677 viewsBy Deborah Miller, Licensed Real Estate Salesperson
Whether you’ve moved out of NYC and want to keep a foot in the Big Apple or are looking to regularly visit, pied-à-terres can be a savvy solution. The French term translates to "foot on the ground" and generally refers to a secondary residence maintained for convenience, often in a large city. Shopping for a pied-à-terre, however, requires many of the same considerations as purchasing a full-time residence, with some limitations. Here are three steps to take when deciding if a pied-à-terre is right for you.
1) Tally Your Expenses
Buying nearly any NYC property will entail monthly maintenance (aka HOA charges) and real estate taxes, in addition to mortgage payments. Not unlike when purchasing a primary residence, it is key to understand what your monthly carrying costs will be to determine if a pied-à-terre is a financial fit. After all, buildings and insurance providers won’t generally permit pied-à-terres to serve as investment properties for rental income.
2) Consult Financial Advisors
When deciding whether a pied-à-terre is a fit for you, connect with your mortgage lender if you’re planning on financing your purchase. Mortgage rates are typically higher for pied-à-terres. It can also be helpful to enlist an insurance broker for intel on rates, as well as an accountant to go over tax consequences.
3) Streamline Your Shopping Experience
Not all NYC buildings are pied-à-terre friendly, so this will require some thorough research on your part. There are other factors to consider as well, including location, amenities (if any), and design details that can make or break your decision. To help streamline things, consider enlisting a real estate broker with a comprehensive knowledge of the area. These professionals can help move things along while highlighting the best locations/buildings for your needs.
