New York Insider Tips – January 2017
Sellers of 2+ residences in a single transaction are obligated to pay a commercial transfer tax rate to NYC, rather than a residential tax rate. This can add up to an additional 1-2% of combined purchase price to your closing costs.
Materials purchased for renovation to your home through your contractor – fixtures, compressors, central A/C, etc. – may be exempt from local sales tax with your invoices retained. There are exemption forms for this purpose. Consult your CPA.
Purchasing a pre-war home of 6+ rooms may require a substantial down payment. Many pre-war co-ops with larger, classic layouts have financial hurdles that exceed lending standards. Many are near the park on the Upper East & West Sides, and over 60 co-ops in these areas require you finance less than 60% of your purchase.
There are still over two dozen cooperative boards on the Upper East Side that require a purchaser to pay all-cash, and still have a multiple of the purchase price in assets after they’ve left the closing table.
The Financial District has become a magnet for those looking for condos, but note that this area is unique. Many condos are in re-purposed bank/office buildings. Streets were designed narrower downtown in the 1700s, and natural light is scarcer. Be prepared for smaller bedrooms with lot-line windows, and fewer sun-blasted spaces.