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Buy an Apartment Los Angeles – Everything to Know Explained, Easy Guide

Laura — Tue, 08 Dec 2020 13:12:26 +0000

Los Angeles – How to buy an Apartment in Hollywood, Bel-Air, or downtown. We give you a full explanation and step-by-step guide to everything to know when buying an apartment in Los Angeles. From mortgage, to which areas to buy in Los Angeles, and everything else you need. Real Estate properties, like apartments, penthouses, lofts in this California city mean you can be beach-side, in your pool, or on your terrace with Hollywood just next door.

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

The City of Angels – Buying an Apartment L.A.

Los Angeles, where dreams come true. The home of celebrities, hollywood, a sprawling cityscape, beach and surf, 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 experiennce 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 wrapping your head around where and how to live. Do you choose Mid City or and a retail paradise, or Silver Lake, and hang out with the young students? We give you the full run-down below. Some people buy a house in L.A., but no doubt, buying an apartment is a good decision.

Los Angeles Economy – Overview

Los Angeles has a massive economy, third largest in the world behind Tokyo and New York. Its strength is of course the creative sector. Hollywood is the world’s largest film production area, and countless stars and starlets have their villas and mansions in the city. This does not paint the full picture though. It is also home to a booming high-tech industry with a surge of startups heading to the seaside city. There is also a strong aerospace and transportation industry, as well as, perhaps unexpectedly, the nation’s largest international trade industry.

GDP: 941,06 bil.
Creative, high-tech & aerospace industries

If you’re looking to invest in real estate, it’s probably good to think about forming an LLC, an S corporation, or a limited partnership!

Los Angeles Drone – How Beautiful it can Be

Los Angeles has a ton to offer in visual pleasure. Sundown by the ocean, beaches, and skyscrapers. Take a look at Los Angeles drone footage:

Full L.A. Guide – Hot Neighbourhoods + More

Buy or Rent? Calculation Explained

Whether to buy or rent, you’re going to be paying a high price in L.A. Whether to buy or rent depends on the classic ‘break-even point’. How long you would have to pay rent in order to break even the amount which you would need to pay off a house. E.g. in Los Angeles, a median-priced home is around $630.000, and you may be paying rent around $2.000. That means, once you’ve lived in your residence for 6 years, you would have paid as much rent, to have been able to buy it. In short, whether to buy or rent depends on this: Assuming you live in a residence for at least five years, your rent needs to be lower than $2.600 in order to make renting more viable.

Also, in Los Angeles, it may be even better to buy than in other places, considering manageable property taxes in L.A. That means owning real estate is not a high recurring investment.

Buy if your rent > $2.600

Is it a Good Time to Buy an Apartment in Los Angeles?

Maybe. At the moment, high vacancy rates mean low rent prices. That means it may be more beneficial to rent at the moment. Considering the growing market though, it may be clever to invest at the moment, where high vacancy rates may have more landlords selling their property at higher rates than usual, driving down prices. That means, when the market inevitably recovers, you’re likely to make profit quickly.

What state has the highest property tax rate? Ranking

Property Tax Rates by State – List

Los Angeles Real Estate Market – Explanation

The Los Angeles real estate market, like so many of U.S.’ super cities, is doing well. For example, the year-over-year amount of sales of single-family homes increased by 23,2%. The median home price is at a strong $630.000, showing just how exclusive properties are here. Los Angeles is neither a sellers nor a buyers market. There are just as many real estate listings as there are sales. Combining this with the high increase shows the strong turnover, and ripe investment opportunities. Prices are also increasing, taking single-family residences, by over 16%.

Real Estate Price Development

Home prices in the metropolitan area of Los Angeles increase by about 13% annually, with the number of sales also increasing over the past year. The median price of an apartment is now $667.000. On top of this, rental prices have been steady in the past years, when looking at average rent.

2017: 2.281 $/m²
2018: 2.385 $/m²
2019: 2.516 $/m²
2020: 2.524 $/m²

What you have to know About L.A. Areas

Los Angeles is a massive city, spanning multiple counties. It’s near impossible to decide where to live. Generally, there are those that want to live in the famous residential areas of Bel-Air or Beverly Hills, there are also people who want the tumult of downtown LA, or younger people, and those looking for a more comfortable atmosphere will head to e.g. Silver Lake or Mid City. In general, for Los Angeles, it’s a good choice to rent, as opposed to buy. With purchases prices being comparatively high.

