-approval.

Let us guide you through the confusing world of mortgages:

• Mortgage – Meaning, Explanation, US Real Estate
• Mortgage Interest

Buy without mortgage pre-approval – Paying for an apartment in cash

It is possible to buy without prior mortgage approval, provided that you pay everything in advance. This is certainly not a common scenario, but since you will not be obtaining a mortgage for the property you want to buy, you can contact real estate agents and sellers without needing to secure pre-approval for a mortgage. In this case, however, you will need to provide proof of financing in order to view the properties.

What now? More tips for your apartment search

Now that you’ve taken care of these things, you can start looking around. It’s best to first get an overview of the market and how you want to buy. This is best done through frequent viewings of property listings and by attending house viewings. Even though the internet is now available almost everywhere, it’s never a bad idea to personally visit smaller real estate agencies in the neighborhoods you’re interested in. Some more traditional businesses may not list their offers online.



Preparing for the purchase – Preparation costs

If you are preparing to buy your apartment, there are some things you need to clarify beforehand. Planning is always of central importance and should include all additional costs. Keep in mind that these things naturally vary in different areas. Buying an apartment in Chicago is entirely different from buying an apartment in L.A..

Taxes & Capital Gains Tax Rates

When you think about Finance, you naturally also have to consider taxes. There are three different types of taxes. Three taxes you pay when buying a property, including the wealth tax. You also have to pay this wealth tax repeatedly whenever you own this property.

Would you like to learn more about the wealth tax? We keep you informed

• U.S. Property Taxes – Explained

Important additional details

Es gibt eine Menge Details, die Sie beim Kauf einer Immobilie vergessen können und die Sie später sehr belasten. Denken Sie an die Nebenkosten, die Sie an die Eigentümer des Gebäudes zahlen müssen. Auch hier ist es wichtig, wer sich um diese Dienstleistungen kümmert, und ist diese Firma, die die Dienstleistungen erbringt, gut? Achten Sie auch auf eventuelle Einschränkungen, wie z.B. ob Haustiere erlaubt sind, und auf Lärmbeschränkungen. Es kann in der Nachbarschaft auch schwer zu erkennende Probleme geben, wie z.B. ein großes Einkaufszentrum, das ganz in der Nähe eröffnet, was den Verkehr erhöht, oder ein Nachtclub in der Nähe, was nächtlichen Lärm bedeutet. Oder vielleicht gibt es in der Gegend bauliche Probleme, weil der Boden instabil ist. Viele dieser Dinge werden von Ihrem Anwalt angesprochen, also hören Sie gut zu. Der Standort ist entscheidend, d.h. New York wird andere Details zu beachten haben als L.A. oder Miami.



Wohnungskauf – Prozess von der Verhandlung bis zum Abschluss

To finally buy the apartment, you will want to start the negotiations.

Make an Offer – How to Negotiate the Selling Price

Sie entscheiden also, dass dies Ihre Traumwohnung ist. Was nun? Nun, jetzt ist es Zeit, ein Angebot zu machen. Das bedeutet, mit einem Angebot an den Verkäufer heranzutreten. Es gibt zwei Seiten, auf denen verhandelt werden kann, und Sie müssen sich für die eine oder die andere entscheiden. Entweder Sie versuchen, den Verkaufspreis zu reduzieren. D.h. eine Immobilie für $800.000 im Gegensatz zu $850.000 zu kaufen. Die andere Möglichkeit ist, über die Schließungskosten zu verhandeln, z.B. sich auf den Verkaufspreis zu einigen, aber den Verkäufer zu bitten, einige der zusätzlichen Kosten zu zahlen, einschließlich Real Estate Transfer Taxes. Diese Taktiken bedeuten natürlich, entweder in diesem Moment mehr Geld auf dem Bankkonto zu haben oder die Höhe der monatlichen Kosten in der Zukunft zu reduzieren. In der Regel können Sie davon ausgehen, dass Sie 5%-10% des Verkaufspreises aushandeln werden.

Nächste Schritte – Gebäudeinspektionen

Your lender will certainly ask you for an inspection of the house and the apartment itself. This usually shows minor defects, such as future maintenance work or, for example, structural defects.

