Gea Elika's Blog, page 162

9 Questions to Ask a Condo Board Before Buying

Before you make an offer on a condo apartment, you’ll want to get some key information from the management company/board. Here are some crucial questions to ask, no matter where you’re trying to buy:

1. What percentage of the units are owner occupied, and what percentage is rented out to tenants? Generally, buildings with a higher percentage of owner-occupants are more marketable when it’s time to resell the property.

2. Ask for a copy of the bylaws; if possible, review them with your buyers broker and attorney. Be aware of any grandfather clauses that govern the property. You may find that residents who bought the property after a certain date can’t rent out their unit, while those who bought earlier can, for example.

3. Ask for a copy of the building’s financials. How much money does the association or board keep in reserve, and how is it invested?

 

By Wally Gobetz on Flickr

 

4. Are assessments keeping pace with inflation? Is the board raising assessments each year to build reserves to fund future repairs? Compare assessments to other condo developments and co-ops in the area to determine if they are reasonable.

5. What is covered by the assessment? Maintenance of the common areas, recreational facilities, Local Law 11 building repointing, trash collection, and snow removal are common activities paid by condo associations and co-op boards. Be sure to find out what is not covered, as well.

6. Were there special assessments mandated in the past five years? How much was each owner’s share? Some assessments are unavoidable, but frequent, costly assessments may be a red flag indicating a building in poor condition, or imprudent financial policies with the board itself.

7. How many apartment have sold in the building in the past 12 months, and how often do they sell?

8. Is the board involved in any litigation? Lawsuits involving homeowners or developers can rapidly deplete association reserves.

9. Has the building’s developer worked on other projects? If your development was converted to condos or co-ops from another use, ask for an engineer’s report. If the roof, windows, and bricks are in poor repair, they will affect the value of your housing investment and possibly quality of life.

This information will help you decide if the condo or co-op unit is right for you; it will also give you some insight about the condo board’s cooperation, organization, and helpfulness.

The post 9 Questions to Ask a Condo Board Before Buying appeared first on .

9 Questions to Ask a Condo Board Before Submitting an Offer

Before you make an offer on a condo apartment, you’ll want to get some key information from the management company/board. Here are some crucial questions to ask, no matter where you’re trying to buy:

1. What percentage of the units are owner occupied, and what percentage is rented out to tenants? Generally, buildings with a higher percentage of owner-occupants are more marketable when it’s time to resell the property.

2. Ask for a copy of the bylaws; if possible, review them with your buyers broker and attorney. Be aware of any grandfather clauses that govern the property. You may find that residents who bought the property after a certain date can’t rent out their unit, while those who bought earlier can, for example.

3. Ask for a copy of the building’s financials. How much money does the association or board keep in reserve, and how is it invested?

 

By Wally Gobetz on Flickr

 

4. Are assessments keeping pace with inflation? Is the board raising assessments each year to build reserves to fund future repairs? Compare assessments to other condo developments and co-ops in the area to determine if they are reasonable.

5. What is covered by the assessment? Maintenance of the common areas, recreational facilities, Local Law 11 building repointing, trash collection, and snow removal are common activities paid by condo associations and co-op boards. Be sure to find out what is not covered, as well.

6. Were there special assessments mandated in the past five years? How much was each owner’s share? Some assessments are unavoidable, but frequent, costly assessments may be a red flag indicating a building in poor condition, or imprudent financial policies with the board itself.

7. How many apartment have sold in the building in the past 12 months, and how often do they sell?

8. Is the board involved in any litigation? Lawsuits involving homeowners or developers can rapidly deplete association reserves.

9. Has the building’s developer worked on other projects? If your development was converted to condos or co-ops from another use, ask for an engineer’s report. If the roof, windows, and bricks are in poor repair, they will affect the value of your housing investment and possibly quality of life.

This information will help you decide if the condo or co-op unit is right for you; it will also give you some insight about the condo board’s cooperation, organization, and helpfulness.

The post 9 Questions to Ask a Condo Board Before Submitting an Offer appeared first on .

