<p>I would like advice from those who know a thing or two about buying a real estate in Manhattan co op, etc.</p>
<p>We are thinking about buying a small apartment: my husband works in NYC, and I have some business dealings there also at times. So having an apartment to stay in when we work late would be really nice (currently, a long commute). Furthermore, our son may end up working there when he graduates from college. So, he may stay in the apartment for a while.</p>
<p>The main question is the trade off between the higher sales price and the higher maintenance fee. I already did some basic research to know that the higher the maintenance fee, the worse off it is as an investment protection. However, what if we are comparing two properties for which the monthly payment total is the same (mortgage payment plus maintenance fee). One property has higher sales price (higher mortgage payment) and lower maintenance fee and the other property is the opposite.</p>
<p>In this case, for long term appreciation of the property, is it better to buy the apartment with lower maintenance fee?</p>
<p>If you’re considering the lower priced property with higher maintenance fee, check to see if the higher fee is due to extra amenities not available at the other choice…or whether it’s because the co-op is heavily leveraged with debt. </p>
<p>if the higher maintenance reflects better services (like on site gym, etc), does it protect the investment value better than, say, lower maintenance without a lot of amenities?</p>
<p>One consideration is the building’s attitude towards debt. Higher maintenance can reflect a need and affinity for taking on debt for every item of maintenance that has to be done. If the building has more work to do and intends to borrow the money, maintenance will rise. If it doesn’t borrow, you’ll have an assessment, but it won’t be added to the building debt and keep the maintenance rising above the regular costs of operations. </p>
<p>You should also reflect on the fact that, assuming you are not already a NY resident, owning a coop (or renting) will expose you to statutory residency, and an increase in taxes. NY is quite good at auditing, and they specifically ask if you maintain a residence (rental or coop). If you must answer yes to that question, its likely you’ll get an audit which will seek to establish whether you spent more than 183 days in the city. If you did, you’ll be a statutory resident and pay taxes as such(both state and city). Practically, what this means is that if a nonresident owns or rents an apartment, and goes to work in NY every day, it makes you a NY resident for tax purposes, even if you don’t ever stay in the apartment. </p>
<p>For most people who don’t travel that much during their work, that rule will pick them up. If you travel a lot, you’ll possibly not spend that much time in NYC, but you’ll have to “prove” you weren’t there. That will entail an audit of your cash machine withdrawals, phone records, ez pass records, credit card receipts, and whatever else they can think of. If you were in ny for any portion of any day, that counts towards the 183. It all depends on your own situation and your income levels, but the difference is about 4% or so of your income, between resident and non resident.</p>