What is Flip Tax?

As a Real Estate Broker in Queen, New York I’ve helped numerous families and first-time home buyers purchase a co-op. This type of real estate transaction requires a lot of attention to detail. In the video above I break down one of those details.

What is a Flip Tax?

A flip tax is a fee that is associated with the selling of a cooperative (co-op) unit. It is a fee charged by the co-op board upon the sale of a property. It can range in price from co-op to co-op. It could be a percentage of your profit or a flat fee per share. The fee is typically paid by the seller of the co-op. Not every co-op board requires a flip tax. 

Pro’s of a Flip Tax: 

Keeps building’s reserves high, which allows for a steady maintenance fee. 

Cons of a Flip Tax: 

It has to be paid and could eat up your profits. 

When purchasing a co-op with a large flip tax it is wise to evaluate how long you plan on keeping this investment. Does the building allow unlimited sublet? A large flip tax can really eat into your profit if you are planning on using your profits to upsize in the future.

Queens Home Buyers: Co-op vs. Condo's

Co-op vs. Condo

New York real estate can throw consumers for a loop when it comes to the different types of ownership in regards to apartments. Many first time home buyers get deterred simply because the difference between cooperative units and condominiums can be difficult to understand at a glance.

There are many key differences between Cooperative apartments (“co-ops”) and condominiums (“condos”). When you purchase a co-op, you are buying stock in the corporation which owns the apartment building. In exchange for purchasing the shares of stock, the building then "leases" the co-op unit to you under a long-term proprietary lease.

Co-op owners pay a monthly maintenance to the corporation for various expenses related to maintaining and operating the property, taxes and any mortgage the building may have.

When you purchase a condo, you are buying an individual parcel of real property – just like a house or townhouse. With condos, the building is divided into individual condos and a common area where the owner of the condo unit owns the actual apartment and an undivided interest in the common area. As the owner of the condo unit, you will be responsible for paying your own real estate taxes, as well as paying for your share of the common charges which cover the expenses to maintain/operate the common areas. Some benefits to owning a condo are that the appreciation of your unit tends to increase at a higher rate than co-ops and many common charges are lower than co-ops maintenance charges. This means you'll build more equity, much faster, in a unit. Co-ops have many policies to follow in regards to subletting, pets and renovations. Condos usually allow the owners complete freedom of their unit

Usually, condos cost significantly more than co-op units. That being said, a condo buyer also has additional closing costs for things such as title insurance and mortgage recording taxes. Co-ops typically cost less than a similar condo unit, but require a 20% - 30% down payment, as well as board approval before purchasing.

Here are a few key differences to make note of:

• Condos are real property, while co-ops are owned shares in a building's corporation.

• Condos usually cost more than co-ops do.

• Condos require less of a down payment, while co-ops require 20% - 30% down.

• Co-ops require board approval (application, interview, DTI, etc), condos do not.

• Co-ops typically have more house rules, while condos do not.

3 Tricks That Will Make Your Small Space Feel Big

If you own a studio or a small one bedroom in Queens or Brooklyn and you might be struggling with the sizing of your apartment. Thinking about throwing the towel and upsizing? 

Not to worry with the following clever solutions you will be able to maximize and optimize your space and get a couple of more years on your 500 square feet bachelor apartment.

PAINT MAKES YOUR SPACE SEEM BIGGER

Selecting the correct paint shade for your small apartment can instantly give your space the impression of being larger. The key is to stick to neutral colors such as white, cream or even a light gray. Those colors will make your room look larger by creating a bright and airy feel. Light pastel tones make spaces appear larger while deep/dark tones make spaces seem closed in and tight. 

If you do decide to go with a light color try painting the ceiling white to help draw the eye up and create an airy and inviting space. 

If you want the space to look cozy use a dark color paint paired with a white ceiling. It will give your apartment a unique design.

Whether you are trying to make the space look larger or smaller the choice of paint is highly important. 

CRAFTY STORAGE

With tight spaces it's hard to find the storage space necessary for all your things. By incorporating space saving solutions into your apartment's design you will have more space and avoid the look of clutter. 

Try a roll away island and pantries! It's clever and looks amazing! They are flexible and will really give you a nice clean look for your kitchen. Similarly, try adding shelving on the walls. 

You don't have to buy anything to be crafty. Just think about utilizing spaces that are not being used like on top of a burrow or cabinets. Remember, the walls are your friend when it comes to a small apartment. Get your hardware tools out and get those shelves up!

MULTI-TASKING FURNITURE

When buying furniture think double duty! Each piece of new or old furniture should at least have 2-4 functions for storage. They need to have hidden storage and be able to be compacted or put away. Think transformers "couch that’s in disguise."

What’s all the new craze is Murphy Beds, fold down dinner tables, fold out beds, and other unique functional combos.

Having a small place does not mean you have to be cluttered and or feel claustrophobic. It can be cool and sleek if done correctly! So before you throw in the towel on your small space remember with creativity and vision you can make it happen!