Could use advice for retiree to NYC

[Vimes]

Hi:

I have two questions:

1. In buying a small condo, co-op, or other habitation in Manhattan, how can I take advantage of these facts: a) I am 63, so a senior; b) I can pay cash up to mid-six figures; c) I will not be working.

2. Where should I go to get the best real estate advice for someone in my position? My understanding is that there are special deals or accommodations for people who are older and/or retired, but online I only find second-hand allusions to them, or legalistic documents that don't make it easy to understanding how practically to go about actually buying a home.

Beyond answering those questions, I can use any help and advice you can spare.

Here are my particulars. I'm retiring soon, in my mid-sixties, and out of state. The latter fact means that I won't be able to see properties until that moment when I am very serious about buying, and it becomes worth my time and money to fly to NY to see the property and close a deal. I'm single and probably exactly middle class. I've lived modestly all my life, and can live contentedly in 800 square feet. I don't care much about the expense: I've had to live most of my professional life outside the cities I love, and I'm pretty determined to spend my retirement years near good theater, dining, museums, symphonies, and the other amenities that city life has to offer.

I already understand that Manhattan is not economically hospitable for middle-class retirees but, again, I'm determined to at least try.

Thank you.

[lower_nyc]

Hi:

I have two questions:

1. In buying a small condo, co-op, or other habitation in Manhattan, how can I take advantage of these facts: a) I am 63, so a senior; b) I can pay cash up to mid-six figures; c) I will not be working.

2. Where should I go to get the best real estate advice for someone in my position? My understanding is that there are special deals or accommodations for people who are older and/or retired, but online I only find second-hand allusions to them, or legalistic documents that don't make it easy to understanding how practically to go about actually buying a home.

Beyond answering those questions, I can use any help and advice you can spare.

Here are my particulars. I'm retiring soon, in my mid-sixties, and out of state. The latter fact means that I won't be able to see properties until that moment when I am very serious about buying, and it becomes worth my time and money to fly to NY to see the property and close a deal. I'm single and probably exactly middle class. I've lived modestly all my life, and can live contentedly in 800 square feet. I don't care much about the expense: I've had to live most of my professional life outside the cities I love, and I'm pretty determined to spend my retirement years near good theater, dining, museums, symphonies, and the other amenities that city life has to offer.

I already understand that Manhattan is not economically hospitable for middle-class retirees but, again, I'm determined to at least try.

Thank you.

Great questions! Hosing expenses aside, NYC can actually be quite affordable for a retiree. Lunch specials and happy hours abound. There are also tons of free cultural events all throughout the city year round.

Are you familiar with condo vs. co-op? The reason I ask is that many co-ops will have income requirements. The typical co-op requires a 'debt-to-income' ratio of 25-30%. Many co-ops often stipulate that the income must be 'earned' as opposed to passive (pension, etc.), which more or less means that the building does not permit retirees. On the flip side, HDFC co-ops have income caps and therefore work quite well for a retiree who is asset rich and income poor.

Co-ops are usually less expensive than condos which is why it's worth exploring your options for co-op apartments. There is also a huge degree of variation on co-op types depending on the neighborhoods you are considering.

This is a helpful guide on co-op financial requirements in NYC: https://www.hauseit.com/nyc-co-op-fi...-requirements/

What neighborhoods are you considering?

[Benny]

Hi Vimes, condos are likely out of the question. As of today you'll need $600,000 to $800,000 on average for a good sized 1 bed condo in Manhattan. However, coops and especially HDFC co op apartments would be ideal for you.

The latter will be especially good value since you can buy all cash, and have no income so you will by default meet the income requirements for HDFC coop apartments. HDFC apartments generally trade at a substantial discount to coops and condos of comparable size, primarily due to the higher flip taxes and strict income requirements.

Plus, HDFC coops are nice in that they get special tax breaks from NYC and as a result have lower maintenance charges overall.

In terms of being from out of state, I'd highly recommend you start working with a seasoned buyer's agent on the ground in NYC. You'll need someone to search for you who knows the neighborhoods and who can possibly go preview apartments on your behalf. This way you can fly in once you've got a few solid targets you're ready to make an offer on.

How are you going about your search so far?

P.S. I've included a link to a good article on HDFC coop income limits in NYC

[lower_nyc]

Vimes - when are you thinking of making the move?