How to Buy a Loft in Manhattan
Imagine being able to look out the window of your spacious loft to see the hustle and bustle of the Big Apple. If you've always dreamed of living in the heart of the city, a loft might suit you perfectly. You can often find a good-size live/work loft for the same price as apartments in many cities.
Other People Are Reading
Instructions
-
-
1
See How to Buy a House.
-
2
Investigate what kind of loft you can get for your budget. Lofts are generally wide open spaces, with high ceilings. Some need a fair amount of work to be livable, including, perhaps, the addition of walls or partitions, and interior finish.
-
-
3
Investigate cooperatives (which is what most apartments and lofts are in New York). You won't actually own the loft, but will be a shareholder in a corporation that owns the entire building, which entitles you to a long-term proprietary lease. A co-op carries a monthly maintenance fee in addition to the lease cost that covers the mortgage expense of the building, as well as heat, hot water, taxes and other costs. Ask about how much debt the building has, and therefore, how much each unit must pay if it's a co-op. Typical prorated debt ranges between $25,000 and $40,000.
-
4
Check out lofts that are condominiums (see How to Buy a Condominium). You will actually own the property, but pay a monthly home owners association fee. The advantage is that you buy the unit up front with a monthly fee that is almost always lower than for a comparable co-op since you're not paying a pro rata share of the building's mortgage.
-
5
Compare prices. The bigger the loft, the more you'll pay, as with a more desirable neighborhood. To illustrate, a 1,300-square-foot loft in SoHo listed in 2003 for $1.3 million; in the up-and-coming North Chelsea neighborhood, prices range from $400 to $550 per square foot, versus $600 to $750 per square foot in TriBeCa.
-
6
Explore neighborhoods, which differ in price according to access to good schools and other amenities, and traffic. Pay attention to what's happening, such as new shops coming in or restaurants closing, as they may be a sign of what's to come.
-
7
Expect to pay more--much more--in trendy new buildings, such as Richard Meier's glass towers in Greenwich Village, which sold for $1,000 to $1,800 per square foot before they were even built. Stick with existing buildings without doormen for lower prices, although they're difficult to find no matter what.
-
8
Find an attorney who specializes in New York real estate. If you're not familiar with the legal wrinkles of buying a loft, it's important to have a pro on hand who does.
-
1
Tips & Warnings
As in other real estate ventures, get preapproved for a mortgage before you shop to give you a good idea of how much you can afford.
The difference between a coop and a condo will show up in the price. As a rule, condos are more expensive. Also, many boards that oversee co-ops have much more muscle to reject prospective buyers than do condo management boards.
Contact the New York City Loft Board (nyc.gov/html/ loft/home.html) with any issues regarding the legalization and regulation of loft buildings converted to residential use.