Lowest rent: Jefferson Park $1.355
Highest rent: North of Montana $4.690

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

When buying any property, you will need to pay a downpayment on your mortgage. In L.A., with comparatively high real estate prices, your downpayment should be at least 20% in order to avoid the likely very high mortgage interest rates.

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 Los Angeles?

There’s of course some caveats to buying an apartment in L.A. 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, then taxes, and then move in.

Popular Types of Properties in L.A.

In L.A., there are a few different types of popular properties. The most popular being, as in most other suburban areas, single-family homes, duplexes, and condos. These are popular because they allow for a fairly private space, without the hassle of neighbours which are door-to-door with you. Note, duplexes (or even triplexes) are typically hard to own for the resident, as investors tend to buy these and rent them. Other types of property are townhomes, small lot homes (advantage: no homeowners’ association!), coops, much like the apartment market in New York, TICs (Tenancy in Common), and of course the infamous vacant lots, where you just buy a piece of empty land.

Single-Family Home
Duplex
Condo
Townhome
Small-lot Home
TICs
Vacant Lots

Before – Buying Apartment Preparation & Planning

In L.A., it’s just as important, if not more important to get pre-approved. That means having your loan provider provde certification that you will be able to finance the mortgage on your home.

Get Mortgage Pre-Approval!

Negotiation – Paying too Much on your House

In L.A., strong changes in price as a result of negotiation are rare. The vast majority of properties are sold at or around listing price. Meaning there is little to no negotiation, and when, this negotiation takes place in small degrees.

Taxes – Extra Real Estate Costs

Of course there’s different taxes in Los Angeles than elsewhere in the country. It’s important to be in the know about the unique taxes, from property taxes to transfer taxes in California if you’re looking to own property in Los Angeles.

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. Los Angeles has a broad span in homeowners’ insurance amounts. In some parts you can pay as little as $837, with L.A.’s average amount being $1.116.

$1.116/year homeowner’s insurance

Tips to Save Money – Lower your Homeowners Insurance!

These are the number one tips to reduce the amount you’ll have to spend on homeowners insurance.

Install a safety system for your home that includes fire, smoke and carbon monoxide alarms
Convert your older house to comply with earthquake regulations
Replace your roof with fireproof materials
Inquire with your insurance agent if you qualify for discount programs
Repair and replace wiring and plumbing to bring it into line with current building codes

Where to Live in L.A. – Best Neighborhoods

You’ve probably heard of Compton, Inglewood, Hollywood, and the like. You also probably have some preconception about how dangerous or safe it is here, whether you’d like to live here or not. We give you a full-researched list of the worst neighborhoods to live in Los Angeles.

Homes for the Ultra-Rich

Of course, some of the super-rich of the USA have ultra-luxury houses in L.A. Among them, superstars from all over, and pretty much every film star has at least one residence in Los Angeles. Below we have one of these ultra high-end properties, worth $50 mil. Of course, you’ll find it in the legendary Bel-Air neighborhood.

Worst Neighbourhoods in Los Angeles – Danger, Crime, Low Standard of Living

Skid Row
Fashion District
South Central L.A.
Compton
Central City
Jefferson Park

The Places to be in Los Angeles

There are a few neighborhoods you can’t miss. These are the classics like Hollywood or Bel Air. The top neighborhoods in Los Angeles to invest are the famous ones of course, but there’s a few ones to keep in mind if you’re looking to be in the place to be. Hip neighborhoods are plenty in L.A., like Culver City or Silver Lake. Some that you may have missed include Echo Park, Frogtown, and Tujunga.

Classics: Hollywood, Beverly Hills/Bel-Air, Downtown

Hip: Fairfax, El Segundo, Chinatown, Culver City

Outside Call: Echo Park, Frogtown, Tujunga

You want more info. Where to buy an apartment in Los Angeles? We tell you everything you need to know

Best Neighborhoods to Buy – Los Angeles

Best School Districts Los Angeles

Thinking about moving to L.A.? These are the best school districts, taking into account quality of education, safety, and more.

Hermosa Beach City Elementary
Newhall
South Pasadena Unified
Palos Verdes Unified
San Marino Unified
Walnut Valley Unified
LA Canada Unified
Temple City Unified
Manhattan Beach Unified
Arcadia Unified

Should I Rent a Co-op Apartment?

