4 years ago

Save 2% When Buying in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
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What is a pied-a-terre in New York City real estate? We’ll demystify this topic in the following video, I'm Nick at Hauseit. Visit our website https://www.hauseit.com to save money when buying or selling real estate here in New York City, so let's get started.

A pied-a-terre in New York City describes a property which is used as a second residence. The literal translation of pied-a-terre in French is foot on the ground. Buying a pied-a-terre in New York City is a great way to establish or maintain roots in the city if you are based elsewhere in the world. A pied-a-terre can describe any property type. This includes a condo, co-op apartment or a townhouse.

Co-op apartments are generally the least expensive option for pied-à-terres but not all co-op buildings permit pied-a-terre usage. Pied-a-terres in New York City are particularly attractive because of the stability and historical resilience of New York City real estate as an asset class. Having a handful of high-quality real estate holdings is a no brainers for high net worth individuals and New York City is at the top or near the top of the list of potential cities to consider.

Do co-op buildings permit pied-a-terre in New York City? Well, sometimes. Each co-op building has its own policies on pied-a-terre usage. The strictest co-ops not only prohibit pied-a-terre usage but they may also have restrictions on guest usage as well. In one extreme example, a large co-op in the West Village prohibits owners from allowing members of their own families to occupy an apartment unless the legal owner is present. Co-op buildings may also change their position on pied-a-terre usage over time. For example, one notorious co-op in Greenwich Village adjacent to NYU was pied-a-terre friendly for many years until the number of students and guests using these units started to increase. That's forward to today and the building strictly prohibits pied-à-terres.

Is buying a pied-a-terre in New York City a good idea? Well, it depends. There are a number of benefits and drawbacks of buying a second home in New York City. Benefits of owning a pied-a-terre include the following convenience and stability of always having a place go home in New York City particularly if you have family or friends in the area, avoid the headaches of having to figure out hotels or other accommodations every time you visit New York City, never have to speak with a hotel reception, wait for a hotel room or request early check-in or late check-out ever again, portfolio diversification benefits and capital upside opportunities of owning a piece of New York City real estate.

The downsides of buying a pied-a-terre in New York City may include the following paying buyer closing costs when purchasing your pied-a-terre, buyer closing costs can be anywhere from 2 to 6% in the city, having to pay monthly carrying costs year-round even if you rarely visit New York, rising carrying costs overtime, a liquidity of holding real estate compared to stocks bonds or cash and cash equivalents, potential cost and inconvenience of having to sell your apartment in the future should your plans change.

So there you have it and we hope you found this video helpful, I'm Nick at Hauseit. Visit our website https://www.hauseit.com to learn about ways to save money when buying or selling real estate here in New York City and if you like this video, do us a favor hit like, subscribe, leave us a comment and we hope to see you on the next one!

Save 2% When Buying in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
NYC Buyer Closing Cost Calculator: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/
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