Navigating New York City real estate often means uncovering costs that aren’t visible at first glance. Whether you're buying a chic condo on the Upper East Side or selling a co-op in Midtown, even experienced clients are surprised by the city’s hidden expenses. From maintenance fees to taxes and transfer costs, understanding the full financial picture is essential before you make your next move.
Co-ops vs. Condos: The Monthly Fee Divide
One of the biggest financial differences between co-ops and condos lies in how building fees and taxes are structured:
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Co-ops: Monthly maintenance fees include property taxes, building operations, staff salaries, and shared utilities. While convenient, they can be significant—often exceeding $2,000 per month in luxury buildings.
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Condos: Owners pay separate common charges (for building operations) and property taxes directly to the city. Common charges may appear lower, but total monthly costs can equal or surpass co-op maintenance once taxes are factored in.
Other Common Hidden Costs
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Attorney Fees: $2,000–$5,000 depending on complexity.
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Title Insurance (Condos Only): 0.5%–1% of the purchase price.
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Transfer Taxes: 1%–1.425% for NYC + 0.4% NYS on sales over $1M.
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Mansion Tax: Starts at 1% on homes $1M+ and increases with price.
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Capital Gains Tax: Up to 20% federally, plus state and city taxes.
Final Thought
Owning property in NYC is about more than the purchase price—it’s about understanding the layers of ongoing costs that come with it. By planning ahead and working with a seasoned agent who knows how to navigate these financial nuances, you can avoid surprises and make confident, informed decisions.
