What Are the Risks of Buying a Penthouse Apartment in NYC?

Nick at Hauseit (https://www.hauseit.com) goes over the various risks of buying a penthouse apartment in NYC. Save 2% When Buying in NYC with Hauseit: https://www.hauseit.com/buyer-closing-credit/

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Save money when buying, selling and renting real estate in New York and Florida with Hauseit (https://www.hauseit.com). Available in NYC, Long Island, the Hudson Valley and South Florida. Visit https://hauseit.com, send us an email to team@hauseit.com or give us a call: (888) 494-8258 to learn more. Established 2014.

The first risk of buying a penthouse in NYC is that of possibly overpaying. Penthouse apartments typically command a substantial premium for many reasons including the fact that you have superior light views and exposure, private outdoor space and so forth. The premium associated with these benefits sometimes can be inflated, especially when you consider that your light, views & exposure may be obstructed by future construction. Now, this is a risk for all apartments in the city regardless of whether they're a penthouse but the reason why we emphasize it in this particular video as it relates to penthouses is because of the fact that you're usually paying a pretty considerable premium to have the privilege of living in a penthouse.

Please make sure that you are actually getting a good deal. Having a good buyer's agent at your side can be very helpful in this regard and of course here at Hauseit, we can help you save money on your purchase while assisting you in the capacity of a buyer's agent through our Hauseit Buyer Closing Credit Service: https://www.hauseit.com/buyer-closing-credit/

The savings we offer can be substantial. On a typical $5 million penthouse purchase here in New York City, our clients receive a closing credit of in some cases up to $100,000 or in many cases more than $100k.

The closing gift will be even higher of course as the budget goes further north. So, please do not hesitate to reach out if we can be of assistance. Visit https://www.hauseit.com to learn more.

Another risk of buying a penthouse is the risk of leaks. Certainly being on the top floor has its share of benefits but of course, that also means that you are the first point of entry for water, moisture and other sorts of hazards that come in from the roof. Now, of course in most cases a typical penthouse won't have any egregious increase in the risk. Of course you'll have to potentially be subjected to a roof repair from time to time. People walking on the roof doing mechanical repairs and so forth trying to access the elevator room, people repairing their HVAC. So, that's not necessarily a problem and you know the maintenance is usually routine.

The problem is when there is a leak in the roof and it cannot actually be detected in terms of where it's coming from. In these types of scenarios, the roof might have to be completely redone. But the roof itself might not be the problem. It could actually be the facade and what they call the parapet which is basically that topmost layer of brick right where it abuts the actual roof membrane.

Another risk with buying a penthouse apartment is the fact that you may be paying very high common charges and property taxes in the case of a condo. Now, how much you actually pay depends on in the case of a condo the percentage of common interest assigned to your apartment. In the case of a co-op, it would depend on the number of shares assigned to your unit, but in either case, the methodology for assigning this ownership interest to your particular apartment is quite subjective and depends on the building. You could have a really egregiously high percentage of the building's common elements and that will result in you having a very high share of the monthly operating expenses assigned to the building, and that
manifests itself in having egregiously high common charges.

Another risk with buying a penthouse apartment is that you will have huge assessments.

Another risk of buying a penthouse apartment is the fact that it might be hard to sell penthouse apartments are expensive and by definition they have less liquidity. There's a much more laborious process associated with selling them.

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https://www.hauseit.com

Save money when buying, selling and renting real estate in New York and Florida with Hauseit (https://hauseit.com). Available in NYC, Long Island, the Hudson Valley and South Florida. Est 2014.

Hauseit Group LLC, Licensed Real Estate Corporation
Tel: (888) 494-8258 | https://www.hauseit.com
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