From Luxury Listings NYC: Once a buyer has laid out millions — many millions — of dollars for a prime piece of the NYC pie, they still have to shell out big bucks to maintain their palatial home. After all, living in the lap of luxury doesn’t come cheap: condo fees, taxes, over-the-top amenities and, of course, the staff that keeps these glittering properties in tip-top shape can add up faster than you can say, “show me the money!” [more]
Posts Tagged ‘maintenance fees’
Co-op and condo buyers beware: maintenance fees are going up. With the contract for building service staff workers up for renegotiation and real estate taxes that are continuing to climb 5 to 12 percent annually, management companies have little choice but to raise fees in next year’s budgets.
And these inevitable increases are pushing buildings to cut costs, Aaron Shmulewitz, head of the co-op and condo practice at the law firm Belkin Burden Wenig & Goldman told the New York Times. [more]
Maintenance fees in Manhattan have risen 30 percent since 2008, despite a sharp drop in home prices following the housing bust, CNBC reported. Monthly costs now come in at an average of $1.70 per square foot, and have risen at twice the rate of inflation, according to appraisal expert Jonathan Miller of Miller Samuel. [more]
Buyers of apartments in the Carlyle co-op hotel on East 76th Street pay $10.23 per square-foot per month in maintenance charges for services such as twice-daily housekeeping, bathrobe and sheet use, discounts on hotel services, training sessions and room service. According to the New York Times, the price, which comes out to $455,352 for Hollywood power broker Brad Grey’s 3,000-square-foot apartment, is the highest in the city.
The Trump Soho ($7.60 per foot), Trump International ($6.72), the Sherry-Netherland ($6.03), the Mark ($4.47) and the Stanhope ($4.32) are some of the other Manhattan apartment buildings with the highest common or maintenance fees, according to Miller Samuel data. [more]
As monthly charges for co-op and condominiums continue to increase, many residents are exploring a cheaper alternative called self-management, in place of a super, according to the New York Times. A small percentage of buildings in New York City, most of them with only a handful of units, operate on this system, where residents are responsible for everything from taking out the trash to balancing the books and filing required forms with the Department of Buildings. The amount of money saved through this method can be as much as $750 a month, as is the case in a self-managed 12-unit prewar co-op in Park Slope, where two-bedroom apartments have sold recently for $589,000 and $575,000. As the economy struggles to recover, industry experts have noticed a growing interest in this “do-it-yourself” route. According to Rebecca Poole, the president of Real Estate Management Group, the three-part workshop that she teaches on self-management has started to attract representatives from buildings that are larger than the typical self-managed property. [NYT]
Co-ops in the city have raised their maintenance charges by as much as
15 percent recently as a result of rising property taxes and operating costs.
John Janangelo, president of Bellmarc Property Management, said taxes
for some of the buildings the company manages have risen by 35 percent this year. “It comes
at the worst time,” Janangelo said, adding, “You don’t want to pass through
these huge increases because people can’t afford them, but you have no
choice.” Buildings whose property values have soared in recent years
are experiencing even bigger tax increases because the assessed values
of their buildings have gone up. David Kuperberg, president of Cooper
Square Realty, said the assessments have increased based on last year’s
market, and assessments often take a while to catch up to the current