Reduction of the selling price of real estate

Now you can renegotiate. You have identified defects in the building and now have a strong negotiating position. Share your concerns with the seller, and he will probably be more lenient in the negotiations.

There is also a lot you can save on the many minor additional costs that arise when buying real estate, we give you the complete guide

• All additional costs when buying a house

Finally important step! Walkthrough

Don’t forget the walk-through! This is one of the most common beginner mistakes. After the move-out, things can change — the previous tenant may have caused some damage, or a cabinet may have hidden a flaw. If you don’t do the final walk-through, it can later become your biggest regret. It doesn’t take that long and will definitely be worth it, at least for your peace of mind.



Cooperative apartment – Buying shares, not ownership

Cooperatives are a bit harder to get, with a complicated and time-consuming process, but the time investment is worth the reward, typically with lower property taxes, the opportunity to build equity, and more.

What is a co-op apartment? Meaning, definition, explanation

A cooperative apartment is an apartment managed by a housing cooperative. When you buy a cooperative apartment, you are not actually buying the property, i.e., the four walls in which you want to live. Rather, you are buying a share in a legal entity. The shares you purchase entitle you to the use of a specific part of the building. You are therefore not the owner of a property, but a membership that allows you to use the apartment in which you live. This also means, of course, that you do not take out a mortgage, but a joint loan, i.e., a loan to pay for the shares.

Why you should choose a cooperative – Advantages

Since you are not the owner of the property yourself, you do not have to pay capital gains taxes. Instead, the cooperative pays the property taxes for the entire building, and these are split among the members, i.e., the residents. The main advantage of a cooperative is that it is cheaper. The property taxes paid by each resident are lower, and the additional fees are also lower, as the cooperative is not profit-oriented. Finally, residents of cooperatives, even though they are not owners of the property, are entitled to numerous tax deductions that property owners can also claim.

How to buy a cooperative apartment – Step-by-step explanation

Before you can buy into the cooperative, you have to go through several steps. Before you contact a cooperative or identify an apartment you are interested in, you must bring in a lawyer, a mortgage broker, and an engineer. This is not necessarily required, but it significantly increases your chances of getting the desired apartment. Because once you have identified the desired apartment, you apply. The board of directors decides on your application. This body naturally wants the best possible residents, so it is important that you present yourself as a serious buyer. All cooperatives have a specific list of requirements, which includes, among other things, the amount of the down payment you must make, and the amount of your financial reserves. After that, you get in contact with the seller, start with the title search and the mortgage application, and finalize the purchase.



Special – Buy Apartment New York

New York, the city of dreams. You can also live your dream of owning real estate, and that in one of the world’s top cities, from fashion through finance to art and food. Buying an apartment in New York is certainly not the easiest task, but one for which you will probably be glad you took the risk. But New York, as everyone knows, has a complicated real estate system. Buying an apartment here means many other things than in other parts of the USA.

We take care of all the questions you might have in our complete guide to buying an apartment in New York

Buy Apartment New York – Simply Explained



Special – Buy Apartment Los Angeles

Los Angeles, where dreams come true. The home of celebrities, Hollywood, a sprawling cityscape, beaches and surfing, and everything else you can imagine. From Malibu to Bel Air, Silver Lake and Venice Beach. It’s worth the traffic and chaos of the metropolis to experience the unique atmosphere of this city. So you want to live in Los Angeles, but don’t know where to start? It’s certainly not easy to figure out where and how you should live. Decide on Mid City or a shopping paradise or Silver Lake and hang out with the young students? We give you the full description below.The real estate market in Los Angeles is developing well, like so many of the US super cities. Los Angeles is neither a buyer’s nor a seller’s market. Prices are also rising, even when it comes to single-family homes, by over 16%.

We take care of all the questions you might have in our complete guide to buying an apartment in Los Angeles

Buy an Apartment in Los Angeles – Simply Explained



Checklist – Overview of the Process: Buy Apartment

These are the most important things you must do before and when buying your apartment. Do not neglect these steps, because each one is important on its own.

