Downtown Purchase (studio)- new development

IMO a 1 bedroom is always more 'salable' than a studio. Lots of folks prefer a co-op for the stricter regulations (that is if they plan to live in the unit full-time) but many others prefer the flexibility of a condo (one major drawback being that you and your neighbors can rent to whomever you want, which means less control over problem tenants than with the stricter co-op sublet policies). Personally I prefer to live in a co-op, though if I were buying solely for investment purposed I'd absolutely do a condo.

Agree with Squid - one bedroom units are more liquid than studios on the resale market. If you are looking for mid/long-term flexibility to hold the unit as an investment property after you outgrow it, then a condo is the way to go. You shouldn't have a problem renting out a studio, but whether you will be able to cover your monthly costs at that price point if you're financing is a different story.

Dan Gotlieb
Digs Realty Group
www.digsrealtynyc.com

Sounds like you should buy a condo. The closing costs are generally lower for a coop going in, but more expensive on the way going out. No mortgage recording tax on the way in, but flip tax on the way out. Plus most coops won't let you sublet right away, and have sublet fees etc.

I'd just Google NYC closing costs and do some research before you decide, or just research generally whether buying a coop is a good investment or not!

Have you already looked into getting a home buyer commission rebate through a company like Hauseit? Seems to make sense if you're looking to buy, having a buyer's agent doesn't cost you anything. Though just because advice is "free" doesn't mean you should take it. You should make sure you're working with someone who's experienced, has a track record, won't risk your deal because or poor relationships with other brokers, and is trustworthy. The latter is one of the most important criteria according to the NAR :-)

I disagree on the 1 beds being more "salable" than studios. I think especially for condos it all comes down to size and PPSF. There are plenty of "lofts" that don't have many legal bedrooms due to windows, but plenty of space. No reason to penalize just because it's a loft.

There are plenty of loft "studios" in the most expensive areas of town like Soho, Tribeca, Meatpacking, Highline - those also happen to be the hippest.

Regarding the above, yes sure do your research on nyc closing costs but it's pretty obvious to most people that they don't have to pay for a buyer's broker. Agree though that most of my network has no ideas about this broker commission rebate idea (buyers getting some of the commission from their buyer's agent). I think more people have heard of FSBO, selling through Hauseit etc. as that seems to becoming more mainstream, but for buyers there still needs to be more education. Most people just call one of their 15 real estate agent buddies when it's time to search. Pretty sad but that's the market.

I would be willing to bet that buying a new construction condo studio in the locations mentioned that is currently being offered at today's prices could be the biggest mistake you make in the next 5 years.

You should also factor in the differences in closing costs for buyers when you buy a sponsor unit: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/

Note that you'll have to pay the transfer tax when you sell it ... so you pay it when you buy and when you sell :-)

Unless you can negotiate your way out of it of course, get a good buyer's agent.

But seriously, play around with the calculator. I feel like people forget too often the transaction costs involved when they do these price appreciation and return scenarios.