New York City

INTRODUCTION

The excitement of Manhattan living – the skyscrapers, the 24-hour variety of virtually anything - makes it easy for employees being transferred to New York to say yes to new job opportunities; however, moving here without professional destination assistance can be overwhelming. OneWorld relocation professionals are trained to assist the Manhattan bound transferee in selecting where they want to live, within a short amount of time, leaving them with a content feeling that they have chosen not only a suitable home, but a well chosen neighborhood.

So where in these varied neighborhoods would you, as a transferee look to settle upon acceptance of a new job? In order to succeed in finding a home while remaining professionally productive, OneWorld suggests you should focus your initial search in just a few select neighborhoods closest to your needs. Only if an initial selection has been exhausted should you start a whole new medley.

So what are your needs?

The most fundamental way to narrow down the vast Manhattan search is by the manner in which you wish to commute. “Is it a necessity to walk to the office?” If the answer is “Yes”, you’ve quickly passed ‘Go’ and identified your 20-block radius. “No”, and we will now take you through the labyrinx of the neighborhood selection process.

• The commute issue makes Midtown West a geographically desirable solution due to the high density of financial institutions and law firms residing in the forties and fifties at Six Avenue. Ideally, if you work in this area, you can walk the few blocks to work, benefit from the easy access of nearby bridges and tunnels and more importantly purchase a home for about twenty seven percent less money then its prime northern neighborhood, the Upper West Side.
  
  
• Conversely, at the opposite side of the island, Midtown East which encompasses somewhere around 48th Street to 59th Street would be a convenient area if your office resides along Park, Third and Lexington Avenues. There are many buildings to choose from and you might still get a good deal buying and especially renting in such areas.
  
  
• If the deciding factor isn’t so plainly established by commute, perhaps an essential lifestyle choice is: “What type of hobbies to you enjoy?” If you are a runner, biker, skater, or walker, close proximity to Central Park is a good reason to start looking in the prime Upper West and East Sides; though understand that these two neighborhoods tend to warrant the highest sale and rental prices.
  
  
• Or, the beautiful new Hudson Park, situated downtown near loads of modern and renovated buildings might capture your attention if you appreciate the outdoors (and tremendous views), yet will find more affordable prices for the money in Battery Park City and the Financial District.
  

Ultimately, if all else fails, “What type of apartment will best suit your needs?”

• If you require a larger family style apartment with eat in kitchens, you might want to start looking primarily in the Upper West Side which is filled with ‘Classic Six’ apartments (two bedrooms plus a maids quarter which can be used as a third bedroom if necessary).
  
  
• If you work for a government agency and might need to be within ‘reactive’ walking distance of your office, Turtle Bay, Kips Bay, and the UN area might be desirable. These areas are also appealing due to the wide, yet reasonable price ranges offering entry level studios, one and two bedroom rentals.
  
  
• If you ask for large spaces and/or high ceilings you might be better off starting in Soho and the surrounding neighborhoods for lofts. However, keep in mind, location, location, location as 2,000+ sq. ft. lofts typically sell and rents on the higher side of the range.
  
  
• If you are one of the many people determined to own a piece of New York City, yet cannot afford a prime neighborhood price you might find yourself searching in frontier neighborhoods such as Little Italy & Chinatown where studios can be found or the greatly sought after areas of Harlem where you can get an entire 3-story brownstone.

And, after all is said and done, a most crucial consideration when determining where to live might have nothing to do with your own personal preferences yet will easily eliminate a large amount of inventory. “Can you, as a transferee consider a cooperative, a building where residents own shares in a corporation and not real property?”

Cooperatives regularly prohibit “third party” transactions as well as restrict owners from subletting; and therefore, most corporations disallow employees from purchasing cooperatives should Manhattan be a transitory location – WE URGE YOU TO CHECK YOUR RELOCATION POLICY AND/OR SPEAK WITH US BEFORE YOU DECIDE TO PURCHASE A COOPERATIVE. This prohibition might ultimately eliminate a substantial number of buildings falling under the strict regime although there are plenty of condominiums, townhouses, brownstones and still a few cooperatives that will to make transfer of ownership trouble-free.

