<p>I am thinking to buy a apartment so that my D don’t need to looking around every year for a place to live. Have any one did this? Can you share your experience?</p>
<p>What part of NY? What is your budget for this purchase?</p>
<p>Is this thread meant to bring the 1% out of the woodwork? 
</p>
<p>Rent/Purchase is pretty low in NYC. It makes more fiscal sense to have her rent and invest that money you would have put down towards investments, unless you’ve looking at an 8 figure net worth. If you’re worth 8 figures, then it might make sense for diversification and convenience. </p>
<p>I haven’t bought an apartment for my kid, but have bought and sold few apartments in NYC. Many coops will not allow such arrangement - buyer (owner) not living in the apartment. You may be able to get away with it if you were to buy 2+ bedroom “family home”, otherwise they wouldn’t approve parents and an adult child to live in a one bedroom. Coop board will also look for 1-2 years of payments (mortgage+maintenance) in liquidity. Your best option would be a condo and they are usually 10-25% higher in price.</p>
<p>NYC prices are very high right now. Between closing costs and required down payment, I am not sure if your kid wouldn’t be better continue to rent. D1 is thinking about buying any apartment on her own right now, but I’ve told her to wait until she could afford a 2 bedroom because she could quickly out grow a one bedroom.</p>
<p>Thanks! Oldfort !
Can you share the procedure of purchase a apartment in NYC? Actually I find a one bed room condo in queen, I am thinking to get it. If D move out of NYC or like you said it become too small. She can get her own and I can sell it or rent it out.
Is selling a apartment really expensive?
Do we get property disclosure before buyer put out an offer?</p>
<p>Banks are still very careful about lending in NYC, so be prepared about providing more information. If this is not going to be your primary residence, it will also be more difficult to get a mortgage. It is not any more expensive to buy in NY than other places (6% real estate agent fee, few thousand for lawyer). Condo closing fees tend to be more expensive. I would suggest for you to do ROI analysis. It can be easily done with a spreadsheet.</p>
<p>The closing costs, etc are not more expensive in NYC…but the costs if real estate ARE. How much do you plan to spend?</p>
<p>In addition to the mortgage issues Oldfort mentioned if this is not your primary residence…there will be additional costs for property insurance if this is not your primary residence.</p>
<p>Is your daughter going to be a college student? If so, what is wrong with living in her college dorms?</p>
<p>If she is living and working in NYC, I would suggest you help her find a rental within her means. </p>
<p>“Is this thread meant to bring the 1% out of the woodwork?”</p>
<p>Maybe more like the .01%, @sevmom.</p>
<p>What if she doesn’t like living in Queens? And there she is, stuck living somewhere she doesn’t want to. Maybe she finds a friend and a much better deal in a two bedroom, and wants a larger place. This is all so she doesn’t have to look around every year? I’m sure she can easily do what my son is doing, just renew the contract. As long as she’s not trashing the place and is willing to accept any rent increases, most apartment or condo units would be thrilled to renew her lease (as long as she isn’t subletting from someone who is planning to return). I’ll bet she can even get longer than a one year lease.</p>
<p>Honestly, that is not a good reason to buy an apartment or condo. You should only do it if it financially makes sense for you, and she absolutely loves the area. I doubt it financially makes sense for many people. I briefly looked at this for my son, and it was far more expensive to do this. He found a perfect place, much larger, with roommates that he liked. He doesn’t have to look further, will just renew.</p>
<p>I agree with busdriver, I also had flirted with the idea of buying a town home for my artist daughter last year. I wasn’t sure she would qualify for an apartment, but she did and so problem solved, I didn’t end up buying one. But also because she didn’t want to be tied down and said if she were to buy anything she needed to look at the school district. She was absolutely correct about that.</p>
<p>Thanks everyone for all the suggestion. I will consider them.
