The True Cost of Buying Property in New York City

Buying a home in New York City isn’t just about saving for a down payment. Whether you’re looking at a co-op, condo, single-family home, or multifamily property, there are multiple costs to plan for. In this guide, we break down all the expenses so you know exactly how much money you’ll need upfront and monthly.

1. Your Down Payment

The first and most obvious cost is your down payment. Here’s what to expect:

Co-ops: Usually require 10–20%

Condos: Some require 25% or more

FHA-approved mortgages: Can allow as little as 3.5% down

Keep in mind: Purchasing a property with less than 20% down often comes with mortgage insurance, which you’ll pay monthly.

2. Closing Costs

Closing costs in NYC typically range from 2% to 5% of the purchase price. These include:

Attorney fees: $1,000–$3,500

Title insurance: $500–$3,000+

Appraisal and bank fees (varies)

Mansion tax: 1%–3.9% for properties over $1 million

These costs add up quickly, so it’s important to budget carefully.

3. Condo and Co-op Specific Costs

If you’re buying a co-op or condo, there are some extra expenses to consider:

Board application fees – non-refundable if not approved

Moving deposits

Maintenance escrow – sometimes a full year is required upfront

These costs are on top of your down payment and closing costs, so factor them in.

4. Home Inspections

Inspections are crucial because you want to know exactly what issues a property might have before buying.

Typical inspection cost: $300–$700

5. Mortgage Recording Tax

Condo or house: 1.8%–1.925% of purchase price, paid at closing

Co-op: No mortgage tax

6. Extra Costs You Might Not Expect

When buying a home, always plan for additional expenses like:

Repairs or renovations

Painting or upgrading a kitchen/bathroom

Miscellaneous maintenance

Having extra cash on hand ensures you won’t be caught off guard.

7. Monthly Payments

Knowing your upfront costs isn’t enough — you also need to be comfortable with monthly mortgage payments. Factor in:

Loan principal and interest

Property taxes

Maintenance or HOA fees

Mortgage insurance (if applicable)