What to look for when buying a Pied a Terre
As we approach the end of the year and step into the holiday season, there’s one question I get asked often during year-end gatherings, particularly from parents with children graduating:
'Does it make sense to buy a pied-à-terre for ourselves, that our kids can use after graduating from school?'
The answer really depends on your long-term goals and a clear understanding of how your kids might utilize the space. It’s a deeply personal decision. However, if you’re leaning toward making this investment, I’ve put together a guide on what to consider when buying a pied-à-terre.
What to Look for When Buying a Pied-à-Terre in NYC
New York City is one of the most desirable places in the world to own a pied-à-terre, offering an unparalleled blend of culture, business opportunities, and entertainment. But finding the right property for a second home or occasional retreat requires careful consideration.
Here are key factors to keep in mind:
Building Policies
Not all buildings in NYC allow pied-à-terres. Co-ops, in particular, may have strict policies regarding part-time residency or subletting. Condominiums tend to offer greater flexibility and are often the preferred option for pied-à-terres. Always confirm the building’s policies before making an offer.
NOTE- If you can find a co-op that allows it - there are a few benefits, among them the avoidance of the mortgage recording tax-but speak with your tax advisor first.
Location, Location, Location
Choose a neighborhood that matches your lifestyle and priorities. Do you love the high-energy vibe of Midtown, the artistic flair of SoHo, or the charm and serenity of the Upper West Side? Proximity to transportation, dining, and cultural hotspots is essential.
Amenities That Matter
For part-time residency, prioritize amenities that enhance convenience and security, such as 24/7 doormen, concierge services, and secure package rooms. Bonus features like fitness centers or rooftop terraces can add value to your experience.
Size and Layout
With a pied-à-terre, functionality often takes precedence over size. A studio or one-bedroom with an efficient layout can be ideal. Look for properties with modern finishes to minimize the need for renovations.
Carrying Costs
Monthly expenses, including maintenance fees (for co-ops) or common charges and taxes (for condos), can add up. Ensure these costs fit your budget, especially if the property will only be used occasionally.
Financing and Tax Implications
Financing and tax considerations for a pied-à-terre can differ from those for a primary residence. Co-ops may require higher down payments or even restrict financing. Additionally, non-primary residences may face higher property taxes. Consult a financial advisor for tailored advice.
Resale Potential
While a pied-à-terre is primarily a personal purchase, it’s still an investment. Focus on properties in well-maintained buildings and desirable locations to maximize resale value down the line.
Work with a Trusted Expert
Navigating NYC’s real estate market can be complex, especially when it comes to pied-à-terres. Partner with a real estate agent who understands co-op and condo nuances and building policies to streamline the process.
Owning a pied-à-terre in NYC isn’t just a luxury—it’s a gateway to experiencing the city on your own terms. With thoughtful planning and expert guidance, you can find the perfect home away from home in the heart of the Big Apple.
Thinking about purchasing a pied-à-terre in NYC? Let’s connect to explore your options!
