2022 Predictions for New York City Luxury Real Estate Market

2021 was a record-breaking year for the New York City luxury real estate market. In fact, Manhattan had an impressive $30 Billion on sales last year. With each New Year we receive the golden question of “what’s in store for the year ahead?”. While we do not have a crystal ball, we do have some key themes based on last year’s activity that help inform how the landscape of the 2022 NYC Luxury Market may shape up. In short, while there may be some slowdown relative to 2021, we do not see any signs of the pandemic recovery stopping in 2022.

Heading into 2022, we expect continued strength across the housing market. The start to the new year has already been a strong one for Manhattan luxury, marking the best start to a year since 2006. The week between Christmas and New Year saw 22 contracts signed on properties priced $4M and up.

We expect the following themes to rise to the top: Rising Prices, Rising Rates, Rising Investment in New York.

Rising Prices:

Prices have already begun to recover in the New York market, particularly in the luxury sector. Strong demand and shrinking supply has been placing upward pressure on pricing. This is likely to continue as inventory shortages may increase in certain pockets of the market, and we expect to demand to remain persistent. Price appreciation may not be as rapid as the past year, but we expect an upward trajectory. Additionally, supply disruptions that have increased input and replacement costs are contributing to rising prices.

Turn-Key:

Stemming off of the last point above, whether looking to buy or looking for a New York City luxury apartment for rent we expect a strong preference to remain for turn-key or renovated units. Challenges with labor costs as well as sources furniture, etc. has made a renovation a much larger and time consuming project that many individuals no longer want to do.

Rising Rates:

The Fed has given a confident signal that multiple interest rates are nearly certain this year. The most recent guidance from the Fed signaled 3 rates for 2022. Buyers have been enjoying historically low interest rates for years, so the initial rate hikes may cause an upfront “shock” to the market. Savvy Buyers that have been contemplating purchasing are moving to lock in rates and make the purchase before rates rise. 

Rising Investment in New York:

The city is incredibly excited to welcome a new Mayor and administration that has promised to shift the narrative of the city toward one of economic recovery and pro-business. A new Mayor could peak investors that were avoiding de Blasio’s New York. With the return of foreign buyers to New York City luxury real estate, rising inflation, and a strong rental market, we see a favorable environment for investors to consider New York for their investment.

Best Luxury Building Amenities in NYC

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Real estate agencies and home sellers are constantly upping their game, given the almost insatiable interest for New York City properties. As a result, developers use various luxury amenities and home features to raise the value of NYC’s luxury residential properties. And since luxury building amenities in NYC are becoming almost a precondition to enter the market in the face of increased demand, we share some of the most wanted luxury amenities in NYC residential buildings.  In fact, a recent survey has shown that as much as 87% of renters belonging to NYC high-end communities decide to extend their lease solely based on the amenities in the luxury building complex.

Pet-friendly

Given the hectic NYC streets and sparse green areas, many people are drawn to the idea of having access to a private dog park close to their homes. And let’s face it. Most NYC homeowners think of their dogs as members of their family. 

Hence, having an area where your furry friends can roam free is more than alluring. In light of this, living in a pet-friendly building is a must for any dog owners. And in many cases, the pet facilities can be both indoor and outdoor. There are even pet spas and grooming salons on-site for maximum convenience. Nowadays, advances in luxury living no longer focus solely on the particular needs and preferences of the homeowners, as many New Yorkers conflate the needs of their pets with their own needs.  

Room Service and Resident-only Restaurants

If you aim to live in a luxury building that focuses on exclusivity, you should consider purchasing a home in a building access that offers hotel-style services. Third-party food delivery has changed the way people order food. This makes collaborations with these services one of the high-class perks currently in vogue in NYC. 

 In addition, some luxury apartment complexes even have resident-only restaurants on offer. Let’s face it - it is hard to get more luxurious than this? If you opt for living in an ‘all needs satisfied at all times’ type of building, then fine dining should be one of the services you have access to any time of the day. 