When we bought houses in other state, we find the house we liked and then we got property disclosure before we put out offer.</p>
<p>Is NYC have the same procedure. I was told by the agent that there is not this kind of practice in NYC.</p>
<p>In NYC, most people don’t even do home inspection. What you would get is the building financial. In it, you would get how financially sound the building is, if there would be any capital improvements (new boiler, roof…), mortgage on the building if it is a coop.</p>
<p>Not being familiar with the NYC market…but if it’s a coop or condo, would you also have to add in homeowners association monthly fees to your costs? </p>
<p>Why would your daughter need to look for an apartment EVERY year? Many folks just renew their lease year after year. Would you consider helping your daughter with these costs rather than purchasing? For example…you could do the first/last/deposit money which can be thousands of dollars. And maybe help with the rent…although personally I feel that once out of college, kids need to learn to live within THEIR means!</p>
<p>Some NYC landlords raise the rent so much each year that renters find themselves always searching for an apartment they can afford. There are lots of reasons why people are forced out of apartments – new owners are doing renovations, merging apartments, subletters return, roommates move out. Although, some people move frequently because they want to, to be in a different location or to find a better apartment (there are some horrendous apartments in NYC) or because they can now afford something nicer in a safer, more convenient location. </p>
<p>There’s something called maintenance, which usually includes monthly fees, insurance, taxes, etc. The maintenance on many NYC apartments is higher than what most mortals pay for the mortgage in other parts of the country. </p>
<p>I’m a regular reader of the NYTimes real estate section, and I have a healthy respect for anyone who dips a toe into the NYC real estate market. It is unlike any market I’ve ever lived in. Especially today, when most places get numerous bids, for over asking price, for cash, no contingencies. Also be aware that co-op boards have final say on whether the deal goes through. And they don’t rubberstamp things – they turn people down.</p>
<p>OP: If you have a lot of money, and are looking for an investment, then buying an apartment in NYC could be a good thing to do. (And I mean A LOT of money.) I would do plenty of research before making this decision. I’m sure there are at least a dozen blogs/online forums about real estate in NYC, and I’d become a regular reader to familiarize myself with this market. You could probably get a pretty good deal in Queens, but I think that investment would be riskier than other locations. There are a few hot spots for 20somethings in Queens (Astoria and Long Island City), but if the economy goes sour, not sure whether they would still be desirable. </p>
<p>Even if you decide it makes financial sense, think it over. To me it makes no sense to add potential stress to parent/child relationship. </p>
<p>What if she decides another location would be more convenient? What if her boyfriend wants to move in? What if (gasp) she does not maintain it to your standards? Like I said, think it over… long and hard. </p>
<p>While this story may appear a bit extreme, it does help to explain why the ‘average’ buyer is squeezed out of many transactions.
<a href=“Stash Pad”>http://nymag.com/news/features/foreigners-hiding-money-new-york-real-estate-2014-6/</a></p>
<p>I read that there is a limit to how much cash Chinese people can take out of China, so how could a lot of them paying cash for houses. I know it exits in my neighborhood, just wondering how? Jewelries? Gold?</p>
<p>Another thing to keep in mind is that depending on the Co-op/Condo board/association concerned, they may turn down your application even if you have the money to pay due to possible fears of having a traditionally aged undergrad or even grad student living in their midst. </p>
<p>Even though it’s legally sketchy, I know of some Co-op/Condo boards/association in my own neighborhood and others where an absentee parent trying to buy a unit for an undergrad child and/or his/her roommates will be denied precisely because they don’t want undergrads without parental or adult supervision living in their building. </p>
<p>Reasons are fears of undergrad living alone or with other undergrad roommates causing noise or other issues commonly associated with traditionally aged undergraduates. Especially if the buildings/neighborhoods are mostly populated by retirees and families with young children. </p>
<p>Many of those coop boards deny the request because the OWNER isn’t going to be living in the unit. Many do not allow rentals or folks other than the owners to be the residents. And many do background checks of ALL folks who are listed on the purchase request. So it’s not like you can omit your daughter from the list.</p>
<p>If buying in NYC, you have to buy a condo, not a coop because you would most likely not be approved for not living there. If you look into this, be aware that many condos are on reduced real estate taxes for 10-20 years and then they go to full value. </p>
<p>It’s certainly possible to buy a place in a “transitional” neighborhood for less, but effort into it and see a solid return. Effort could mean a big renovation. </p>