If you’re planning to buy a luxury condo in New York, your expectations should naturally be higher. After all, you will be paying a great amount of money for the kind of living that only luxury condos can provide. You will also need to be a bit more discerning because you could be buying a luxury condo that may give you headaches in the future. To avoid investing in the wrong New York property, here are 8 signs that you need to consider.
1. Outrageously excessive amenities
With what you’re paying for a luxury condo in New York, it’s only right to expect well-appointed facilities like clean, well-equipped gyms and clean swimming pools when available. But pet spas, theatres, concierge services, wine storage and other such amenities are already superfluous. Unless you’re a member of the top 1% with more money than you know what to do with, you would not want to be paying for these things that have no lasting value and are arguably unnecessary.
2. Building department woes
So you’re planning to purchase in a luxury new development, but somebody told you that the developer of the building is having trouble with New York’s buildings department. There is usually a good reason for such problems. In such scenarios, the project will be delayed at the very least.
3. Great building, bad location
Someone is reselling a luxury condo in a building that promises to be the best thing that ever happened to real estate, and you’re thinking about buying. But take a closer look at the location first. Remember, it’s the neighborhood that makes the luxury condo—any home, really—and not the other way around. If the neighborhood and amenities are nowhere near your standards, whatever they may be, then take it as a sign you’re about to buy the wrong condo unless you are prepared to be a pioneer in a neighborhood that is up and coming.
4. Common Charge fee extremes
Let’s say you’re buying a luxury condo in a building with a board and management company already in place. Look at the expenses and fees, and be wary if they’re either too high or too low. Unusually low fees could mean the common charges are insufficient enough to pay for the amenities and the building could be running in the red. Astronomical common charge fees, on the other hand, could indicate that there could be financial deficits, and the higher common charges are in place trying to cover for them. Ideally, a buildings financials should be running at a profit with a sufficient reserve fund for future repairs and updates if needed.
5. Construction defects
Sure, developers usually construct luxury condos using the best materials they promise, and with impeccable workmanship at that. But when the sliding glass door often gets stuck, or when the rain penetrates through the windows, you might want to rethink your plan to buy.
6. Other restrictions unacceptable to you
Many people who buy luxury condos are only doing so as an investment. Whether you’re planning to solely invest or live in the condo, you better get a hold of a copy of the condo house rules and decide whether you can live with them. If not, then you are definitely buying the wrong condo.
7. Sales are slow
Any good luxury condo project should be able to sell itself, especially when it’s located in New York. But when developers are starting to offer sky-high commissions and huge incentives for realtors, it’s usually a sign of slow sales. Your alarm bells should be ringing if buyers are steering clear of supposedly awesome luxury condo projects.
8. The price is too good to be true.
When you’re being sold a luxury condo in New York at a price that’s far below its market value, your Spider-sense should be tingling. When it seems to be too good to be true, it usually is. There is something wrong with that condo, and you wouldn’t want to find out about it after you’ve signed the papers, would you?
Luxury condos in New York are significant investments, so keep your eyes peeled for any of the signs mentioned above for your own good.