 Aside from being able to order food round-the-clock, many luxury buildings extend this motto to anything else the residents might need. For instance, moving into your NYC luxury home should be quick and convenient with the help of professional third-party moving services recommended by the luxury building staff. An experienced moving company will cover everything you might need to ensure the relocation goes smoothly. 

Electric Vehicle Charging

Electric vehicles are the future, even though it will take a couple of years until people switch to them entirely. Some estimates predict that by 2030, the number of electric cars will grow from 3 million to 125 million. Many NYC apartment managers and homebuyers are seeing the potential of aligning with this trend.

 Consequently, one of the best luxury building amenities in NYC is electric vehicle charging stations. In fact, the installation of one charging station is relatively inexpensive as the costs range from $450 to $1000. Comparatively, this is a small price to pay for the benefits it provides in the long run. Hence, purchasing a home in a luxury building that contributes to the cause in this way allows you to give your contribution to the green living movement as well.

Co-working Space

The world of work is changing rapidly. And with it, going to an office to work is slowly becoming a thing of the past. What’s more, tech industry experts are becoming the nouveau riche. And where does an IT whizz or a CEO like to work from and socialize? If you aim to do work from home, why not do it alongside other successful and highly-competent individuals? Hence, having an outstandingly stimulating co-working space with high-speed internet in your building is greatly appreciated in NYC. 

NYC homebuyers are generally inclined to pay more for smart home technology features. In comparison, a co-working space where the residents can do business is definitely a step up. Since co-working spaces are akin to smaller eclectic offices, it makes sense to consult an interior designer or moving company to help you furnish the area with everything that you need to manage your business smoothly. A moving crew such as Clean Cut Moving can help with anything from packing, transportation, and assembling to the placement of desks, devices, and other equipment that makes up a state-of-the-art co-working space. 

Luxury Rooftop Areas

Rooftop areas are a real attention-grabber if done right. Rooftops can be transformed into fantastic community areas. The residents can drink their morning coffee, sunbathe, or throw parties, making the rooftop area a highly sought-after luxury amenity. What’s more, some NYC rooftops even have a pool to top it all off. Also, since winters in NYC can get quite cold, some even have built-in gas heaters that allow you to spend time on the rooftop throughout the year.

A gym is one of the most wanted luxury building amenities in NYC

As much as going to the gym is essential for your health and well-being, making the trip is sometimes too demanding. That is why many NYC luxury buildings owners choose to include state-of-the-art workout areas. These gyms offer both cardio and weight-lifting zones as well as spaces for the latest workout trends such as bouldering, calisthenics, etc. Be sure to consult a knowledgeable fitness instructor on how to use the space you have in the most efficient way possible. Note that you have to pay extra attention to your safety while using the gym equipment.

5 Holiday Scented Candles You Need for Your Home

Fragrance is one of our favorite and easiest ways to transform the feeling of a space. The power of scent transports us to another world and connects us with memories.

Whether you are looking for the smell of a freshly cut Christmas Tree or a crackling fire, these candles will add an instant touch of the Holidays to your home.

Flocon Candle Limited Edition

Each year Diptyque released a limited-edition candle for the season, and this year it is Flocon. The flacon, or snowflake, candle reveals notes of white musk mixed with honeyed accents of mimosa and winter bloom.

Available at Bluemercury

Jo Malone Glowing Embers Candle

Evoke the aura of a cozy den or library with a crackling fire, fresh log just tossed on, with this hand-poured candle from Jo Malone. Glowing Embers has very strong notes of smoke (in a good way) and woods.

Available at Bluemercury

NEST New York Holiday & Birchwood Pine Scented Candle

Perhaps the most fitting and synonymous with Holiday candles is the Birchwood Pine scent from nest. Fill your home with the aromatic scent of a freshly cut tree. This special Holliday set includes both Holiday and Birchwood scents.

Available at Nordstrom

Cire Trudon Christmas Gloria Candle

Enjoy not only a luxe seasonal fragrance, but also a beautiful blown glass vessel from what is rumored to be Marie Antoinette’s favorite candle company. Christmas Gloria from Cire Trudon is a woody-heavy scent with notes of spice throughout.