9 Questions for the Condo Board Before You Submit an Offer

Before you make an offer on a condo apartment, you’ll want to get some key information from the management company/board. Here are some crucial questions to ask, no matter where you’re trying to buy:

1. What percentage of the units are owner occupied, and what percentage is rented out to tenants? Generally, buildings with a higher percentage of owner-occupants are more marketable when it’s time to resell the property.

2. Ask for a copy of the bylaws; if possible, review them with your buyers broker and attorney. Be aware of any grandfather clauses that govern the property. You may find that residents who bought the property after a certain date can’t rent out their unit, while those who bought earlier can, for example.

3. Ask for a copy of the building’s financials. How much money does the association or board keep in reserve, and how is it invested?

 

By Wally Gobetz on Flickr

 

4. Are assessments keeping pace with inflation? Is the board raising assessments each year to build reserves to fund future repairs? Compare assessments to other condo developments and co-ops in the area to determine if they are reasonable.

5. What is covered by the assessment? Maintenance of the common areas, recreational facilities, Local Law 11 building repointing, trash collection, and snow removal are common activities paid by condo associations and co-op boards. Be sure to find out what is not covered, as well.

6. Were there special assessments mandated in the past five years? How much was each owner’s share? Some assessments are unavoidable, but frequent, costly assessments may be a red flag indicating a building in poor condition, or imprudent financial policies with the board itself.

7. How many apartment have sold in the building in the past 12 months, and how often do they sell?

8. Is the board involved in any litigation? Lawsuits involving homeowners or developers can rapidly deplete association reserves.

9. Has the building’s developer worked on other projects? If your development was converted to condos or co-ops from another use, ask for an engineer’s report. If the roof, windows, and bricks are in poor repair, they will affect the value of your housing investment and possibly quality of life.

This information will help you decide if the condo or co-op unit is right for you; it will also give you some insight about the condo board’s cooperation, organization, and helpfulness.

The post 9 Questions for the Condo Board Before You Submit an Offer appeared first on .

What are The Pros and Cons of Condos?

Condominiums are a flexible and affordable option for some home buyers, but there are distinct differences between condos and single-family homes. Here are some things to consider if you are thinking of buying a condo.

1. Storage space varies wildly in condominium units. Some buildings have storage cages in the basement, but many don’t. If you need a lot of storage space, a condo may not be the best choice.

2. Private space outdoors is rare in a condominium development. This is great if you dislike maintaining a lawn, but if you love to garden or lounge outdoors, you may regret your condo purchase. If outdoor space is important to you, consider purchasing near a park or a condo in a building with a roofdeck, possibly.

 

By Jenn Shott Knudsen on Flickr

 

3. Most condominium developments have luxurious amenities like on-site gyms, communal outdoor spaces (in some cases swimming pools), community lounges, and playgrounds, which are very attractive to a certain type of homebuyer. Keep in mind, though, that the more amenities you have, the higher your monthly fees will be, so choose your amenities wisely.

4. Almost all condo developments have an onsite maintenance crew that handles any repairs to your home, and maintains the common areas. They often also arrange for deliveries to your home, and even let approved workmen into your home, such as cable or phone technicians.

5. Condos usually offer enhanced security, such as a doorman, multiple secure entry locks, and in some cases, round-the-clock security personnel—which is very helpful in the event of an emergency.

6. You’ll pay maintenance fees and dues to cover the costs associated with the amenities and security, even if you don’t use them all. The fees are set by the condo board, and they often increase on a periodic basis. These fees will be on top of your monthly mortgage payment.

7. The resale price on your unit often hinges on what other units are available in your development, and at what previous like-kind apartments have sold for. Condo units are very similar to one another, so the number of available units, views, finishes, and appliances often determine your asking price.

8. Condo living is governed by the condo association and any rules and regulations they adopt, although in most cases you will have a vote. Some condo boards restrict pets or noise levels. Make sure you read all your condo rules and regulations before purchasing a unit.

9. Condo residents live in close proximity to one another; it’s a good idea to meet your neighbors before you buy.

The post What are The Pros and Cons of Condos? appeared first on Elika Real Estate.