Preliminary Steps for Buying an Apartment

The most important things you need to know before buying an apartment are

1. Check credit score
2. Gather experts
3. Mortgage pre-approval
4. Remember the details!

Remember when buying the apartment! Important final steps

During the purchase, or shortly before or after, there are important things to do. These include:

1. Make an offer
2. Smart negotiation!
3. Inspect
4. Renegotiate
5. Review (Important!)
]]> https://lukinski.com/buy-apartment-new-york-everything-to-know-explained-easy-guide/ Tue, 01 Dec 2020 15:42:31 +0000 https://lukinski.de/?p=31909 New York USA – Buying an apartment in New York City is different than anywhere. We give you a full, easy to understand step-by-step guide to buying an apartment, penthouse or loft in New York, whether Brooklyn, the Bronx, Queens, or Manhattan. We cover everything from the New York City real estate market overviews to answering questions like buy or rent an apartment in New York? What are the tax rates for real estate in New York? What’s different about buying an apartment in New York? All this and more in our New York Apartment Guide.

This is part of our larger guide on buying apartments. Back to Buying an Apartment USA.

Living the Dream in NY – Buying an Apartment

New York, the city of dreams. You too can live your dream of owning real estate, many people dream of buying an apartment or buying a house in New York, one of the top cities worldwide in everything from fashion to finance to art and food. Buying an apartment in New York certainly isn’t the easiest of tasks, but one that is likely to leave you happy you took the risk.



The Money’s Flowing? New York Economy Overview

In regards to economic developments, New York is seeing a surge. So in a city where money is everyhwere anyways, it’s flowing even more now. Currently it is the city with the second highest economy in the world, ahead of Los Angeles. In recent years, multiple top companies from digital sectors have moved headquarters or opened offices in the city. This means increased investments in multiple sectors, along with higher demand for rentals in the inner city, housing workers. The general real estate market has weakened over recent times, meaning the classic investments of earlier years like TriBeCa or Soho where high square meter prices dominate, are currently clever investments for buying as the market is likely to recover, and these parts are likely to gain back value.

• Economy likely to grow

The Beauty of the City – New York Drone

New York City is known worldwide for its massive skyscrapers and epitome of big-city atmosphere. Take a view at the Metropolis from above:

Buy or Rent? Calculation Explained

When deciding whether to buy or rent, of course the low property taxes suggest you should buy. But as always, it depends where you want to live, and how long. If you’re looking at the downtown core, like Manhattan, it’s near-impossible to buy, and rent is comparatively cheap. So here, you would be good to rent, and invest your money elsewhere.

Neighborhoods like Bushwick, or even Chelsea, give you better buying options. Buying in Bushwick carries the same financial load as renting for three and a half years. That means buying here is much better than renting. You’re likely to leave a few years later with a strong return on your investment, along with financial equity.

• Depends on which neighborhood

Why it’s Good to Buy in New York City

In New York, it’s especially advantageous to buy, because New York property taxes are quite low. Thanks to fairly high income taxes, the state does not require to set high property taxes, which allow homeowners to save money. These taxes are at 0.86% in New York City, much lower than in the vast majority of U.S. States.

Low property tax rate in New York City means owning is worth it!



What state has the highest property tax rate? Ranking

• Property Tax Rates by State – List

New York’s Real Estate Market – Explanation

So what do you have to know about buying real estate in New York?

Properties are becoming increasingly large. Accordingly, there is an increase in purchases of properties valued at more than $1 mil. In New York, real estate is all about location though. On average throughout all of New York City, one-bedroom apartments can be had for $2.810/month, or two-bedroom apartments at $3.576/month. In e.g. East Brooklyn, the average rent is at $1.250/month, demonstrating the large chasm in where you pay and how much you pay. This is quite different from when you buy an apartment in Los Angeles, where no matter what part of the city you go to, you’re going to be paying hefty sums.

• Apartment Median price: $916.000
• Price per square meter: $7.244/m²

Important Facts – Property Investment in New York

There are a few things the experts swear by. If you want to invest in rental properties or generally non-owner-occupied real estate, these are the things you should keep in mind when thinking about investing in New York real estate:

• How long do you want to own the property?
• How do sales compare with the rent you will likely take in
• Find the right neighborhood
• Should you buy a Multi-Family or a single unit?
• Get your attorney to look over the building
• Buy the most bedrooms per most square footage
• Keep an eye out for tax abatements

How to Buy an Apartment

It’s of course a long and arduous process to buy an apartment, and takes a lot of time as well as financial investment. From beginning to end, there are irreplacable steps which, if you miss them, could be costly. If you’re not sure what real estate you should invest in, start here:

• Type of Real Estate – Which to Buy

Checklist – Things to do Before Buying

How to prepare for buying an apartment. Before buying real estate, you need to do these 5 things:

• Get knowledgeable about your finances
• Get together documents about your finances
• Speak to your possible mortgage broker
• Decide on the type of financing
• Find an attorney, real estate agent, and home inspector

Buying Apartment – Process from Negotiation to Close

To buy the apartment finally, you will want to start negotiating.