Available at Saks

Maison Francis Kurkdjian Pain D'Épices Candle

This candle will evoke all the childhood memories of building a gingerbread house filled with sweet delights. Pain d’epices has notes of orange, honey, cinnamon, and anise.

Available at Saks Fifth Avenue

Shop these candles and other Holiday fragrance picks for your home:

2021 Holiday Tipping Guide

The Holiday Season has officially kicked off. With Black Friday and Thanksgiving over, holiday decorations are going up across town. With the arrival of the Holiday Season comes the question on the mind of many - “How Much Should I Tip?”

While some traditions will be put on hold, other traditions synonymous with the Holiday Season will continue, one of which is Holiday Tipping. 

One could argue that Tipping is even more important this year than ever before - it has been a challenging year for all, and for those that are fortunate and have the ability to tip those that have helped throughout the Pandemic, this is the year to do so.

Building staff in Residential New York City buildings have been essential to all residents through the COVID-19 pandemic. Building Staff have been responsible for increased cleaning protocols, receiving and managing an exponential increase in deliveries, and checking in on vacant apartments for residents that have escaped to second homes.

We’ve adjusted our annual tipping guide to account for 2020 - some of the individuals that are key in a typical year such as your Manicurist may not have played a role in 2020 because of the Pandemic. Additionally, if you are considering giving more this year to your valued Building Staff and are concerned they will expect this amount in future years, consider stating in your note with the tip how grateful you are for all they’ve done during this challenging year to set expectations. 

Our friends at Brick Underground publish a go-to holiday tipping guide, which has been circulating since 2013. We condensed it, and put our take on what is appropriate as you budget for your holiday tipping. Remember, these are simply guidelines. There are many factors that can influence the tipping decision such as the size of the building (a larger staff equates to smaller individual tips), level of service, seniority, and time in building. Additionally, owning versus renting in a building can play a big factor as well.

Of course, if you live in a building with a part-time doorman, virtual doorman, or no staff at all, the below levels could be adjusted downward.

Renters: Tips do not have to equate to the dollar amount you are paying each month for rent. If you receive a lot of packages, have a stroller that is carried in and out of the building, etc., factor this into your tip. 

It is recommended that you tip in cash. Doorman, Concierge, Supers, etc. all of bills to pay like you and I- they are not looking for fruit cakes, cookies, or homemade gifts at the holidays!

Many buildings have organized drop off locations for your tips so you can safely give to your Building Staff rather than direct contact due to public health guidelines.

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TIPPING GUIDELINES

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Super: $150-$200
Doorman/Concierge: $100-$150
Package Room: $50-$75 per individual*
Housekeeper: 1 Week Salary
Dog Walker: 1 Week Salary
Garage Attendant: $50-$100
Personal Trainer: $100*
Personal Assistant: 1 Week Salary
Hairdresser: $75-100*

*In the post-pandemic world, it is important to remember all the people fielding the large increase in orders you are placing and the sheer volume of orders they are now receiving, just for you alone. From Uber Eats to Amazon and every shopping destination in-between, there is no denying that we all place significantly more online orders than prior to the pandemic. We recommend tipping Package Room staff more than previous years. In most buildings it will be the package room employees, however, Doormen/Concierge are likely fielding these requests after hours.

Additionally, if someone such as a Trainer has moved to a Virtual Model and you continued to use their service, we recommend continuing to tip these individuals.

When: Most building staff will prefer to receive their tips in early December so they can plan their own holiday spending accordingly. Tips account for a large part of building staff’s anticipated income at this time of year.

This guide was presented in 2018 and has been re-shared to include updated information

Why Buying a Home Just Became Easier

It is not a question that all of us realized the importance of home during the pandemic. The close relationship we formed with home has lead to many individuals assessing their needs as it relates to their current living situation - from renters looking to make roots and buy, to existing home owners trading up, the pandemic has spurred activity within the housing market. 

When it comes to buying a home, the 2 most common roadblocks that buyers may face are the ability to save for a down payment - something that has been typically challenging for student-debt ridden millennials, and qualifying for a mortgage at current lending standards.