Of course, there is always the rental option as Manhattan has in excess of 800,000 rental units in all types buildings and neighborhoods.

New York City isn’t just a new location to settle into, but an amazing lifestyle in which to enjoy. The best assistance we, as metropolitan based relocation specialists can give to our transferees is well-informed options, and assistance to stay focused in an overwhelming choice of city living. Whether Manhattan bound transferees seek a 500 square foot studio or a duplex loft, many love to own a piece of the Big Apple becoming full time residents. There are many ideal homes in which to choose from in every neighborhood whether it is a towering condominium, a two-floor walk-up, a townhouse, or a rental unit. And, as the isle of Manhattan is only 301 square miles**, smaller than some of the most desirable tri-state counties, there is unmatched diversity in NYC neighborhoods, various type ownerships, and an unlimited variety of amenities.

RENTER’S GUIDE

FINDING A RENTAL APARTMENT IN NEW YORK CITY

In order to maximize the availability of apartments, we suggest that you not begin your search any sooner then 4 weeks prior to the intended occupancy date.

There are three types of categories of buildings in which a person can rent and each property has its own rules, regulations and application paperwork affecting the time frame in which a tenant will be able to move into the apartment.

• Rental building which typically makes for the easiest transaction since it is only the managing agent who gives approval
  
  
• Condominium, again a fairly simple entry process dealing with the “owner” of the unit
  
  
• Cooperative which tends to be time consuming as a tenant must follow rigorous application and interview rules to gain approval to lease.

Since New York City’s real estate market is at a fast pace, should you see an apartment you like, put it on the top of your wish list and make a good but swift decision to submit an application. Being first to apply does not guarantee that you will be the chosen tenant. Do not take anything personally in New York City when seeking out an apartment as there are many factors a landlord will consider from all viable tenants before make his/her decision.

FINANCIAL ARRANGEMENTS AND PAYMENTS

Upon submitting an application of your chosen apartment, you will typically need to produce one month’s rent at least two month’s security deposit if you do not have American Credit History. Landlords Do Not typically accept personal checks so payment will need to be made with either a bank check, certified check, travelers check or cash. In additional to the rent and security there will be processing, application, and move-in fees. Very few buildings take credit cards for any of the aforementioned.

Landlords will typically qualify a tenant based on their annual salary, and credit history (financial stability shows well too). Landlords will look for tenants with great, if not perfect credit, and an annual income of 40 – 50 times the monthly rent in annual salary.

For example: a $2,500 per month apartment will require an annual salary of at least $100,000 at 40 times $2,500.

If you are eligible for a housing subsidy by your employer, the company’s contribution is favorably looked upon and therefore you will only need to qualify for the monthly rent amount that you are responsible for.

Landlords will use all lease applicants’ combined salary in order to qualify. If you do not meet the required credit score or annual income requirement you might be asked to produce an extra security deposit or a guarantor/co-signor. Typically a guarantor must live in the United States.

MISCELANEOUS

• Upon choosing a move in date, please keep in mind that most buildings require you to reserve in advance their “service” elevator. Most move-ins are allowed Monday thru Friday between the hours of 9:00am to 5:00pm.
  
  
• Landlords do not typically accept ‘out’ clauses and therefore, will hold you responsible for the entire term of the lease should you move out early. Or, many times hold you responsible only until you help find a new tenant to satisfy the rest of the term of lease.
  
  
• Some landlords will accept foreign nationals without extra security or guarantor if the employee can provide:
  
  • A letter from their employer that a social security number is being processed
    
    
  • An employment verification letter, attesting your title, start date, length of assignment with the company, and annual salary
    
    
  • A business reference written on letterhead by a U.S. colleague or a reference letter from your prior landlord in your prior city

BUILDING TERMS

Pre-War Buildings are those built before World War II. These buildings tend to be less than twenty stories and are recognized for architectural interest with features such as larger rooms and/or arched windows, hardwood floors and higher ceilings. These can be doormen or non-doormen.