12 Co-Op Board Interview Tips: Be Prepared to Get Approved

While co-ops are more plentiful than condos and less expensive, their approval process is far more rigorous. The purpose of the interview can vary widely–some boards view it merely as a formality after approving an application, but others use it as an opportunity to scrutinize candidates and their financials. Here are 12 tips to help ensure your interview goes well:

 

By army.arch *Adam* on Flickr

 

12 tips to help ensure your interview goes well:

 

1. Dress conservatively. Men should wear a suit and tie, and women should wear a professional dress or suit with minimal jewelry.

2. Be on time. Keeping a board waiting will not serve you well, so try to show up early. Also understand this is a time-consuming process, so be patient with the board.

3. Expect personal questions. Be prepared to field personal questions without getting defensive. Remember that the board is simply trying to determine what kind of neighbor you’ll make.

4. Familiarize yourself with your finances. Going into the interview, you should know your financial statement like the back of your hand and be prepared to answer questions about it.

5. Solidarity is important. If the board is interviewing you with your husband, wife, or partner, make sure you’re all on the same page so you don’t interrupt or contradict one another.

6. Don’t ask questions. For the most part, the board should have answered your questions prior to your signing a contract. Now is their time to ask you questions. For guidance, see the Most Often-Asked Questions section.

7. Don’t mention renovations. Unless asked, don’t talk about the work you intend to do, and, even if asked, downplay your plans.

8. Don’t over-share. Limit the personal information you divulge to what the board asks. Don’t volunteer things.

9. Don’t expect an immediate decision. The board usually will conduct a full review, which takes time.

10. Meet post-interview requests. In some cases, approval might be contingent on your holding maintenance in an escrow account.

11. Wait for an answer. Once the board has decided, the managing agent will contact you or your agent. Typically, if approved, notification is given within one week.

12. Don’t worry. Being confident and at ease during the process will help you.

What Goes Into a Credit Score?

Figuring out your budget is one thing, but you’ll also need to get your bearings when it comes to your credit situation. Credit scores range from 300 – 850, and lenders require a score of at least 620 to approve a mortgage. To qualify for the best interest rate available, you will need a credit score of no less than 720. Several factors affect your credit rating:



 

● Your payment history: Do you make your monthly payments by the due-date every month? A late payment can be almost as damaging as no payment at all.

● Your overall debt burden: High balances on multiple accounts tell lenders you may be overextended.

● The length of time you’ve had credit: A long history of prompt payments and paid off accounts improves your score.

● Your available credit: Many open accounts with low balances and lots of available credit are a red flag for lenders, signaling a risk for future credit problems.

● The types of credit accounts you have: Lenders prefer to see both secured (a car loan, for example) and unsecured (credit and/or charge cards) accounts; it’s a sign of financial responsibility.

 

by CafeCredit.com, on Flickr

 

How to Improve Your Credit Before You Buy

 

Fortunately, there are also some things you can do to build your credit. You’ll get the best mortgage terms with a high credit score and a low debt-to-income ratio. Take steps now to boost your score before you see a lender.

1. Request a credit report from the three major credit bureaus (Equifax, Experian and TransUnion), and check them carefully for errors. If you do spot a mistake, make sure it’s corrected with all three credit agencies.

2. Never make the minimum monthly payment on your credit card bills. It’s best to pay them in full each month, but if that’s not possible, pay as much as you can afford. Keep in mind that balance transfers can lower your overall credit score.

3. If you’ve had credit problems, wait at least a year before you apply for a loan. Lenders are more favorable the more time has elapsed since your last late payments.

4. It’s best not to open any loans or credit accounts in the months immediately before you apply for your mortgage. High levels of available credit can lower your credit score.

5. Once you’ve applied for a mortgage, freeze your spending until you close on your home. Don’t apply for any new credit cards or loans, and don’t make any major purchases on existing cards.

6. Target two or three favorite mortgage lenders and apply to them all at the same time. Too many credit bureau inquiries lower your credit score, but several inquiries in a short period by a single type of lender will typically count as only one inquiry.

7. Stay away from finance companies. In addition to the high interest rates, most lenders view finance company accounts as evidence of bad money management.

