Understanding NYC HOA Fees in Real Estate
What Do Your NYC HOA Fees Entail?
Living in New York City is a dream come true for many residents. Deciding where to live and whether to buy or rent can be difficult if you are unfamiliar with the differences. Renting an apartment is a popular choice for newcomers and those just venturing out on their own, because it gives you a chance to figure out what you really want. For others, buying is at the top of their list. If you’re thinking about buying, make sure you understand NYC HOA fees and exactly what they entail.
What is a Homeowner’s Association?
Homeowner’s associations exist in many states across the country and act as mini-governments. They are created by real estate companies to manage a community of homes or condominium units. The homeowner’s association has a board of directors that hold every member to the same standards that are outlined in the organization’s by-laws. Those owning homes or condos where an association is established are required to pay a monthly HOA fee.
What are HOA fees?
HOA or Homeowners Association Fees are sometimes referred to as maintenance fees in New York City. These fees are a monthly payment in addition to your mortgage payment. The amount of the payment is determined by the HOA’s board of directors, and cover salaries for building employees, maintenance, property upkeep, and common area costs such as a pool or lobby.
5 Things you need to know about NYC HOA fees
Before you agree to pay HOA fees, understand what you are agreeing to. Some buyers find it beneficial to hire a lawyer and/or broker that specialize in these types of transactions.
- The cost varies.
No two buildings will charge the same amount for NYC HOA fees. Depending on the age, condition, and who owns the building, costs can vary from a few hundred per month to a few thousand dollars. Ask up front what the monthly HOA fees are so you can decide if the property meets your budget.
- The cost increases over time.
Just like rent in the Big Apple, HOA fees increase over time. In recent years, various boroughs have experienced as much as a nine percent increase in HOA fees. Before you buy, make sure you are okay paying more each month in the years to come.
- They are permanent.
Unlike your monthly mortgage payment, HOA fees won’t disappear. They are an expense you have as long as you are a home or condo owner in a building with a governing HOA.
- They are not optional.
Once you sign an agreement to purchase a property, you are locked into paying HOA fees. Failure to do so can result in the association foreclosing on your home or condo.
- They are a benefit.
While there are many things to be aware of before buying a home with an established HOA, there are also many benefits. HOA’s take care of the tedious decisions and responsibilities homeowners have to make such as hiring a contractor, landscaper, and snow removal from sidewalks.
There are many apartments available to buy in NYC, avoid any surprises by researching the HOA, fee requirements, and neighborhood before you sign an agreement. Hillel Realty is here to make the process hassle free and to help you find the perfect property.