Post War are larger buildings than Pre-War, built between the 1950's through the 1970's. Most will have doormen. They can be found on most city blocks constructed of white, red or brown brick.

Modern Buildings are generally built from the 1980's through the present and tend to be condominiums or rental buildings. They are mainly hi-rises with doormen and/or concierge services. Many will house a health club and/or pool within the building.

Loft Apartments are usually large open spaces with high ceilings and big windows. They are predominantly located in the downtown neighborhoods and do not have doormen. Loft Apartments are typically the most expensive type of unit.

Brownstones or Townhouses are usually 4 to 6 stories and are either single family homes or have been converted into multiple apartments (usually one per floor). Generally, these buildings offer a lot of charm with wood moldings, fireplaces and outdoor space, however do not have doormen.

Walk-up buildings are less than 6 stories without doorman, yet will have some type of security system for residents. This is one of the least expensive forms of housing within New York City.

Studios & Alcove Studios are one or two rooms combining a living room and sleeping area, sometimes in an "L" Shape. The kitchen may be within the same room or separate.

Convertibles, "Flexes" and Junior 4's are apartments with either an alcove that can be "walled off" to create an additional bedroom, a separate dining room or a large enough living room to split, making an additional bedroom while still retaining some of the living room space.

BUYER’S GUIDE

FINDING A HOME TO PURCHASE

• DETERMINE YOUR PURCHASING POWER. Speak with OneWorld Relocation Specialist to obtain a Mortgage Lender/Broker if your company does not provide one for you and obtain written pre-approval for a loan. Pre-approval helps you determine your purchasing power and enables you to act expeditiously and with confidence when you identify the property you would like to purchase. Additionally, a pre-approval assures the seller that you are qualified, providing you with an advantage when bidding. This is especially helpful when there is multiple interest in a property (more than one person is considering the property).
  
  
• ATTORNEYS ASSIST IN CLOSING THE PURCHASE IN NEW YORK. Your OneWorld Relocation Services will help you select a Manhattan Attorney who specializes in residential Real Estate, if your company doesn’t not provide one for you. As New York City has complex real estate laws your want to be sure that your attorney is aware of the New York laws. Time is often critical; be sure your attorney is available to move quickly.
  
  
• HAVE YOUR DOWNPAYMENT READY. The customary downpayment/escrow upon executing a contract of sale in New York City is 10% of the purchase price. Ideally, be prepared to have those funds liquid when you begin your search. The balance of the down payment will be due upon closing.
  
  
• HAVE COPIES OF THE DOCUMENTS YOU WILL NEED TO VERIFY YOUR ASSETS READY. You will need to have back up substantiating documentation to verify your net worth statement (bank statements, brokerage statements & other financial documentation) available for the lender and in the New York City area for review if you are considering buying a cooperative apartment (see definition section for an explanation of the cooperative form of home ownership). With cooperative purchases offers are accepted not only on the amount you offer, but also on the financial and social strength of the buyer. Because the seller of a cooperative apartment must find a buyer that the Cooperative Board will approve, the seller may require you to provide a detailed explanation of your financial and social qualifications with your offer. Be assured your agent will safeguard any information you provide in a confidential manner.
  
  
• DETERMINE THE AMENTIES YOU WOULD LIKE TO FIND IN YOUR NEW NEIGHBORHOOD Your move to New York City, allows you the ultimate opportunity to live in a neighborhood that fits your needs and still is easily accessible to the office. One of the very special features of New York City, is that each neighborhood offers an array of amenities to satisfy your recreational, educational, cultural, social or religious needs. OneWorld Relocation Services will assist you in finding the neighborhood/s that
  has just what you and your family wants.
  