Make an Offer – How to Negotiate Sales Price

So you decide that this is your dream apartment. What now? Well now it’s time to make an offer. That means approaching the seller with an offer. There are two sides on which to negotiate, and you must pick one or the other. Either you try to reduce the size of the sale price. I.e. buying a property for $800.000 as opposed to $850.000. The other option is to negotiate the closing costs, e.g. agreeing on the sales price, but asking the seller to pay some of the additional costs, including real estate purchase taxes. These tactics of course mean either having more money in your bank account at that moment, or reducing the amount of montly costs in the future. You can typically expect to negotiate 5%-10% of the sale asking price.

Next Steps – Building Inspections

Your lender will most certainly require you to have an inspection of the apartment building, as well as the unit itself. This usually shows slight flaws, such as necessary maintenance in the future, or e.g. structural flaws.



Reducing Sales Price on Real Estate

Now you can renegotiate. You have found flaws in the building, and now have a strong negotiation stance. Let the seller know your concerns, and they will likely be more lenient in their negotiation.

There’s also a ton you can save on the many slight additional costs which come up when buying real estate, we give you the full guide

• All Additional Costs when Buying a Home

Final Important Step! Walk-through

Don’t forget the walk-through! This is one of the most frequent beginner mistakes. After moving out, things may change, the previous owner may have broken something, or a cabinet may have been covering up a flaw. Not doing a final walk-through can be your number one regret later on. It doesn’t take that long, and will most certainly be worth it, at least for the peace of mind.

What’s Different in New York?

There’s of course some caveats to buying an apartment in New York as opposed to elsewhere in the U.S. That means a few things to keep in the back of your mind when considering your purchase of an apartment. Of course, the normal process takes place, you buy a unit using a downpayment as part of your mortgage, pay closing costs, and then taxes, and then move in.

Property taxes vary from county to county, if you’re investing in New York,

• Property Taxes NY Explained

Before – Buying Apartment Preparation & Planning

The people which are required to be at your side are of course the same all over the U.S., but in New York there is one specific requirement. When buying an apartment in New York you are required to have an attorney on hand. That means you need to get one sorted (preferably with real estate specialization) before even starting your search.

• Mandatory to have an attorney



Taxes – Extra Real Estate Costs

Of course there’s different taxes in New York than elsewhere in the country. New York is one of the states which, along with the real estate transfer tax, requires a mortgage tax. Like for example the mansion tax, which kicks in when buying a property worth more than $1.000.000, or the flip tax, which is actually not much of a tax because it is private. The property taxes, how much they are and how they’re calculated is of course also unique in the Big Apple.

Pretty much everyone pays too much in taxes. It’s especially easy to save on real estate taxes. Learn how:

• Saving on Real Estate Taxes – Easy How-to

Insurance – Expensive Additional Cost

Not to forget is that you will have to pay homeowners insurance. In New york this can run around $2.000 a year.

• $2.000/year homeowner’s insurance

Sponsor Units – Affordable Apartments Trick

Sponsor units are only available in New York. They are a special types of apartments. These typically exist in multi-residential buildings which the developer or co-op have mostly rented out or sold. Yet, often these developers or cooperatives keep a few units to themselves for private use. These are often later turned into rentals or sold on. The advantage, in co-ops, the new resident will not be required to have to submit a financial package. Sponsor units are also usually cheaper to buy than other type of units.

• Cheaper
• Easier to get
• Rare



Rent Control? Stabilization? NYC Real Estate Law

Is it even worth it to buy an apartment? New York has rent-controlled and rent-stabilized apartments. These differ from the typical apartments in that they have much lower rent. But, because they are extremely rare and nearly impossible to find, it’s better to focus on rent stabilized apartments.