Last week, the FHFA announced that it will be raising the loan limits for Confirming Loans in 2022. 

Confirming Loans are the only mortgages that meet the requirements to be acquired by Fannie Mae and Freddie Mac. Any loan that exceeds the confirming limit is considered a non-confirming, or Jumbo Loan.

There are quite a few differences, both pros and cons, to conforming vs. non-confirming loans, however, typically a non-confirming loan has a higher interest rate and down payment requirements because of the risk of the loan. In pricey housing markets, even purchases at the lower end of the market can force buyers into the jumbo loan territory.

The FHFA indicated in a Press Release that the Confirming Loan limit will see a significant increase to $647,200 and that approximately 100 counties will have confirming loan limits approaching $1 million.

What does the increase mean? More homes will now qualify for conforming loans which have lower down payment requirements and easier lending standards. For example, a home that you could afford with 10% down but would result in a non-confirming loan that required 20% down, may now fall into the confirming loan limit allowing for 10% down.

That dream home that you thought was out of reach, may just have become a little bit closer!

Connect with us today to discuss these changes and how they may impact your purchase consideration.

7 Smart Home Features Luxury Buyers Want

Today’s luxury buyers are more and more interested in smart homes. And it’s no surprise when you think of the comfort and security such a home can offer. But with the expanding possibilities of technology, it might be hard to choose what features are worth investing in when you want to put a home on the market. As a result, we conducted some research to determine which smart home features luxury buyers want in their houses.

1.   A smart security system

Safety is something that we would all invest in without blinking. That is why installing a security system in your home has become a must. While older systems include simple functions such as burglary and fire alarms, today’s systems have more upgraded features. Not only do they have better-performing cameras with motion sensors, but they are also easy to control from your mobile phone. You can fully customize and personalize its features with just a few clicks, from the comfort of your home or from a distance. In addition, you can install smart locks, better smoke and carbon dioxide detectors, and a doorbell with a camera. The safer the house is, the higher the chances of selling it on the luxury market.

2.   Energy-efficient lighting

Besides using LED lightbulbs in your home, you can upgrade the whole lighting system and make it more energy-efficient. You can, for example, install light sources that can be controlled from a distance. These lights can detect whether or not you are at home and turn on or off. Moreover, you can even set the lighting according to your mood. Also, you can install lights with motion sensors in areas of the home that are not highly used, such as hallways. For the exterior, you can set up self-charging torches with integrated solar panels. Place them around the pool or along the pathways to transform your outdoor space into an oasis.

Modern lighting is energy efficient, and it doesn’t require switches. You can control the color, brightness, and intensity of the light in a room from your phone. via

3.   Energy-efficient heating

Another one of the smart home features luxury buyers want is an energy-efficient heating system. Besides being useful for energy saving, you can program such a system to your liking. It can heat the entire house or just one room, and the thermostats can detect when the temperature is just right. You can even program the time when the heating should turn on so that the temperature in your home is perfect when you arrive from work. Furthermore, such a heating system is safer than a traditional one. For example, if there is a gas leak, the built-in sensors will detect it and sound the alarm.

4.   A modern kitchen

The kitchen is the only room in your home that can sell the house by itself. So, if you want to impress luxury buyers, upgrade the kitchen with some smart appliances. It will help you sell your home faster and for a higher price. For example, you can get an oven that can be operated from anywhere, making it simple to preheat it or select the ideal cooking temperature without having to be present. Or a clever cooking robot that can prepare your meal in record time by pushing a single button. That is, after all, why smart appliances are so popular. They are simple to use and make your life easier. And if you need to move the appliances from one location to another, Teddy Moving and Storage specialists can provide valuable advice on safe packing and transporting.

5.   A spa-like bathroom

If you upgrade the kitchen, you should also pay attention to the bathroom. After all, it is the second most important space in your home. It’s the place where you get ready in the morning or relax with a hot bath in the evening. Therefore, making some upgrades to the bathroom is highly recommended if you want to delight your luxury home buyers. For instance, you can install a modern shower cabin with multiple functions. Controllable water pressure, a built-in thermostat that adjusts the temperature of the water, and even an internet connection so you can listen to music while showering, for example. Also, if you have the space and resources, you can install a sauna and a bathtub, where the future owners can take a load off and relax. To take it one step further, install floor heating and adjustable lights.