To learn more about how your credit score is calculated, visit MyFICO.com. You also can request a free credit report at AnnualCreditReport.com.

Manhattan Townhouse Architecture

If you’re an architecture buff, you can’t help but get caught up in Manhattan’s medley of building styles. Stroll through any NYC neighborhood and you’ll come across blocks of charming townhouses from a variety of periods in history. Here’s an overview of some of the city’s most treasured architectural styles, and where you can find each.

 

by Eden, Janine and Jim, on Flickr

 

The Federal Style 1800-1835

The most modest in scale, the Federal Style can easily be recognized. These row houses are simpler than their other 19th-century peers, usually two or three stories high with a basement, half attic, and low stoop. Details are inspired by ancient Greek and Roman architecture. You might notice a red brick façade and a brownstone base, as well as a paneled wood front door with a transom. You’ll come across the Federal Style in downtown neighborhoods like Little Italy, the Bowery in Chinatown, the East Village, and Greenwich Village.

 

by Eden, Janine and Jim, on Flickr

 

The Greek Revival Style 1830-1850

Distinguished by bold architectural details while incorporating Greek motifs as part of the design, this style townhouse has three or three and a half stories with a basement and sometimes an attic. Elements you’ll find include stone window lintels and sills, wood dentil cornices, six-over-nine windows on the ground floor, and a wood paneled front door with sidelights. The elaborate interior detailing can’t be ignored in the Greek Revival Style. Ornate ceilings with plaster moldings and medallions, pocket doors, mantels and tiled fireplace surrounds are common. Discover this style on streets such as West 10th, Waverly Place, Washington Square North in the Village, Cushman Row on West 20th, and in the MacDougal-Sullivan Gardens Historic District.

 

by Gea Elika, on Flickr

 

The Italianate Style 1840-1870

Characterized by wide, high stoops, embellished cast-iron handrails, balusters, and newel posts, two-to-four story Italianate Style homes will be the majority of “brownstones” (row houses covered in brownstone, but not other townhouses) in the Chelsea Historic District, Greenwich Village, Upper East Side, Harlem, and the Gramercy neighborhood. Italianate row houses can be other materials, such as brick, but often, original windows are two-over-two or one-over-one, and cornices tend to be heavy with decorative moldings. Narrow staircases, arched openings, some with pocket doors, wainscoting, and ceiling moldings are prevalent in the interior.

 

by Eden, Janine and Jim

 

The Second Empire Style 1860-1875

Wander around Harlem and you’ll find your share of brownstones built in the Second Empire style. Details will be similar to those of the Italianate period; homes will be three to five stories high with wide stoops and some will feature mansard roofs. Ornate newel posts, doorways with stone pilasters, and decorative facades are typical. Roam on Lenox Avenue to get a sampling of this style.

 

The Queen Anne Style 1870-1890

Call it a hodge-podge of styles (it happens to be one of my personal favorites), Queen Anne is known for its asymmetrical design and unusual details. This period borrows from the Romanesque Revival style, using terra cotta on the façade, three-sided bay windows, varying window pane sizes, L-shaped and straight stoops, and slate or tile roofs. You won’t encounter as many Queen Anne style townhouses as some of the other architectural periods, which is probably what sets these homes apart, making them unique. You’ll find a few surviving buildings on the Upper West Side, and the Upper East, particularly the far eastern section of the neighborhood. Take a walk down Henderson Place off East End Avenue and see Queen Anne in all her glory.

 

by Eden, Janine and Jim

 

The Beaux-Arts Style 1890-1920

Symmetry is one dominant element of the Beaux-Arts style. Townhouses are most likely five stories, complete with mansard roofs and dormers, limestone or brick façade, with little or no stoop. The front door on a Beaux-Arts style row house would probably be one or two steps above the sidewalk while the parlor floor is typically the second floor, boasting large windows and balconies. Other notable details include bay windows, casement windows, and metal cornices. The Upper East Side and Riverside Drive on the Upper West remain two Manhattan neighborhoods with terrific examples of this style of architecture.

 

The post Manhattan Townhouse Architecture appeared first on Elika Real Estate.