Rent Stabilizing – Meaning & Definition

Rent-stabilized apartments are apartments who’s rent cannot increase heavily. The yearly increase is regulated by the government. This protects you as a tenant. It also makes you lucky to live in such an apartment. Meaning that if you are at the moment living in a rent-stabilized apartment, you are likely to be paying less than many others. Therefore, buying an apartment is perhaps at the moment not the best idea.

• Rent stabilized = government-controlled rent increase

Where to Live in NYC – Best Neighborhoods

There’s the five boroughs, Bronx, Queens, Manhattan, Brooklyn and Staten Island. But within these, countless neighbourhoods, some world famous like Harlem, Upper West Side, Greenwich Village, Williamsburg, and the list goes on. So where should you move? Most everyone, we included will suggest you to get to know the city a bit first, research, and also just walk around the neighbourhoods and see which atmosphere fits you best.

Ultra-Luxury Penthouses & Lofts

Of course, some of the super-rich of the USA have ultra-luxury apartments in New York. Among them Superstars like Jay-Z & Beyonce and Justin Timberlake. One of the most impressive though has to be Jeff Bezos’ $80 million apartment in Manhattan.

Worst Neighbourhoods in NY – Danger, Crime, Low Standard of Living

The worst neighborhoods in New York are decided by how dangerous it is, how good they are to live in, and more. And if you think that you can make a clever deal by moving to one of these areas you are mistaken, as none of these neighborhoods are especially cheap.

• Woodlawn-Nordwood
• Hunts Point
• Brownsville
• Fordham
• Mott Haven
• Fordham
• Bedford Park
• Downtown

New York’s Hippest Neighborhoods – The Places to be in New York

There are a few neighborhoods you can’t miss. These are the classics like SoHo or TriBeCa. The top neighborhoods in New York City to invest are the famous ones of course. Think Greenwich Village or Williamsburg. The other famous ones, Astoria (Queens), Bushwick (Brooklyn), or Greenpoint (Brooklyn) are also safe bets, especially for younger or more culture-oriented movers. Some ones to keep an eye out for are Chelsea, where the nearby Hudson Yards project is driving down prices of top and up-and-coming real estate, or Bedford-Stuyvesant the prodigal son of hip New York neighborhoods, and lastly Park Slope, which will likely see a sharp increase in prices over the next years, meaning investment now is likely to pay off.

Classics: SoHo, TriBeCa, Greenwich Village, Midtwon

Hip: Astoria, Bushwick, Greenpoint

Future Stars: Chelsea, Bedford-Stuyvesant, Park Slope



You want more info. Where to buy an apartment in New York City? We tell you everything you need to know

• Best Neighborhoods to Buy – New York City

Best New York Neighbourhoods List

The best New York neighborhoods are difficult to pin down. Everyone has their own preferences, and their own needs. Making it impossible to say definitively what the best are. Below are what are considered some of the top New York neighborhoods.

1. TriBeCa
2. Gramercy
3. Battery Park City
4. Nolita
5. SoHo
6. Dumbo
7. Financial District
8. Murray Hill
9. NoHo
10. Kips Bay
11. Prospect Heights
12. Brooklyn Heights

Should I Rent a Co-op Apartment?

Co-ops are probably more famous and more popular in New York than anywhere else. Here, they make up almost half of all residences. Co-ops are slightly more challenging to get, with a complicated and time-consuming process, but the time investment is worth the reward, with typically lower property taxes, the possibility to build equity, and more.

What is a Co-op Apartment? Real Estate Corporation

A co-op apartment is an apartment which is administrated by a housing cooperative. If you buy a co-op apartment, you are not actually buying the property, i.e. the four walls which you intend to live in. Rather, you are buying a share in a legal entity. The shares you buy entitle you to use a specific part of the building. Therefore, you are not the owner of real property, but rather a membership which allows you to use the apartment you live in. This also means of course that you do not take out a mortgage, but rather share loans, i.e. a loan to pay for the shares.