6.   Smart storage space

A home that has enough storage space is not just smart but is more efficient. Also, it’s a luxury to own one. So, if you have enough room in the house you want to sell, use it to your advantage. Make some walk-in dressing rooms with built-in closets. You can also add adjustable lighting and mirrors to make them more appealing. If the bedroom is large enough, make it worthy of a king and queen. Besides a wide bed with drawers or extra storage space beneath, you can bring in some large closets. In addition, you can place a chest at the end of the bed for storing blankets. And if you need help to move other luxury furniture, you can call in the experts. Professional movers can handle high-level requests with ease. Your valuables will be carefully packed and transported safely to any location.

A walk-in dressing room is one of the best home features you can invest in.

7.   Pet-friendly gadgets

Sometimes, smart home features luxury buyers want in their homes are related to their pets. Therefore, making some upgrades for pets in your home will make your potential buyers happy. You could, for example, have food and water dispensers that could be programmed to discharge their contents at specific times. Or, make a designated play area where they can spend their energy when it’s rainy outside. You can even place some toys that will pick their brain and keep them entertained for hours. A mechanical ball thrower for dogs is a great example. Furthermore, you can install self-cleaning litter boxes that are easy to use and maintain the house’s hygiene.

We all have different perspectives regarding what is considered a luxury and what is not. When it comes to house buyers, however, they must feel like their money was well spent. As a result, investing in smart home features can help you get ahead in the luxury real estate market. So, to have an easy and quick home sale, keep up with the latest luxury house trends.

Real Estate Market Braces for Return of Foreign Buyers

Key Luxury Markets around the Country including New York City are expected to benefit from boost in demand from Oversees Buyers

For key luxury markets around the country, especially New York, Foreign Buyers have been a key part of the Buyer pool. For the past nearly 3 years, this Buyer has been virtually absent from the New York Luxury Market.

The pandemic and associated travel restrictions prevented foreigners from physically coming to the United States. While some deals did occur virtually by foreign Buyers, that has been small compared to deal volume when travel bans were not in place.

We expect that dynamic to change and the foreign Buyer to return with strength now that the United States has lifted the travel ban on approximately 33 countries for fully vaccinated visitors. With the travel ban lifted, foreign buyers can once again enter the country and physically see and buy properties. We expect this to have a positive impact on the New York luxury market as many want to invest their dollars here.

For a luxury market that has continued to set records throughout 2021, we anticipate the return of the foreign buyer to be an additional boost of demand as we end 2021 and enter 2022. 

This could add tens of billions of dollars in transactions to the market.According to the National Association of Realtors, foreign Buyers spent $267 Billion on American Real Estate in 2018 and in 2019 they spent $183 billion. 

Wealthy Foreign Buyers are interested in high-end homes and New Construction

What We Expect from the Return of Foreign Buyers to the United States

• New demand in key luxury markets across the country such as New York, Miami, and Los Angeles

• New Construction will likely be the main beneficiary of this new demand as foreign Buyers prefer new product

• Thanks to increased asset prices across both real estate and equity markets since prior to the pandemic, many foreign buyers have elevated wealth

• The economic impact of travel resuming should be a positive for multiple sectors of the market - tourism, retail, and ultimately real estate.

My Lease is Expiring: Should I Stay in my Apartment or Rent Something New?

If you are currently a Renter or have rented a property before, you. Know that dreaded feeling when your lease expiration date is quickly approaching. With the expiration of your lease approaching comes the question, and decision, of: should I stay in my existing apartment, or find a new apartment to rent?

 It is important to remember there are two sides that are influencing here – you as the Renter, and the Owner or Landlord. This can be a tough decision to make as it is influenced by multiple factors – we discuss how to think about decision so you can enter your next lease with confidence.

