Reasons to Buy an Apartment in New York City By Sid Gandotra

1. 286 Fifth Avenue 8th Floor | New York, NY 10001 | P: (212)300-6412 | F: (212)937-3757 | www.opgny.com Is Right Now a Good Time to Buy an Apartment in NYC? If you're coming across this article, chances are you're wondering to yourself whether right now is a good time to take your hard-earned money and buy into New York City real estate. Given the economics of buying property in NYC, this is an absolutely reasonable question. The main value you will get out of this read is understanding more about how you react with uncertainty, as opposed to receiving a clear cut answer. Similarly, to receiving investment advice, every person has a different tolerance to the risk-reward relationship. The key is to understand what your objectives are when it comes to buying a condo or co-op in NYC in the current market and then finding the right fit. Current Market Conditions - 2019 The New York City real estate market is currently in the midst of a buyer's market. We documented the start of this trend in 2019 and have provided details on the benefits of a buyer's market for clients looking to purchase apartments in the city. What is a Buyer's Market? A buyer's market is when there is so much property inventory on the market that prices of real estate are kept down. When inventory is at an all-time high, and properties are staying on the market for extended periods of time, it generally means that the buyer wields the power in the transaction. Here is a screenshot from the Q1 2019 StreetEasy Market Report

2. 286 Fifth Avenue 8th Floor | New York, NY 10001 | P: (212)300-6412 | F: (212)937-3757 | www.opgny.com HIGHLIGHTS: Manhattan Price Drops: Sales prices in Manhattan dropped by 5% according to just about $1,105,000 on the average property transaction. Brooklyn Sales Prices Increase: Brooklyn has been holding steady, increasing to $712,000 on the average property transaction. However, sellers have been cutting their asking prices, coming back to reality. Queens Prices Increase: Sales prices in Queens are up 3% year over year, averaging out at $522,000. Leading up to 2018, prices in New York City, inclusive of Manhattan, Brooklyn and Queens had been reaching record highs. Who was the happiest about this? Sellers! Who wouldn't want to cash out and make a sizable capital gain on the sale of their apartment. But who is most nervous when prices keep running away and up? Buyers! Up until 2018, bidding wars were the norm for many apartments, condos and co-ops included. Many buyers felt that they were being forced to overpay or risk walking away from their dream of buying a slice of NYC. Lose out on one bidding war and jump right into the next was the attitude. So now we are in a Buyer's market - Sellers are pricing more realistically and willing to negotiate prices down. New York City Real Estate is officially a Buyer's Market StreetEasy, NYC's premier listing site, has reported that over the past three months available sales listings have peaked to new highs. The following figures represent the year over year percentage increases of sales listings available on StreetEasy: Manhattan: 16.7% Increase Brooklyn: 23.4% Increase The combination of increased inventory and combined impact of less transactions taking place is resulting in record numbers of condos, co-ops and townhouses sitting on the market for extended periods. With absorption rates low, the opportunity is ripe for the savvy buyer to find a deal. Apartments that are professionally managed also makes owning them much easier for investors. If you plan on using your property as a pied-à-terre, you can rest assured that your apartment and its staff will always be prepared for your arrival. If

3. 286 Fifth Avenue 8th Floor | New York, NY 10001 | P: (212)300-6412 | F: (212)937-3757 | www.opgny.com you plan on renting out the property to rental tenants, any maintenance issues that may arise will always be handled by the property's management company. This is of great benefit to apartment owners who don't want to be bothered by day to day operations related to their property investments. Professionally managed apartments will also continue to command high resale values. How Does a Buyer's Market Work? As a potential buyer, you have the opportunity to get a good deal out of this when you purchase a property. We work with buyers to navigate these market conditions and identify properties that make excellent investments, whether you plan on living in them or using them as income properties. Some of the things you may want to look to identify opportunities: Properties that have been on the market for extended periods of time Properties whose listing has recently switched from one brokerage to another Properties that have recently seen price drops Properties that are offering concessions at the closing What Type of Deal Can You Get in this Market? There are numerous opportunities to save money on a home purchase when it's a buyer's market. Since sellers are not in control, they will be very happy when they have any buyer come their way and show interest in their respective properties. Some of the deals we've negotiated for our buyers include the following: Reduced closing costs on new development. Making the developer pay transfer tax and mansion tax. Price negotiation. Significant discounts in sales prices. Having sellers provide concessions at closing, thereby offsetting closing costs. Sellers paying real estate taxes for an entire year. How are buyer's reacting to the buyer's market? Everyone is reacting differently, but here are some varying and trending themes: Scenario 1: The buyer's market is an opportunity to buy an apartment at a lower price than I could last year. Now is the time to find something I want, at the price I can afford and be patient with my selection.