• You buy shares, not property

Why you Should choose a Co-op – Explanation

Because you are not the owner of the property itself, you do not have to pay property taxes. Rather the cooperative pays the property taxes for the whole building, and these are divided among the members, i.e. residents. The main advantage of a co-op is that it is cheaper. The property taxes which each resident pays are lower, and any additional fees are also lower, because the co-op is not intended to make profit. Lastly, residents in co-ops, despite not actually owning the property, are entitled to many tax deductions which real estate owners are entitled to.

• Cheaper

How to buy a Co-op Apartment in New York – Step-by-Step

There are a few steps to go through before buying into the cooperative. Before approaching a co-op, or identifying an apartment which you are interested in, you have to gather an attorney, a mortgage broker, and an engineer. Although this is not necessary, it greatly increases your chances of getting the apartment you want. This is because, once you’ve identified the apartment you want, you apply. Your application is decided upon by the board. This board obviously wants the best possible residents, therefore it’s important to present yourself as a serious buyer. All co-ops have a certain list of requirements, which include the amount of downpayment you need to pay, and how much financial reserves you have. Following this, you contact the seller, begin the title search and mortgage application, and close the purchase.



Buying an Apartment NYC – Checklist

If you want to buy an apartment in New York, these are the most important things to do and keep in mind.

1. Decide! Rent or buy?
2. Prepare! Visit the city, research the market
3. Lawyer Up! Find your attorney
4. Choose affordable! Sponsor units, coops, or up-and-coming neighborhoods
]]> https://lukinski.com/buy-apartment-costs-real-estate-agents-renting-ownership-rent/ Mon, 14 Sep 2020 14:51:24 +0000 https://lukinski.de/?p=29908 Buying an Apartment – The decision to buy an apartment is made by most buyers for two reasons. The first reason may be that the buyer wants to use the apartment to live in it themselves. Other buyers are looking for an investment that will yield a good return in the medium- or long-term.

Decisions before your Purchase

If you would like to buy an apartment, you have the choice of different objects. You can invest in an expensive apartment in an advantageous downtown location to rent it on the free housing market or to move in yourself and live in an attractive and popular residential area. Alternatively, you can opt for an apartment that is located on the outskirts of a city or in the countryside. There are also multi-family houses there, where the apartments are sometimes offered at very reasonable prices. If you are looking for a form of housing that is cheap in terms of monthly costs and if you cannot invest a high purchase price, this option is a very good choice for you.

Purchase Apartments Before Completion

As an alternative to buying an apartment that is already ready for occupancy or rented, you can purchase apartments before the house is built for the purpose of rental or for your own use. When the construction project becomes known, contact the developer to reserve the property of your choice. This is possible if the apartments are to be sold individually to different owners after completion of the construction project. Other construction projects are commissioned by a developer. In most cases, the purpose of the developer is to rent out the apartments himself. It will not be possible to buy the apartments individually.

Rental or Personal Use

Having acquired an apartment, you are free to do with it what you will. This may be renting it out, or using it as a residence. Of course, renting is a smart investment, given that it gives you the chance to pay off your mortgage from the rent you receive from tenants. There is of course also the downside of the time it takes to invest in the property. This may be a time investment beforehand, such as in the form of renovation, or in repairs, given that you do not have a property manager.

Real Estate as Capital Investment: Special

1. Part: Classical or exotic investment – Which real estate is suitable as capital investment?
2. Part: Real estate as capital investment – What do I have to pay attention to?

Purchase of an Apartment in Need of Renovation

The purchase of apartment buildings which are in need of renovation is becoming increasingly popular. There are advantages and disadvantages associated with the renovation of apartments, which you should know before you make the purchase. The disadvantage is that you cannot use the apartment immediately after the purchase. You have to make further investments.



Investment Despite Need for Renovation

The advantages outweigh this disadvantage, however, so that many investors consciously decide to buy an apartment in need of renovation. You have the opportunity to design the apartment as you imagine it in the course of a renovation.

You can integrate new windows and doors and change the room layout. The laying of pipes and electrical lines is much easier when an apartment is renovated. If you already live in the apartment, it is more complicated and costly to adapt the structure of the electrical system or piping to your ideas.

Design the ceilings, walls and floors exactly the way you want them. An object in need of renovation is usually available at a reasonable price.

However, please make sure that there are no conditions imposed by the monument protection authorities for this object. Otherwise, it is important that you consider whether you are prepared to meet these conditions before you buy. Often the editions are connected with a medium or high financial expenditure. You will have to pay this in addition to the purchase price of the apartment and the costs of the renovation.

