What Are the Disadvantages of Owning a Condo in NYC? - Natalia A. Sishodia

From Sishodia PLLC – "What Are the Disadvantages of Owning a Condo in NYC?" delves into the complexities and challenges that prospective buyers may encounter in the New York City condominium market. While condos offer certain flexibilities over co-ops, such as more lenient subletting policies and fewer ownership restrictions, they come with their own set of drawbacks that warrant careful consideration.

One significant issue is the limited availability of condos in NYC. With approximately 75% of the city's apartments being co-ops, the higher demand for condos can drive up prices, making them less accessible to many buyers. Additionally, condos are often associated with modern, high-end buildings featuring extensive amenities, which, while appealing, contribute to higher purchase prices and ongoing costs.

Financial considerations extend beyond the purchase price. New construction condos often entail higher closing costs, including state and local transfer taxes and potential mansion taxes on properties exceeding $1 million. Furthermore, monthly Homeowners Association (HOA) fees can be substantial, covering maintenance, amenities, and building reserves. These fees are subject to increase and can significantly impact the overall affordability of condo ownership. For instance, in Manhattan, maintenance fees for recently sold co-ops rose by 27% over four years, and condo fees increased by 41% in the same period.

Governance by HOA boards introduces another layer of complexity. While generally less restrictive than co-op boards, condo HOAs still enforce rules and regulations that can affect renovations, leasing, and daily living. Disputes with HOA boards or disagreements over management decisions can lead to frustration and potential legal challenges. Therefore, it's crucial for potential buyers to thoroughly review HOA rules, fee structures, and the building's financial health before committing to a purchase.

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