Factors Influencing the Owner or Landlord 

When thinking about renewing an existing lease with a tenant, an Owner must weigh various costs. The owner is looking at these factors for you to stay:

1. Broker Fee: Depending on the state of the Rental market, it is likely that the Owner will need to offer a concession to secure a new tenant. This is typically paying the Broker’s fee so the new tenant does not have to. This is one’s rent or 15 percent of the annual rent.

2. Standing Empty: What is the risk of the unit sitting vacant for 1 month? 2 months? Even longer? When the empty is unoccupied, the Owner risks losing income.

3. Current Market Conditions: The Owner must have a pulse on the current state of the rental market at the time of your renewal – is it favorable to Owners or Tenants? This impacts the dynamic of their being able to increase the rent, how quickly they may be able to find a new tenant if they do not offer to renew, etc.

4. What is the last price a comparable apartment rented for? Perhaps you entered your lease when the market was lower, and the Owner may be able to rent at a much higher price in the current market. However, Owners prefer a good, known tenant that they dealt with rather than a new unknown tenant. This is where the tenants’ discount lays.

What to Consider as a Tenant

As a tenant, is important to approach the expiration and possible renewal of your lease with an understanding of the following questions.

1. How long do you need to extend for? One year? Six months? Month to month? The shorter the lease, the more it will cost monthly.

2. Current market value for your apartment that you are renting: If you have been paying significantly less than what it could rent for today, it is not unreasonable to expect some increase in the monthly rent on your new lease.

3. Cost of moving: Perhaps one of the biggest considerations that is often overlooked. Is saving $200/MO on rent really worth the cost of moving?

The costs of moving include more than just the fee paid to the Movers. There are both financial and mental costs.

Think about Security deposits, packing, finding movers, moving fees, broker’s commission, time lost from work, possible condo application fees, unpacking. Often times, this costs will largely outweigh the annual cost of an increase in rent.

4. How long do you plan on staying? Does your timeline have moving to a new location in 2-3 years, or perhaps moving in with a partner or buying a property? If so, it may make sense to stay in your existing apartment despite an increase in Rent. Again, the costs and stress of moving may not outweigh an increase in rent.

Summit One Vanderbilt Observation Deck Opens in Midtown Manhattan

A new observation deck has opened in New York City that once again raises the benchmark. Summit is located on the 91st-93rd floors of One Vanderbilt, a new high-rise office building in Midtown Manhattan. Perched 1,200 feet in the air, Summit is the highest vantage point in Midtown.

What sets Summit apart from some of New York’s other famous observation deck is the experience one you get to the top.

Jump onto the elevator from the Grand Central Terminal and ascend to Summit. 

When elevator doors open, you step into an immersive art exhibit designed by Kenzo Digital.Mirror floors and ceilings provide a unique perspective on your surroundings. Kenzo Digital intended to design a space that would feel dreamlike and an escape from the reality on the ground.

For those looking for a bit more than just gazing out to the skyline and horizon, you can experience “Levitation.” Levitation consists of 2 glass ledges suspended 1,063 feet over Madison Avenue, ensure to offer heart-racing views of the city below. 

Visitors that want to take things even higher can try “Ascent”, glass elevators that scale the outside of the building. They are the largest glass-floor elevators in the world and take passengers up 1,000 feet in just 42 seconds. 

Before you make your way back to the ground, stop by Apres to enjoy a quick bite and drinks by Danny Meyer’s Union Square Events. You can enjoy bites and drinks from open air terraces and indoor lounge areas.

Tickets must be purchased for access and are available at one the Summit One Vanderbilt website. Prices start at $39 and New York City residents can get a $5 discount.

Images via Summit

Condo vs. Co-Op: A Guide for First-Time Homebuyers

Buying a home is one of the most exciting adventures on which you will go. However, it can also be very stressful and frustrating, as finding the right property can take a lot of time and energy. In New York, we have different property types, and understanding the difference between them is important in making your decision. The market is primarily dominated by two types: Condos and Co-Ops.

If you are still unsure what is the right choice for you, we're here to help. Below, we have prepared the pros and cons of both property types. Understanding their differences and what ownership of each entails will make it easier for you to make the right decision.