Purchase of Modern Apartments Without the Need for Renovation

Very popular on the market are apartments that have no need for renovation and are equipped with modern facilities. You buy such an apartment for a higher purchase price. The apartments are ready for immediate occupancy. They have a positive energetic balance and can also be retrofitted to a certain extent according to the individual ideas of the new owner.



Old Building or Apartment in a Modern New Building

Before buying, consider whether you would prefer a old building flat or an apartment in a new building. Both types of living differ from each other. Old buildings are characterized by high rooms and large windows. The rooms are very spacious. Many buyers find this an advantage. However, you should also consider the heating costs for these apartments. These are much higher than in modern apartments, where the room height is usually lower, due to the room height and the resulting larger volume.

In modern apartments the rooms are often smaller. Apartments in an old building also have a special charm, which many potential buyers love very much. It is a very individual decision and also a decision of individual taste whether they prefer an old building apartment or an apartment in a newer building. If you decide on an old building, it is important that the building has already undergone an energetic renovation. This measure can reduce heating costs quite significantly.

Purchase of a Rented Apartment

With the decision to buy a rented apartment, you take over the rental contract in its current form. You do not have the right to make changes to this contract. Rent increases are only permitted within the framework of the legal regulations.

If you are planning a renovation of the apartment, you are obliged to agree this with the landlord. You may not demand that the tenant leave the apartment for the period of the renovation. However, you have the option of providing the tenant with a replacement apartment. You will have to pay for the costs.

Furthermore, it is important to know that you can only terminate the rental agreement if you register your own needs or if the tenant persistently breaches obligations under the rental agreement. This includes repeated non-payment of rent, but also taking in another resident without you having been informed.

Cancellation of Own Use

If the landlord behaves in such a way, as it is given in the lease, only the own need notice remains to you. You can only give this notice if you really intend to live in the apartment yourself. Sometimes you even have to prove this. Before buying a rented out apartment, you should be sure that you do not want to live in the apartment yourself or that your claim for personal use will be upheld by a court. Every tenant has the right not to accept a notice of termination for own use at first and to demand a review by a court. In this case your move into the apartment would be delayed. Of course you have the possibility to contact the tenant before the planned sale. Inform him/her about the planned personal use so that he/she can prepare for it. In many cases the tenants are willing to move out and you can settle the matter amicably.

Demand for Living space

The size of average apartments in Germany is between 30 and 150 m². The apartments have one to five rooms. They are equipped with a private bathroom and a kitchen. If you buy an apartment on the current housing market, you will hardly get offers without your own bathroom. Even a coal heating system is only available very sporadically. The preferred types of heating for apartments in apartment buildings are gas, district heating or heating oil.

Before you decide to buy an apartment, it is important that you determine your real housing needs. In doing so, you should not only start from the current situation. Try to imagine how you want to live in a few years. Most buyers who buy their own home make an investment for life. And so you should know if they want to enlarge their family in the future, if they need a study after finishing a professional training or if they want to set up a guest room for friends or family members.

Unlike the purchase of a single-family home, buying your own apartment offers you only limited possibilities for expanding your living space. You can only share very large rooms. An extension, as it is possible in many single-family homes with a large garden, cannot be realized in an apartment. For this reason, it is recommended that you choose a property that offers one or two rooms more than you currently need. If the purchase price is right, you will also be very well prepared for future life situations after buying the apartment.

On average, apartments in Germany have two to four rooms. The three-room apartment is particularly popular. It is considered an ideal form of living for singles, for single people with children and for couples who do not have children. The average size of the three-room apartment is about 80 m².
Apartments with one room are rather unsuitable for purchase, as they offer only limited possibilities for individual development. Very large apartments with more than five rooms are rare and are often only offered in larger cities. They are located in old city villas and are often very expensive.

Community of Owners

As the owner of an apartment in an apartment building, you become part of a community of owners. The community of owners makes decisions regarding matters that affect all owners. These include the design of the facade, the renovation of the roof, but also the installation of a TV system and the design of the garden.

The majority of the owners’ association has a quorum. This means that you may have to accept decisions that you would have made differently yourself.

