Buying a home is the biggest financial transaction most people will make in their lives. This is especially true in New York, where residential property values are among the highest in the country. Whether the home in question is an apartment, a condo or a suburban house, there are some questions every potential buyer should ask. There are questions to ask at every stage of the process, through the day the deal is finalized at a real estate closing.
Anyone who has ventured into New York's residential property market recently knows that apartment and condo prices in the city are at an all-time high. People who are in the market for a new home may wonder whether they can get a good deal on a short sale. They may be able to in some cases, but a buyer should be prepared for some delays and uncertainty.
For landlords of residential property in New York, there are a few points to keep in mind as we enter the tax season. Rent payments from residential property are of course considered taxable income. But rental income also includes advance rent, which must be reported in the year it was received. So, if a landlord collects the first and last months of rent in the first year of a multi-year lease, both payments are included in gross income in that first year.
Owning real estate in New York can be both exciting and lucrative; however, this experience can have its fair share of obstacles. Whether people own individual property, a small business, a co-op, condominium buildings or large commercial properties, real estate ownership requires several steps to be carried out. Unfortunately, issues can occur during a transaction or disputes can emerge regarding co-ownership or the management of the property.
For New York residential real estate developers, obtaining financing on favorable terms is essential. Once financing is obtained, staying current on the loan payments is also critical -- a default can put the project in jeopardy of foreclosure. Recently the developer of a luxury condo tower on East 58th Street narrowly avoided foreclosure, but the survival of the project remains in question.
Residential real estate can be a profitable investment in New York City. The presence of numerous major companies in the city, combined with a large population of high-income professionals, helps ensure a stable real estate market. Foreign investors have also done a lot to keep values high. These factors have helped make New York one of the first real estate markets to recover from the Great Recession a few years ago.
Whether it's an apartment, condo or townhouse, buying a home in New York City is a significant investment. Once you have found a potential home and made an offer, the seller will typically send you their proposed contract. Before signing, it's critical to make sure it includes some key provisions that will protect your interests.
A New York man has filed a lawsuit claiming that landlords in the city routinely violate a law protecting elderly and disabled tenants when a building is converted to luxury condos. According to the lawsuit, that law requires landlords to provide disabled renters and those over age 62 the option to stay on in their apartments after a conversion. The lawsuit requests class action status and seeks $100 million in damages.
In last week's post we talked about the importance of ensuring the seller has clear title before closing any commercial or residential real estate transaction in New York. This week we'll discuss some of the common title issues that can appear in a title search, and which generally must be resolved before the deal is concluded.
In any New York residential real estate transaction, it is critical for the buyer to ensure the seller has clear title to the property. As we have discussed in a previous post, purchasing a title insurance policy is an important step and is usually required by lenders as a condition of financing. But what if the title search performed by the insurer turns up a serious defect? In that event the buyer may opt out of the transaction altogether. Alternatively, the buyer or seller can take steps to cure the defect.