Buyer Beware Part 2 – Careful! is that a Lot line Window? Don’t Expose Yourself

Have you ever heard of a one-bedroom apartment you just bought yesterday becoming a studio with the home-office today or a two-bedroom is no longer anymore but now a one bedroom with home office and so on…? A truly nightmarish scenario as the rest of the property values continue on the uptrend your property valuation is unexpectedly diving down. Yes, it is possible more than ever, just ask owners at 235 East 22 Street, where half the building windows were blocked by the new Naftali development 234 East 23rd Street or many owners of 330 Third Avenue coop where windows with west exposure were blocked by the new Baruch College building some years ago.

 

Photo Via Flickr by Matt Karp

 

When buying an apartment be careful of exposures. Make sure that the windows of the unit you are buying in are not “lot line” windows and can’t be blocked by a new development, because otherwise your apartment will rapidly depreciate and grow down in size.

The recent stand out example is The Silk Building, 4 East 4th Street where an entire south side of the building is being blocked by the new development of 1 Great Jones Alley and a great number of the apartments lost views, light that have hurts values. You will be safe of course if you have all windows with street exposures, however with narrow streets always look across to see what can be built. The view does not have to change substantially to affect the property value. You may live on the sixth floor across from a four story building but a new development can replace the existing structure with one that grows to 10 or more stories changing your views and available light. In some cases, the neighborhood associations can block future developments but it is rather an exception than a rule if it is not a historical building or a block.

 

Photo Via Flickr by  Kevin Harper

 

In the case of a lot line window the room which loses such window and if there is no other that can be opened would turn that a bedroom no longer. Even if the new development will be 30 feet away as prescribed by law in some cases, the views and available light will be forever lost which will ultimately affect the value of the apartment substantially.

Always ask your broker to check the possibility of your windows being potentially blocked especially if you have a view on the parking lot, or a low built usually one to four stories commercial structure such as garage, gas station or a store. These types of sites invite developers to build hotels, rental and condominium buildings of the heights equal or greater than existing buildings on the block. However, if nearby buildings are rental, co-op or condo buildings with more than 20 units and rent stabilize tenants rest assure that it will be extremely difficult for the developer to overcome these existing limitations and it will require a substantial additional layout of cash to buy the tenants out and dealing with the city.

That is also why it is very important to have an experienced well-seasoned broker on your side. The right broker will only negotiate a better price but also will look out for potential future problems after all an experienced broker has a wealth of knowledge and expertise.

The post Buyer Beware Part 2 – Careful! is that a Lot line Window? Don’t Expose Yourself appeared first on Elika Real Estate.

Buyer Beware Part 2 – Careful don’t expose yourself!

Have you ever heard of a one-bedroom apartment you just bought yesterday becoming a studio with the home-office today or a two-bedroom is no longer anymore but now a one bedroom with home office and so on…? A truly nightmarish scenario as the rest of the property values continue on the uptrend your property valuation is unexpectedly diving down. Yes, it is possible more than ever, just ask owners at 235 East 22 Street, where half the building windows were blocked by the new Naftali development 234 East 23rd Street or many owners of 330 Third Avenue coop where windows with west exposure were blocked by the new Baruch College building some years ago.

 

Photo Via Flickr by Matt Karp

 

When buying an apartment be careful of exposures. Make sure that the windows of the unit you are buying in are not “lot line” windows and can’t be blocked by a new development, because otherwise your apartment will rapidly depreciate and grow down in size.

The recent stand out example is The Silk Building, 4 East 4th Street where an entire south side of the building is being blocked by the new development of 1 Great Jones Alley and a great number of the apartments lost views, light that have hurts values. You will be safe of course if you have all windows with street exposures, however with narrow streets always look across to see what can be built. The view does not have to change substantially to affect the property value. You may live on the sixth floor across from a four story building but a new development can replace the existing structure with one that grows to 10 or more stories changing your views and available light. In some cases, the neighborhood associations can block future developments but it is rather an exception than a rule if it is not a historical building or a block.