  
• OneWorld RELOCATION SERVICES WILL CHOOSE A QUALIFIED AND PROFESSIONAL REAL ESTATE AGENT BASED ON YOUR INDIVIDUAL NEEDS. Be specific about your needs, price point, locations of interest and any other amenities you require in your new home or building. Remaining somewhat flexible and being willing to consider alternatives will only work to your advantage. 
  
  
• BE AVAILABLE TO SEE APARTMENTS. Your Agent will schedule appointment for you to view properties that meet your criteria. When scheduling appointments, try to be available during the week. In addition to evenings, early morning and late afternoon is a good time to schedule appointments. In addition, by avoiding weekend and open house showings you allow yourself to view properties without fighting crowds of people (competition) and giving you more time to ask questions and get a "feel" for the property. Be sure to give yourself enough times to see enough apartments to satisfy your personal needs. Some people feel comfortable making an offer on a property they like even when they have only seen a few apartments and others feel they must see a significant number of properties before they determine what they like.
  
  
• New York City does NOT have a formal multiple listing system for residential properties on the market. However, because the major real estate companies have a sharing arrangement your Agent will have the ability to show you properties on the market through other companies. You do not need to spend your time calling other brokers and finding properties. If you see something that interests you in an advertisement or on the internet just let your Agent will arrange for you to see it.
  
  
• SUBMIT AN OFFER. Your Agent will submit a verbal offer and will often follow up with the offer in writing. The offer will include such terms as purchase price, down payment, if the purchase is contingent on your obtaining financing and the amount of financing, included and/or excluded personal property (i.e. window treatments, lighting fixtures, etc), preferred closing date, and with New York cooperatives where the seller must also determine if the Cooperative Board will accept the purchaser the following additional information is often provided: current income, job description, net worth, and debt status (loans, credit, etc.). The seller may respond verbally and “counter” your offer. You and the seller may “negotiate” back and forth verbally until your offer is verbally accepted by the seller. Once your offer is verbally "accepted" by the seller, the broker will notify the seller's attorney who in turn will draw up and send to your attorney a draft of the contract of sale.
  
  
• Keep in mind that sellers are allowed to hear ALL subsequent offers while the contract is being negotiated (or finalized) between your attorney and the Seller’s attorney. In fact a seller may accept another purchaser's offer up to the point of a fully signed, executed and returned contract. This means that until your contract is signed by both you and the seller, your deal may not go through. Therefore, instruct your attorney to proceed expeditiously.
  
  
• DUE DILIGENCE is completed on the property/ building and/or the cooperative corporation prior to your executing the contract. Your attorney will be provided with information on the cooperative corporation. This is the time period for you to get answers to all your concerns about the building and your ongoing obligations related to the building where the property is located. If you have any questions about the building or if you are buying a cooperative, the cooperative corporation or the different forms of ownership you must resolve them before you execute the contract.
  
  
• EXECUTION OF THE CONTRACT. Your attorney will present the finalized contract to you for execution. You will need to give the attorney a personal check for 10% of the purchase price (the deposit) when you execute the contract. The deposit is held in escrow by the seller’s attorney until closing. The seller then signs the contract and your attorney will deliver one original to you and one to your mortgage broker/bank. Again, it is important to be aware that until your attorney receives a contract that has been fully executed (with your signature and the Seller’s signature) the seller does not have to sell the apartment to you.
  
  
• OBTAIN YOUR FINANCING. Complete all paperwork required to obtain your mortgage commitment or loan commitment.
  
  
• For Cooperative Purchases only COMPLETE THE BOARD APPLICATION. Your Agent will assist you in completing your board application (also called the board package). Your broker will get you a copy of the specific application for the specific building in which you are buying. The application varies from building to building, but often requires the following: statement of net worth, employment verification and/or pay stubs, letters of reference, copies of tax returns, and the loan commitment letter and loan application, many of the same items which are required for your lender. Once completed, your broker will in turn deliver it to the seller’s broker for review. It will then be submitted to the cooperative board for processing and review. The cooperative application usually needs to be submitted to the cooperative board in the following time frames: if you are not obtaining financing – 10 business days after receipt of the fully executed contract or, if you are obtaining financing 3 days after receipt of the loan commitment letter is received, whichever applies.
  