4. 286 Fifth Avenue 8th Floor | New York, NY 10001 | P: (212)300-6412 | F: (212)937-3757 | www.opgny.com Scenario 2: The buyer's market makes me nervous. Why is there so much inventory? Why is everyone slashing their prices? Can it go lower? I'm hesitant about moving forward but still curious to see what's out there. Transactions are still happening every day of the week. Buyers are buying and sellers are selling. We work with our clients to help them identify their objectives and then match them with a strategy that helps them meet these said objectives. Our job is NEVER to convince you to buy. That realization must fall on you, the client. We provide you with the guidance, the numbers, the negotiation, acquisition strategy and white-glove service through the entire transaction. However, the decision of whether you are interested and ready to buy in a buyer's market is going to be closely aligned to how you feel about your core objective of actually purchasing an apartment. Reasons you may want to Buy an Apartment in New York City NYC real estate is a good investment with decades of long-term appreciation Condos and co-ops are highly sought after by both local and international buyers Properties are liquid and can easily be bought, sold or rented Buying beats renting, when it comes to having your money work for you Build equity in the property Capital appreciation Tax deductions (mortgage interest, real estate taxes) Perks of Buying a Condo or Co-op Right Now More Inventory: The market is your oyster. Whether you're looking in Manhattan, Brooklyn or Queens. Condos, co-ops, new developments, resale’s...You have your pick. Long Listing Time: Properties are staying on the market longer. This means you can be more patient about your selection. Price Negotiation: Ready to make a deal? So are sellers. Many listing prices are already baking in a discount, but imagine being able to shave some more off the top. We can help do that for you. Transfer Taxes / Flip Taxes: For new development, many sponsors are now willing to cover transfer taxes, which can range anywhere from 1.40% to 2.075% for NYC and NY State taxes, depending on the cost of the property.

5. 286 Fifth Avenue 8th Floor | New York, NY 10001 | P: (212)300-6412 | F: (212)937-3757 | www.opgny.com Additionally, many co-ops have flip taxes for resales. Sellers may be willing to eat these costs (based on effective negotiations). Interest Rates: Currently, the interest rate environment is still quite favorable. Whether you're looking to lock in a 30-year fixed mortgage or a 5- 1ARM, with rates still relatively low, you will be able to lock in your cost of living. The Grand Finale We're not big into writing conclusive statements about what you should or shouldn't do with all this information. Clearly you're here, and you've made it to the bottom of this read and you should feel good about the fact that you have taken the time to continue informing yourself about such an important decision. Whether you're just starting to think about buying, have mulled over it for the past year or are not sure at all...those are all worthy emotions to have right now. Is right now the best time to buy? That's going to be dependent on you, your outlook and your financial situation. Where do you see yourself today vs. next year? Where do you want to be? Owning, renting, investing? Now is a good time to buy into the market, but that doesn't mean it's the right time for you. It could also be the perfect time for you! Decisions.. Good thing you don't need to decide anything on the spot, but we are always happy to help. If you liked the tone of this read and would like to chat more about strategy, options and real estate opportunities, don't hesitate to drop us a message below. We'll personally get back to you. Contact Information Sid Gandotra Licensed Real Estate Salesperson OXFORD PROPERTY GROUP M: 201-281-9651 E: sid@opgny.com “Educate, Engage & Empower”