Co-ops are probably more famous and more popular in New York than anywhere else. Still you’ll find them from time to time in Los Angeles.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 Los Angeles – 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 Los Angeles – Checklist

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

Decide! Rent or buy?
Prepare! Visit the city, research the market
Lawyer Up! Find your attorney
Choose affordable! Sponsor units, coops, or up-and-coming neighborhoods

Buying an Apartment – Full Guide, Easily Explained

Laura — Tue, 01 Dec 2020 15:43:06 +0000

Buying an Apartment – A full guide on how to buy an apartment. We explain everything you need to know about buying an apartment in the U.S., taking you through the whole process, and explaining simply all details, and not-to-forget steps. This should give you everything you need to know before starting your search for an apartment.

Step 1 to Financial Freedom – Buy Real Estate

Owning real estate. That’s the way to go. But you may not have the $100.000 sitting in your bank account to pay for such a hefty downpayment on your mortgage. The better choice here is to invest in an apartment. Below we take you through the full process, from where to start, to where it ends and moving into your brand new own apartment. These apartments may be lofts, penthouses, single-bedrooms, or shared flats. The same process goes for all these types of residences in the USA.

Advantages of Buying vs. Renting

You may not be sure about whether you want to buy or rent an apartment. Real estate gurus everywhere will either swear that you have to rent, or that you have to buy. In the end it’s not such a simple decision, and what the best choice in your case is, depends on many factors, such as your income, financial reserves, the location of the property, etc. The number one factor is likely how long you intend to live in the property.

Calculate your Finances

When making this decision, the most important calculation is comparing rent to mortgage payments. Let’s say you find your dream property, and you want to live here for the next 10 years. If you can rent this property for e.g. $1.000 a month, or you can buy it and pay $1.000 a month in mortgage for 10 years you can do the math yourself. You will live there either way, but when you buy it and pay mortgage you are building equity, and once you move out, you can sell it for profit. Ownership as opposed to renting also comes with a number of tax deductions which lower the amount of money you actually invest.

When you Should Rent

Of course you shouldn’t forget the fact that a purchase always includes a downpayment. If you are strapped for cash, and cannot afford this downpayment, or it would force you to take out another loan. Then you are better off renting, and avoiding high interest. This side also has tax perks, such as not having to pay property taxes.

Top Reasons to Buy an Apartment

There’s many reasons to buy an apartment. These are the top reasons which should motivate you.

Attractive returns on Investment
Danger of Depreciation
Perfect Preparation for Retirement
Flexibility
Safe Investment
Safety rom Inflation
Tax deductibles

Preparing Property Purchase – Before Buying

There are a few things to take care of before you even start looking for properties. Of course, feel free to scope out the market before doing these things, but remember that it will be quite difficult to make a serious offer for an apartmentwithout these following things.

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

What Real Estate Should I Invest in?

Check your Credit Score – Financing an Apartment

This is the number one thing to do. Before doing going on the hunt for any real estate you should know whether you are even in financial shape to buy. Credit scores are compiled by three so-called credit bureaus: Transunion, Equifax, and Experian. They provide you a report, which can be turned into a score. This score will also play a role in deciding what type of mortgage you can get.

Contacts – Attorneys, Mortgage Broker, etc.

Before buying you need to have a few professionals by your side. It’s probably good to have an attorney set up beforehand, and in many places, e.g. when you buy an apartment in New York, it is even mandatory. Additionally, you may opt for a mortgage broker (especially when buying into a co-op, see below), and a real estate agent.

Mortgage Preapproval – Insurance for Loan

Before you go on the hunt for an apartment, you can (and should) obtain preapproval for a mortgage. This consists of a letter which certifies that you are in fact capable of obtaining the mortgage. In a sense it is the bank telling the agent and seller, that they will lend you the necessary funds to buy a property worth x dollars. This is a vital part of the process, as most real estate agents and brokers will refuse to do showings or take up contact without such a preapproval.

Let us guide you through the confusing world of mortgage:

Buying without Mortgage Preapproval – Paying Apartment in Cash

It is possible to buy without a mortgage preapproval, given that you are paying everything upfront. This is of course not a common case, but given that you will not get a mortgage for the property you are going to buy, you can approach brokers and sellers without a mortgage preapproval. In this case though, you must present proof of funds to view properties.

