You are officially done with renting and roommates, and you are finally ready to purchase your first apartment. At first glance, it might look easy, but like anything in life, there are challenges. As of 2021, NY is still the most expansive city in the USA for buying property. And like in any other metropolis, location is everything. Therefore, it is not just a matter of pointing the finger at a map and settling on a neighborhood. Some will be cheaper than others and have better quality apartments. All this might look daunting, but it does not mean you should give up. With a good strategy and some savings, you will soon be celebrating your independence. So, without further ado, here are all the things you need to know before you buy a starter apartment in NYC. 

What is a starter apartment?

Once you are financially ready to transition from renting to buying, a starter apartment in NYC is where you start. In other words, this is not a home where you will spend the rest of your life, nor raise a family. They are small and compact one-bedroom flats and studios, perfect for young people who are just starting out. And it can be quite an adventure finding the perfect one. As the name says, a starter home will only satisfy your basic needs. That is to say, the entire layout of the starter home is minimalistic. So, before you start looking, you should invest some time in researching space-saving ideas because what you will get is a small kitchen with essential appliances and a tiny bathroom, with most of them missing a bedroom.

Who are the buyers of first-time apartments?

At this time, 65% of New York residents are renters, which is higher than anywhere else in the USA. And it is all due to the extremely steep prices that not everybody can afford. Last year, the price for a single bedroom apartment was 700.000$ and for a studio a whooping 434.000$.

So who are these mysterious buyers? Interestingly enough, the majority is between 25 and 30 years old, all employed and financially stable. They come from all over the USA, attracted to the benefits of living in the center of the business world. And some are looking for help relocating from the neighboring NJ, even though the commute is relatively short. But even with a raise and a bank loan, it is not always enough to buy an apartment in NYC. Many people receive help from family members or use their inheritance because they need to be ready for a down payment of 20% to 30%, which is again a vast difference from 3% that is normal everywhere else in the states.

Affordable neighborhoods for buying starter apartment in NYC

The best possible scenario is that you manage to find a place that is close to your work and thus cut in half the daily commute. For most people, this means that Manhattan is the best possible solution. Unfortunately, it is also the most expensive location in NYC. Instead, enjoy the adventures of buying by looking into more affordable neighborhoods like Murray Hill, Morningside Heights, Clinton, Turtle Bay, and Hell’s Kitchen. And if you are not averse to long travel, then there is always the Astoria. Also, keep in mind that same as in any other metropolis, the further you go from big stations and means of transportation, the lower the prices. So do not immediately exclude places like East Village and Yorkville.

The price will depend on the type of the building

The biggest percentage of buildings in New York is a co-op, and as they are more affordable, this would be a logical first choice. But unfortunately, they do come with certain limitations. For starters, once you decide to sell because you need bigger space, you cannot use it as an income-producing property. So that makes them perfect if you are just looking for a place to live for the next few years. The second and cheaper option is walk-up buildings. Their prices are up to 15 percent lower than the ones with the elevator, which makes these places a great solution for younger people rather than seniors looking to downsize. Also, buildings that do not have amenities and management are another affordable option. So if you can live without a built-in gym or a roof patio, go for it.

Challenges of moving to a smaller starter flat

If you are moving from a house, be ready for downsizing that comes with living in a smaller space. In other words, you will be saying goodbye to all the benefits that you are used to. This is sure to induce stress in a lot of first-timers. So before you decide to take a leap, be sure you are mentally ready for a minimalistic lifestyle. And that means that you will have to get rid of most of your belongings and keep only the essential ones. Therefore, conquer stress on this important day of being a proud owner of your first home by decluttering.

Also, the biggest problem with one-bedroom apartments is that there is not enough storage space. Hence, you need to be inventive in finding new solutions. One of them is vertical storing ideas of using walls to their full potential. And if you cringe at the visual aspect of it, then there is nothing left for you to do but put some of your belongings in a storage unit.

Conclusion

Once you decide that you are ready for the independence that buying a starter apartment in NYC will provide, do not buckle under pressure. Sure, there are many challenges, and it is quite time-consuming trying to find the right one. Not to mention that affordable flats in NYC have become the "unicorns" of the real estate market. But with enough patience and perseverance, your dream home is just around the corner. So be sure you are ready and prepared for a high down payment and a minimal lifestyle. It is not a forever solution but a launching pad for yet unforeseen upgrades that life will bring. Call Immacolata Giocoli, Buyer specialist in N.Y.C and Long Island she is an Independant Broker at Tyler Vincent Real Estate Inc. She has been in the business of creating happy homes since 2002. 

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