 

Photo Via Flickr by  Kevin Harper

 

In the case of a lot line window the room which loses such window and if there is no other that can be opened would turn that a bedroom no longer. Even if the new development will be 30 feet away as prescribed by law in some cases, the views and available light will be forever lost which will ultimately affect the value of the apartment substantially.

Always ask your broker to check the possibility of your windows being potentially blocked especially if you have a view on the parking lot, or a low built usually one to four stories commercial structure such as garage, gas station or a store. These types of sites invite developers to build hotels, rental and condominium buildings of the heights equal or greater than existing buildings on the block. However, if nearby buildings are rental, co-op or condo buildings with more than 20 units and rent stabilize tenants rest assure that it will be extremely difficult for the developer to overcome these existing limitations and it will require a substantial additional layout of cash to buy the tenants out and dealing with the city.

That is also why it is very important to have an experienced well-seasoned broker on your side. The right broker will only negotiate a better price but also will look out for potential future problems after all an experienced broker has a wealth of knowledge and expertise.

The post Buyer Beware Part 2 – Careful don’t expose yourself! appeared first on Elika Real Estate.

Buyer Beware Part 1 – Neighborhood Evolution that could impact your NYC Condo Investment

As we look around New York we see construction at almost every corner and in every neighborhood of the city. Places that were as recently as two years ago empty, are replaced by new developments offering their apartments for sale or for rent. The structure of the city and its neighborhoods is changing by leaps and bounds. Despite some softness in segments of the market, prices continue to remain strong. The question is where should one buy next? All neighborhoods are not created equal.

Cheap money led to rapid expansion of construction projects that made some areas less attractive from an investment and appreciation point of view. It is important to note that personal preferences in achieving a certain life style often trump everything else. If you are open to look at the entire market and interested in greater than average appreciation or high income from the property; future construction of new developments will affect the market and your purchase.

 

Photo via Flickr by Mark Simon

 

Let’s take Trump Village for example. It is a stretch of land from 60th Street to 72nd Street west of 11th or West End Avenues and bordering the Hudson River. At the time the development started it was considered by many a new frontier with Hudson River views and ultra-modern apartments. Initially these apartments, first in built in 2000 on the Bank of the Hudson River at 72nd Street were in a great demand and did very well. However, as construction by Extell Development Company progressed and now in its final stages (the last new development at 60th Street and 11th Avenue is to be completed within 6 months) the whole stretch of land has been overbuilt. This is not only affecting the buildings in Trump Village but also nearby new developments such as Element (555 West 59th Street) or 10 West End Avenue were rents have dropped as much as 20% in the past 3 years. The rentals in these condo buildings have experienced a dramatic decline in rent and appreciation of these apartments is not as rapid as in other parts of the city.

 

 

Making future income from these condo rentals even lower, one has to look at several new mega rental developments on 57th Street between 11th Avenue and West Highway and along Amsterdam Avenue between 61st Street and 70th Street which offer tremendous competition. A private owner of a condo apartment has to compete with major real estate developers and hundreds of units offered for rent with considerable subsidies.

The Hudson Yards and Midtown West are most recent examples in which similar problems may arise. The Hudson Yards, however, does have great potential but it is important to evaluate each unit carefully making sure you buy the right unit/product. Typically when purchasing an apartment off the first amendment, (Schedule A) pricing that has potential for capital appreciation may balance out excess supply issues down the line if they were to play out. In order to avoid buying in the potentially or soon to be overbuilt areas one should look at the current state of the neighborhood and the type of buildings it is made up of.

If you buy in neighborhoods such as the villages (East, West and Greenwich Village) or Lower East Side you can be assured that you’ll be risk free from over construction of new mega developments. These historically assigned buildings and streets prevent developers from building mega apartment complexes. It is also true for most of the Upper West Side and Upper East Side west of Lexington Avenue. Developments in that type of area tend to be smaller with a limited number of apartments that can be easily absorbed by the market. In your quest for a new apartment walk, around the block and see how the building you are buying in compares to other buildings on the block.

As a rule of “thumb” long time (70 to over 100 years) established neighborhoods with historical districts and assigned historical buildings prevent a large number of constructions with excessive heights and mega units.

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