Now What? More Apartment Search Tips

Now that you’ve taken care of these things you can start to look around. It is best to first get an orientation of the market and how you want to buy. This is best done by taking frequent looks at real estate listing sites and going to open houses. Also, despite internet being pretty much everywhere by now, it’s never a bad idea to go in person to smaller real estate agencies in neighbourhoods which you are interested in. Some more old-fashioned shops may not be putting their listings online.

Readying Purchase – Costs Preparation

When you are preparing to buy your apartment, there are a few things to straighten out beforehand. Planning is as always key, and should include all additional costs. Note that of course these things differ in different areas. Buying an apartment in Chicago is very different from when you buy an apartment in L.A.

Taxes & Property Tax Rates

Of course, when thinking about finances you will have to consider the taxes. There are three different kinds. Three taxes you pay when buying property, which includes property tax. This property tax you also have to pay repeatedly when owning said property.

Want to learn more about property tax? We’ve got you covered

Property Taxes U.S. – Explained

Important Extra Details

There’s a ton of details you may forget about when buying a property, which bother you a lot later on. Think service charges, which you will pay to the owners of the building. Also important here, who takes care of these services, and is this company performing the services good? Also pay attention to any restrictions, like e.g. whether pets are allowed, and noise restrictions. There may also be difficult-to-detect issues in the neighbourhood, like a large shopping center opening very nearby which increases traffic, or a night club nearby which means noise at night. Or perhaps building issues are prevalent in the area because the ground is unstable. Many of these things will be highlighted by your solicitor, so make sure to listen well. The location is key, meaning New York will have different details to look out for than L.A. or Miami.

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

Next Steps – Building Inspections

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

Co-op Apartment – Buying Shares not Property

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? Meaning, Definition, Explanation

Why you Should choose a Co-op – Advantages

How to buy a Co-op Apartment – Step-by-Step Explanation

Special – Buy Apartment New York

New York, the city of dreams. You too can live your dream of owning real estate, and that in 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. But! New York has a complicated real estate system as everyone knows. Buying an apartment here means many different things than it does in other parts of the U.S.A.

We take care of all questions you could have in our full guide on buying an apartment in New York

Buy Apartment New York

Special – Buy Apartment Los Angeles

Los Angeles, where dreams come true. The home of celebrities, hollywood, a sprawling cityscape, beach and surf, 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 experiennce 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 wrapping your head around where and how to live. Do you choose Mid City or and a retail paradise, or Silver Lake, and hang out with the young students? We give you the full run-down below. The Los Angeles real estate market, like so many of U.S.’ super cities, is doing well. Los Angeles is neither a sellers nor a buyers market. Prices are also increasing, taking single-family residences, by over 16%.

We take care of all questions you could have in our full guide on buying an apartment in Los Angeles

Buy Apartment Los Angeles

Checklist – Overview of Process: Buying Apartment

These are the most important things you need to do before and as you buy your apartment. Don’t neglect these steps, as they are each important in their own right.

Preparation Steps for Buying an Apartment

The most important things to be certain of before buying an apartment are:

Check Credit Score
Gather Professionals
Mortgage Preapproval
Remember the Details!

Remember When Buying the Apartment! Important Final Steps

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

Make an Offer
Negotiate Smart!
Inspect
Renegotiate
Walk-Through (Important!)

Buy an Apartment New York – Everything to Know Explained, Easy Guide

Laura — Tue, 01 Dec 2020 15:42:31 +0000

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

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

Next Steps – Building Inspections

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

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.

TriBeCa
Gramercy
Battery Park City
Nolita
SoHo
Dumbo
Financial District
Murray Hill
NoHo
Kips Bay
Prospect Heights
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

You buy shares, not property

Why you Should choose a Co-op – Explanation

Cheaper

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

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.

Decide! Rent or buy?
Prepare! Visit the city, research the market
Lawyer Up! Find your attorney
Choose affordable! Sponsor units, coops, or up-and-coming neighborhoods

Buy an Apartment: Costs, Real Estate Agents and Renting – Ownership Instead of Rent

Laura — Mon, 14 Sep 2020 14:51:24 +0000

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

Part: Classical or exotic investment – Which real estate is suitable as capital investment?
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.

Inside Jeff Bezos’ $80 million penthouse in New York City

L_kinski — Mon, 02 Mar 2020 04:31:53 +0000

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.