MONTHLY COSTS CONDO OWNERS NEED TO CONSIDER

When asked if it's worth it to OWN vs RENT I always break it down by the 3 monthly factors every buyer should consider. Ultimately budgeting you next move is a financial plan everyone should outline before making a decision.

1) Common Charges in a new construction condo should remain the same for the next 5-10 years because the building is brand new. Typically you don't need major repairs such as roofing or mechanicals, so the monthly charges homeowners pool together go towards a reserve fund. 

2) Real Estate Taxes - these are calculated by a tax assessor who looks at comparables in the neighborhood and puts a value on the price of the building and it's apartments. Based on your market value, your real estate taxes are assigned. Older buildings usually pay less, newer buildings pay more. (Citylights which we saw is a HUGE exception because it's a land lease building and the State of NY is making them pay higher taxes, NOT the city. ) 

A tax assessor will be better to advise here but these buildings should not double in value over night, you're looking at more of a steady appreciation year over year.

 More on taxes here: https://www1.nyc.gov/assets/finance/downloads/pdf/brochures/class_2_guide.pdf

As a primary resident you should apply every March for the STAR program as you'll have your taxes reassessed and decreased: https://www1.nyc.gov/assets/finance/downloads/pdf/brochures/class_2_guide.pdf

3) Your Cost to Finance - This is based on how much money you borrow. More money down, means you'll be borrowing less from the bank and pay less interest on a monthly basis for 30 years.  

Points, 1,2, and 3 make up your total monthly costs to own and support a new construction condo. In addition to out of pocket funds for your downpayment, attorney fees, etc you should always discuss these factors with me so we.

Reach out to learn more, talessandro@elergan.com