Condo vs. Co-Op: the main differences

Co-ops and condos have many similarities, so it can be very difficult to notice any differences at first sight. Of course, as with many things, the devils are in the details.

A cooperative, or a co-op for short, is run by a non-profit corporation. The residents buy proprietary leases from this corporation. In a Co-Op your ownership is not that of real property but shares in the corporation. The proprietary leases are shares in the property. By buying proprietary leases, the residents gain certain rights such as access to communal areas of the building as well as to their individual units.

The main difference between Condominiums and Co-Ops is in the structure of the ownership. In a Condo, residents actually own real property and hold the deed to their unit. Additionally, the have an interest in common areas of the building such as hallways and amenity spaces. When you're buying a condo, you are going through the same process as if you were buying a house. The best part is that condominium buildings are everywhere, which is not the case with co-ops. For example, if Manhattan is your dream location, it will be very easy to find a perfect condo – most new construction projects are Condos.

Differences Between Condos and Co-Ops

As said, the main difference between these two types of properties is ownership. However, there are other things that make them different, understanding the full implications of the differences will help you decide which property type is best for your scenario.

●      Price - Condos are usually more expensive, but they give you bigger flexibility as they are much easier to sell or rent. However, have in mind that the down payments for Co-Ops are usually higher.

●      Fees - In co-ops, all monthly expenses are rolled into one bill known as the “Monthly Maintenance”. Also, the utilities are charged as per the percentage of share a resident owns. For example, if they own 3% of the property, they'll pay 3% of the electricity or water bill.

●      Taxes - When it comes to condos, as they're owned individually, the property taxes are charged in the same way as you would pay for a single-family home. As co-ops are considered a single property, property taxes tend to be lower as they are shared between the residents. In a Condo, you will typically face two monthly charges: the real estate taxes as well as monthly Common Charges.

●      Board Approval: Both property types have boards and your purchase will be subject to board approval, however, Co-Ops are notorious for having very strict boards and they do not have to disclose why they approve or disapprove a potential resident.

What to have in mind before making your decision?

Now that you know the main differences, here are a couple of more details to consider before making a final decision between condo vs. co-op. 

Consider your budget

Every home buying process starts with budget questions. Therefore, make sure to assess how much you can spend by consulting with your Mortgage Broker and Real Estate Agent in order to set your home search up for success. Before you choose a lender, make sure to check with at least three to ensure you are receiving the most competitive rate.

By thoroughly analyzing your budget, you'll have a clear picture of how much you can spend and what kind of property you can purchase.

When setting your budget, make sure to take other factors besides your mortgage into consideration. Keep in mind that co-ops are less in demand and therefore cheaper. However, owning a condo comes with low maintenance costs. You need to weigh both options and figure out what works best for you in the long term.

Also, be mindful of the size of the property you can get for your money. Perhaps the home you used to rent was big, and now you have to downsize. Therefore, you might not have enough room for all your belongings. An easy and inexpensive solution is to rent a storage unit. However, make sure to do your research and notice warning signs before making your choice. For example, if you see any water damage in the unit, that should be an immediate red flag. As you want your belongings to be kept safely, you need to choose the most reliable storage company you can find.

Consider how much responsibility you are willing to accept

The number of responsibilities you'll get with a property might help you resolve the condo vs. co-op dilemma. When you live in a co-op, it almost feels like being a part of a club or society. Every big decision such as a renovation or accepting new tenants has to be made jointly by all residents. Afterward, the elected board will act on any decision residents make.

If you decide to live in a condo, you can choose if you want to decide about these issues on your own or let the condo board make the calls. You may wish to be excluded from these decisions and be responsible only for your own property. It's your decision how much you want to be engaged.

Living in a co-op means that you'll have to participate in every decision regarding your building.

Therefore, make sure to do your research and find out what kind of expenses and obligations you are getting with your first home. Nowadays, all information can be easily found online. You can even buy a property remotely if you wish! Your real estate agent will be able to advise on the monthly common charges or maintenance costs for a given unit.

However, if you are a first-time home buyer, we definitely recommend hiring an experienced real estate agent to help you.