The Different Property Types Of NYC
Choosing a property in New York City can be complicated. The city’s residential market includes distinct property types whose unique characteristics can affect your ultimate decision. Here are the four types of property that make up the NYC housing stock:
No. 1: Co-ops
First, let’s address the elephant in the room and the most unique property type that most perplexes people: co-ops. A co-op apartment is one in which you buy shares of a cooperation. On a day to day basis, this means little, it’s just an apartment. But at the acquisition level it means a lot as you are subject to board approval. Yes, a group of people has to approve the sale and can reject you. Allow that to sink in. The approval process is based on certain financial and social requirements. It’s a handful but it also makes up the majority of owned homes in the city.
No. 2: Condominium
The other type of apartment you can buy is a condominium. With a condominium you are buying real property and you get a deed. Condos in NYC are not subject to a formal approval process and usually have more flexibility about subletting, purchasing structure, and other important guidelines. Because of said flexibility they are anywhere from 15-30% more expensive than coops.
No. 3: Townhouse
Moving away from apartments, another type of property you can purchase is a townhouse which is more in line with the single family homes that make up the majority of property around the country. Townhomes come in many shapes and sizes. You have row houses which share external walls with the adjacent home, brownstones which are a homes clad with a certain stone (yes, its brown!), and many other types.
No. 4: Multi-family homes
Lastly, more for investors, we have multifamily properties in New York City. A multifamily dwelling as the name implies is a building that has more than one apartment within its structure. Multifamily properties are often fully leased without the owner actually residing within it. Historically they are a very strong investment vehicle as they will produce passive income and appreciate in value.
