Are You A First Time Home Buyer In New York? Here’s What You Need to Know!
Learning how to buy a house in NYC isn’t rocket science, but it’s no walk in the park either. The Big Apple has some of the priciest properties in the entire country –which is to be expected from an Alpha City like New York –but that doesn’t mean there aren’t hidden gems throughout the Five Boroughs that you can’t take advantage of!
A first-time homebuyer in NY might balk at the price tag of some of the condos and townhouses you’ll find, but with the right real estate agent, you’ll be able to find a home that will be worth every penny that you invest.
That being said, there are certain things you need to know before buying a house in NYC, and these are three of the most important lessons you need to keep in mind.
Always Go For A Homebuyers Program
New York City properties cost, on average, around three times the national average, so finding a state or national homebuyers program is going to be in your best interest. Thankfully, the State of New York Mortgage Agency, or SONYMA, provides first time homebuyers in NYC with a variety of mortgage options to help them secure their first house in the city.
Many of the SONYMA homebuyer programs offer low-interest mortgage rates, with the SONYMA “Achieving the Dream” program being the most affordable. There are plenty of other options, of course, and you’ll have to fulfill certain income requirements and other qualifications, but these are generally the best way to get started in buying a house in NYC.
Rent Or Buy: The Choice Is Crucial
Here’s the thing about New York City: properties here cost a lot of money. New York is one of the most expensive cities on Earth, but it’s also one of the most sought-after places to live in. And it makes sense: it’s the headquarters of hundreds of Fortune 500 companies, it’s the center of various industries from comedy and dentistry to child development and photography.
If you’re a first time homebuyer in NY, you need to ask yourself: am I going to be staying in NYC for a few months or years, or am I making this my permanent home? The answer to this is going to be crucial to both your homebuying journey and your homebuying budget.
In general, if you’re staying in NYC for the short-term (i.e. a period of time ranging from a few months to a couple of years), then renting would be better. It allows you to live in the city while setting aside savings for you to buy property somewhere else in the future. If you’re looking to stay in NYC permanently, or if you want to own property in the city to turn into a revenue-generating stream, then buying will be your best option.
That being said, the value of buying a house in NYC is very different from, say, when you buy a house in Syracuse, NY: sure, Syracuse is a nice town, but the resale value of an actual house in NYC is going to be much, much larger in the future. Just something to keep in mind!
Decide On What Type Of House You Want
Far from being just a concrete jungle with endless rows of brick buildings, NYC actually has a rich diversity of housing types that can suit pretty much most needs.
Condos and Co-ops are practically the same thing, with one key difference: co-ops are, as the name suggests, a cooperative between different unit owners. This is usually the best option for people looking to invest in a long-term home, as you’ll typically pay less in the long run. Co-ops are usually in older buildings and are more prevalent in the city, but the downside with co-ops is their strict application process, so be sure to put your best foot forward!
Lofts, on the other hand, refer to condos that are usually located in ‘trendier’ neighborhoods, usually in repurposed manufacturing buildings or in gentrified former industrial neighborhoods. We suggest working closely with an experienced real estate agent when looking for a loft because there are plenty of people out there who might claim their neighborhood is ‘trendy’ but is actually a dud.
And while lofts, condos, and co-ops can be pricey, let’s talk about the really pricey options: townhouses and fully-detached houses.
In general, townhouses are multi-level buildings –usually three to four-story buildings –that are adjoined with other townhouses in a block. It can either be used a single-family home, or be split into different apartments. They’re some of the most sought-after and expensive types of houses in NYC, with townhouses ranging in price from a cool million, to all the way up to $100,000,000. Yes, all those zeroes belong there!
Meanwhile, finding a fully detached house in NYC can be quite difficult as they can be quite rare, but a skilled real estate agent should be able to help you find one. Fully detached houses are more common in the outer boroughs and are generally so much more spacious than any condo or loft in Manhattan.
Consult With Us Today!
One of the best ways to learn how to buy a house, whether it’s in NYC or anywhere else, is by consulting with real estate experts. We at Procopio Team at Hunt Real Estate are proud of our extensive roster of highly skilled real estate agents who will be more than happy to help you find the right type of property for you. Get in touch with for more information!