What you have to ask yourself before buying a property and what about mortgages?

 What you have to ask yourself before buying a property and what about mortgages

buying a property
 What you have to ask yourself before buying a property and what about mortgages?


1 / Why buy?

There are different reasons to buy real estate in New York. You may be living here or want to have a home for you and your family. Or maybe help a family buy. Finally, it can be for investment purposes. In all these cases, we can help you with your purchase and explain the factors to consider. Look at the top 10 reasons to buy an apartment in New York.


2 / Will you pay in cash or would you like to get financing?

Cash purchases can lead to a stronger negotiating position with the seller. However, the purchase process generates tax advantages and eligible foreign buyers can obtain property finance up to 70% of the purchase price (depending on capacity)

Typical loan terms are:


$100,000 on deposit at the bank.

At least 30% of the payment.

12-month reserve (mortgage repayment, maintenance and taxes), plus $100,000.

5-30 year mortgages at a fixed or variable interest rate.

$10,000 was deposited in the bank.


Cooperatives have a list of pre-approved banks. This is a list of financial institutions that have signed an agreement with the Union to offer your shares if you are not familiar with mortgage payments. We also have a strong relationship with many mortgage brokers who suit the needs of the foreign buyer. Please contact us via our contact form if you have any additional questions regarding funding.


3 / Do you have the necessary documents ready?

When you buy an apartment (apartment) all you need is money. But cooperatives are different. The cooperative management is likely to request the following documents for approval. Your agent can help you assemble all this before searching so that time is not wasted when you find your perfect apartment.


A letter from the employer explaining the job title, salary and length of service

2.3 Last income receipts

Latest tax returns

Bank statement for the last two to three months

Names, occupations and ages of all family members living in the apartment.

Weight, age and photography of your pets.

Two personal reference letters

Two business reference letters

Check other assets, such as real estate, securities, etc.

ID with photo (driver's license or passport) and visa


4 / What are the purchase costs?

The good news is that using an agent to buy your home is free. Therefore, you do not need to pay the broker's commission. In other words, our services to help you buy your apartment or home in New York are completely free! Once you select an interesting property, the purchase costs are:


For the seller:

Broker's Commission

State property taxes (0.4%)

City property taxes (1% on the first 500 thousand, 1.425% after)


For the buyer

Lawyer

Evaluation and inspection fees

Find an address and insurance

Mansion tax (1% of properties worth more than 1 million)

Asset rate and mortgage points (1%-4%)

Mortgage registration tax (1.75% - 2.175%)


5 / How do you find a property?

You can search the Internet and try to find properties for sale on different websites to get an idea. However, if you decide to do it yourself, keep in mind that finding the right place can take a very long time and frustrating. This is because most apartments in New York are sold through intermediaries, members of REBNY, the New York Real Estate Board, which ensures the publication of new properties for sale first within the community. Having someone like us next to you not only gives you access to all the apartments on the market, but we also understand very well what it takes to secure the apartment you want. In such a competitive market, it is necessary to act quickly and accurately, so it is useful to know the rules of the game.


6 / How long does it take to complete a purchase?

Finding somewhere can take weeks to years, depending on your taste and preferred date of change. Once you find your new home, it's now time to work fast. Make sure you have documents and money ready so that no one can take your new home or invest from you! Then it is time for the approval of the Building or Cooperative Council. Once approved, you will be asked to deposit the funds and if the apartment is empty, you can get out immediately. The whole process usually takes at least a month, but may take longer.


7 / What is the difference between co-op and buildings?
In the buildings (apartment) the owner owns an individual apartment. In addition, the buyer has an indivisible interest in common items, such as exterior walls, ceiling, swimming pool and other recreational areas. In the co-op housing project, the owner owns stakes in a cooperative construction company. Cooperatives generally require the buyer to have a source of income here in the United States and goods to reside in the United States (at least most of which must be in the United States), because they are very conservative communities. If the company is forced, for any reason, to sue the owner, it is very difficult to succeed in litigation. Thus, foreign buyers are limited to the purchase of apartments (housing units), residential units (cooperative with common ownership rules) and housing. However, the buyers

8 / Where to buy?
This is an important issue. If you've visited New York before, you may have a preference, but the reality of life here is quite different. Many other factors play a role, such as: Where is your work or college? Where's your kid's school? Is the apartment the size you're looking for? What kind of energy in the neighborhood makes you feel at home? And, of course, what's your budget? We will be happy to hear your story and help set priorities.

9 / If I want to buy, what are the usual monthly costs?
For residential units, the usual expenses generally range from US$0.70 to US$1.25 per square foot per month. These expenses include heating, electricity, cleaning of public areas, water, basic cables, security, construction security, building facilities management (gym, concierge, lounge, swimming pool, games room, etc.). In addition to general construction expenses, you will have to pay property taxes, which amount to about 0.1% of the estimated value - a value granted to property by the municipal government.

Cooperatives charge maintenance fees, which include all overheads, taxes (paid by the owner) and interest on the mortgage on the building, if any. The company may have mortgages suspended on the building (to repair the roof or for any other reason) and the interest is transferred to the cooperative shareholders. For this reason, the monthly costs of cooperatives are often higher for maintenance (even after adjusting taxes that are included in maintenance fees), because cooperatives, by law, cannot borrow.