As an owner in a multi-family house, you build up reserves for possible renovations. You also participate in the insurance that has to be paid for the building. Property tax is also paid proportionately. These reserves are paid into an account on a monthly basis and are similar to the service charge payments that a tenant has to make. As the owner of the apartment, you are obliged to pay these benefits.

Conclusion: Buying an Apartment

Buying your own apartment is considered very lucrative, especially in larger cities. If you are interested in buying an apartment, Lukinski can be your partner for the purchase. We have specialized in this region and offer you not only a professional purchase transaction, but also a very good knowledge of the market. Get in touch with us by phone to clarify any questions that may arise. We would be happy to arrange a personal appointment with you and present various properties to you.

]]> https://lukinski.com/jeff-bezos-80-million-penthouse-new-york-city-inside/ Mon, 02 Mar 2020 04:31:53 +0000 https://lukinski.de/?p=19338 New York – One of the most expensive penthouses in New York City. Jeff Bezos is the owner of this luxury loft on fifth avenue. The penthouse is worth some $80 mil., and will be Jeff Bezos New York Home. This is surely one of the most luxurious apartments in New York.

$80 Million Penthouse in New York City!

Jeff Bezos New York Home is perhaps the most expensive penthouse in New York. Jeff Bezos was for a long time the richest man on earth, and is still only placed second as the CEO and founder of mega-company Amazon. At age 58, he’s accumulated $133 billion in assets. On average, he makes $6.7 million a day. How do you live as a super rich person and where? Bezos chose New York City. An $80 million penthouse in New York City. CNBC reporter Robert Frank will take us there for an exclusive look. Whether you want to buy a house in New York, or buy an apartment in New York, this is surely the best inspiration coming from a celebrity home.



Where is Jeff Bezos Apartment in New York? Location

The adress of Jeff Bezos NYC apartment is 212 Fifth Avenue. Of course the luxury is at home on fifth avenue. Jeff Bezos’ apartment is in fact the most expensive apartment ever bought south of 42nd street in New York.

• 212 Fifth Avenue

Massive Downtown Penthouse – Ultra Luxury for a Billionaire

This is how luxuriously Jeff Bezos lives in his New York City apartment! What kind of apartment does a billionaire like Bezoz buy? Although Amazon abandoned plans for a headquarters in NYC, CEO Jeff Bezos still went to the Mege metropolis. His choice was, of course, an exclusive luxury property. This $80 million home in Manhattan. CNBC reporter Robert Frank takes a look at the three-story penthouse in New York City.

Inside: New York City Penthouse

Jeff Bezos: Assets and Person

Jeff Bozos is currently the second-richest entrepreneur in the world.

• Jeff Bezos
• Age: 56 years
• Company: Amazon
• Total assets $133 billion
• $6.7 million a day

Conversation at Amazon Prime Video

Amazon Documentary: Building the largest e-commerce in the world

The company has developed extremely well. Amazon boss Jeff Bezos has meanwhile become the second richest man in the world as described above. Every second Euro in online trade is spent at Amazon.

Next Level: Data, Drones and …

No company stores more data about its users than Amazon, the former online bookseller. Is the IT giant with its unchecked growth about to turn our economic system upside down?

New York City – World’s Biggest Metropolis

New York City is an international metropolis, the big advertising agencies, investment funds, here sits whoever has rank and name. Manhattan’s Midtown is home to some of the world-famous symbols of New York City; buildings such as the Empire State Building, Rockefeller Center and the Grand Central Terminal. Fifth Avenue is one of the best shopping districts in the world and Times Square and Broadway offer New York City an almost endless supply of theatre and entertainment.

Living the Dream – Property Investment in New York

Many people dream of the spacious industrial loft on the upper east side, others the small apartment in Brooklyn, or others still the mega-penthouses on Madison Avenue. New York has real estate for everyone. If you want to buy an apartment in New York, or buy a house in New York, you’ll be profiting for years to come thanks to the strong market and heavy economy.

The Big Apple – New York’s Beauty

Central Park is the green lung of the city, where New Yorkers come to move and relax. New York has many different facets and beautiful sides. There are uncountable many NYC neighborhoods, and you are bound to find the right one for you!

Are you interested in the city? Read more about luxury real estate in New York here.

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