Housing in NYC for Incoming Banker
Hey everyone. I am looking at housing options for my new role in New York City. I have weighed renting vs buying a condo/apartment in Manhattan. It seems that purchasing a co-op is significantly cheaper than renting. I have seen multiple co-ops for sale on Zillow for 300K-450K, compared to paying around 3K for rent. Can anyone explain why this is or is not a good a idea?
no, no NO!! (assuming you're a first year analyst)
Do NOT buy a Co-op. You don't actually own the apartment. You own "shares" of the building and the right to live in said unit. Co-ops are cheap because they have massive maintenance fees. When something goes wrong with the building and needs to be replaced, there is what's called a "special assessment" fee. You would be insane to do this as a first year analyst and you also won't get approved. There is a month long board approval and interview process. You want flexibility. There is near 100% turnover at the analyst level for a reason. Also at co-ops you have to put down a massive amount. Some buildings require all cash purchases, some are 50%, down. etc.
I would suggest you live in the city for a few years first before even considering buying.
This is solid! I knew there had to be a catch. Thank you!
There’s no catch. He’s right about long approval process but the investment and appreciation are no different than a condo. Much of the HOA is for property taxes. You usually have to put down 20%, not more. But agree on not buying for a good 3 years.
Definitely do not. Move close to your office, ideally close enough to walk.
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