  
• The Contract of Sale requires that you act in “good faith” with regard to the Board application. All questions and requests for documentation must be complied with. Both the application form and the Net Worth Statement should be typed and the package should provide a clear and concise assessment of your qualifications to purchase. Your Agent is there to assist you with your completion of the board application.
  
  
• THE BOARD INTERVIEW. After review of your board package, the board will typically schedule an interview to meet with you. Boards vary in the manner in which they meet with applicants so please check with your broker to find out how often the board meets or if they have a separate interview committee that meets on a case by case basis.
  
  
• NOTIFICATION OF THE BOARD”S DECISION. After the interview, notification of the board's decision is given to you or your Agent. There is no standard timeframe for the board to advise of its decision. Typically, a decision is rendered in a few days but some boards take substantially longer. Your agent will try find out how the board in the building where you will be purchasing operates.
  
  
• For Condominium Purchases only COMPLETE THE APPLICATION FOR WAIVER OF FIRST REFUSAL. The seller of a condominium must obtain from the Board of Manager’s a waiver of the Board’s right to purchase the apartment at the same price and terms as the transaction “on the table” (waiver of the right of first refusal). The contract of sale is submitted with an application completed by the purchaser. Your Agent will assist you in completing the waiver of right of first refusal application. The waiver of the right of first refusal application usually needs to be submitted to the Board of Manager’s in the following time frame: within 10 business days after receipt of the fully executed contract.
  
  
• SCHEDULING OF CLOSING. Upon board approval or granting of the right of first refusal, your attorney will coordinate the setting up of the closing date. The attorney needs to coordinate the schedule of several parties who need to be present at the closing, so discuss with your attorney your own time frame.

The Closing Process

• THE WALK THROUGH (final inspection). The day or two before closing you will be escorted by your agent through the property to ensure the condition is as promised.
  
  
• CHECKS REQUIRED AT THE CLOSING. Prior to the closing, your attorney will advise you of the funds you will need to bring to the closing. In New York City, usually a certified or bank check drawn on a New York State back is required for the remainder of the downpayment. You will also need some personal checks at closing for any last minute adjustments. Your attorney will try to let you know in advance the amount of the checks that are required, but, if you are getting financing, your lender is often delayed in getting the numbers to your attorney.
  
  
• THE CLOSING: The closing is when legal title to the property you are buying is transferred. Therefore, the buyer, the seller, their respective attorneys, a representative of the cooperative corporation, if a buying a cooperative or the title company, if buying a condominium or townhouse, and a representative of the lender if you are getting financing, and the real estate agents need to be present.
  
  
• You will need to bring with you photo identification (usually driver's license or passport), your checkbook for any last minute adjustments, and all certified checks discussed with your attorney.
  
  
• FOR COOPERATIVES: The closing is ordinarily held at the office of the management company for the building. At the closing you will first sign documents necessary to complete the loan transaction which may include a Security Agreement, Promissory Note, Stock Power, and an Assignment of Lease. Thereafter, you will sign all documents to convey the apartment and secure interest in the apartment such as Stock Certificate, Proprietary Lease and Consent and Checks representing the balance of the purchase price and adjustments are exchanged for the keys to the apartment.
  
  
• FOR CONDOMINIUMS OR TOWNHOUSES: The closing is ordinarily held at the office of the seller or lender's attorney. At the closing you will first sign all documents necessary to complete the loan transaction inclusive of a mortgage and promissory note. Thereafter, you will sign all documents to convey the condo apartment to you including a Deed, Title Report, and Unit Power of Attorney. Checks representing the balance of the purchase price and adjustments are exchanged for the keys to the apartment or house.

Congratulations, In either case, when the closing is done you will leave with the keys to your new home.

