Owning a house in the heart of ‘the Big Apple’, Manhattan is a dream come true for anyone. It not only gives one a feeling of freedom but also a sense of security and pride to live in the world’s major commercial, cultural, and financial centers. Buying a house is usually a one-time biggest purchase in an individual’s life and thus, can’t be done without detailed knowledge of different costs and financial planning. The first and foremost step to be undertaken when buying a house is to understand and evaluate the hidden costs associated with owning a house. Once you have bought a house do consider hiring the long distance movers in Manhattan for a smooth move. This article will walk you through the hidden costs you need to be aware of before buying a house in Manhattan.
Down payment:
The amount of down payment in New York entirely depends on two types of the house you are buying and the type of loan you have applied for financing the purchase or property. For instance, if you are considering buying a single or multi-family house then money to be paid as a down payment is charged based on the financial profile and type of loan an individual is approved for. And when it comes to the condos in Manhattan, you are usually asked for 10% to 20% as a down payment.
Registration Fee and stamp duty:
Stamp duty is a mandated fee that a buyer of a house has to pay to the state government so that the property can be registered under his name. It is the state where you are buying the property on which the percentage of fee charges as stamp duty is dependent. When talking about the registration fee, it is usually charged 1-2% of the agreement value by the court for transferring the ownership from the seller to the buyer.
Mortgage recording tax:
In case you are getting a loan for purchasing a home or apartment in NY then you will be charged the mortgage recording tax which is based on the size of the loan. The rate for mortgage recording tax is 1.8% for the loans amounting to under $500,000 and 1.925% for the loans amounting to more than $5000,000.
Attorney fees:
In New York, the individual must invest in a real estate lawyer whenever purchasing a property. Now that buying process in the state is much more complex compared to the other markets, working with the attorneys helps the non-legal minds go through the property purchasing process. Unlike the traditional lawyers, the legal fee of whose is charged per hour, and the attorney fees of a real estate lawyer is charged for each transaction. The attorney fees can range from $1,500 and $5,000 in New York’s market.
External electrification costs:
External electrification charges are to be incurred by the buyers of the house before moving. When it comes to EEC, these costs are the price charged by the developer for laying down the wires or setting up the infrastructure to equip the house with an electricity connection.
Maintenance charges:
Nowadays, maintenance charges are usually demanded by the builders in advance, and that too for 5 to 10 years. These charges vary according to several factors like the neighborhood, property value, and type of house the individual is thinking of purchasing. In addition to this, the facilities and amenities offered by the builder also affect the maintenance charges.
Charges for external development:
In some areas, charges for external development are mandated by the government authorities. These charges are charged to develop and maintain the locality and are computed based on the per square foot area covered by the property an individual is considering buying.
Wrapping up it all!
Apart from the cost mentioned by the builder, several other costs are associated with buying a house. It is always recommended to know the exact details of all costs so that you can figure out the total purchase price of the house and arrange funds accordingly. It is the above-mentioned article that will guide you through different hidden costs incurred when buying a house and thus, assist you in planning for all these charges.