Definitions of different forms of home ownership

• Cooperative - In this form of home ownership, one owns shares of stock in a corporation that that has been set up to owns the building. Under New York State law, these shares of stock are considered "personal property" similar to any other shares of stock. It is not considered real property. However, for tax purposes, the IRS recognizes this form of ownership as being the same as real property ownership and under normal circumstances any “mortgage” or loan interest incurred by an owner of shares of stock in a cooperative corporation is considered tax deductible. The cooperative corporation (Coop) issues to each shareholder a "proprietary lease" which gives the shareholder the right to occupy their specific apartment. The corporation is governed by an elected, by the shareholders, board of directors who are responsible for overseeing the daily operations of the building, enforcing the by-laws of the cooperative corporation, and acting on behalf of the shareholders to ensure that the building operates as an efficient entity. The Board of Directors usually hires a managing agent to take care of the daily operations of the building. Owners pay to the Coop a maintenance fee, which pays for such items as: the building’s Real Estate Taxes, underlying mortgage, payroll, management fees, supplies and general maintenance. The maintenance fee for each apartment is determined in proportion to the number of shares owned in the corporation. In addition, many coops accrue contingency funds for future capital repairs. Typically, that portion of the maintenance that is attributed to the building’s Real Estate Taxes and mortgage interest is "tax deductible". The amount of your maintenance that is tax deductible may change annually, as the mortgage on the building is amortized and Real Estate Tax charges change.
  
  As this form of home ownership actually owns stock in a private corporation, approval to purchase such shares of stock must be granted by the board of directors. Thus, a purchase application must be submitted to the board requesting approval to transfer/purchase these shares. This application typically requires a the following: net worth statement with full backup documentation (bank statements, brokerage and retirement account statements, etc.), 2 years tax returns & W-2's, verification of employment or accountants letter, 2 personal and 2 business letters of reference, landlord reference, a credit check authorization, and a completed application provided by the board. In addition, the board will require an interview in order to meet you and make any inquiries regarding the information you submitted or questions they may have. The board has the right to approve or deny any applicant without cause.
  
  
• Condominium - In this form of home ownership one owns "Real Property" much like owning a house. The condominium residents elect a "board of managers" who are responsible for overseeing the operations of the building and enforcing the "house rules" of the building. The main difference between owning a "condo" and a "house" is, in addition to owning the apartment, you also own a small percentage of the "common elements" of the building such as the halls, stairwells, basement, etc. Each homeowner receives a separate property tax bill from the city for their unit. In addition, each owner pays a "common charge" to the Condominium association to pay for such items as: payroll, building maintenance and supplies, management fees, and building repairs. In addition, some condominiums maintain a "reserve fund" in order to pay for major repairs and improvements to the building. It is important to note that although the Real Estate Taxes you pay on a condominium apartment are tax deductible, the common charges are not as they are solely to pay for the building operation and are not attributed to any tax-deductible expenses.
  
  In recent years many condominiums have implemented a procedure whereby purchasers must submit an application to purchase. Unlike in a coop, the board of managers must either approve the applicant or exercise the condominiums "right of first refusal" to purchase the apartment from the owner. Although this is not a common occurrence, it is an option for the board should they choose to exercise it.
  
  In most condominiums, the owner has the right to sublet or sell their apartment with either no board approval or with a minimum board review. In either case, the board must either approve the applicant or exercise their right of first refusal to match the purchase price. For this reason this form of ownership is very appealing to investors, foreign buyers and parents purchasing for their children.
  
  
• Townhouse - This form of ownership provides the owner with a "fee simple" ownership of Real Property. The owner is responsible for payment of all Real Estate Taxes, maintenance and repairs of the property. The sale of the property may be conveyed to any party without prior approval by anyone other than the homeowner. There are two typical types of Townhouses; single family and multiple family. In a single family the property may only be occupied by one family although the entire house may be rented to another single (or family) user. In a multiple family residence, the owner may occupy (or lease out) one of the units while leasing out the other units as income producing entities.

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