By Alexander Garrett
It's been called the City that Never Sleeps, the Capital of the World, and of course, The Big Apple, but as well as being one of the most exciting and dynamic cities in the world, New York probably has a greater obsession with residential property than just about anywhere else on the planet.
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The hefty New York Times Real Estate section is the bane of newspaper delivery boys and an institution in its own right, detailing the ups and downs of individual districts, and the travails of those seeking to gain a foothold on the city's notoriously slippery property ladder. There are few places where so many people want to live, whether that be for a transatlantic job posting, or simply to immerse themselves in the rich cultural life of the city.
But be prepared: this is also one of the most expensive cities in the world to buy property, and even in the current financial crisis, which started from New York as its virtual epicenter, prices have fallen far less quickly than the pound has declined against the dollar in the last 12 months. Figures from the Case-Shiller survey in March 2009 showed that prices in New York had fallen 9.6% year-on-year, but remained 81% higher than in January 2000, giving New York the highest sustained increase among America's top 20 cities over that period.
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Getting there
New York has three main airports: John F Kennedy and LaGuardia, both in Queens, and Newark in New Jersey. JFK is mainly international, while LaGuardia is mainly domestic, and Newark handles both. Getting into the centre of Manhattan from each is something of a lottery, depending on traffic; express buses (or limos) are generally a better option than the subway.
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Visa/residency requirements
Getting into the US for a holiday has become tougher since 9/11, let alone obtaining permission to stay and work for longer periods. If you're staying for less than 90 days at a time, you can enter without a visa under the Visa Waiver programme; however, you can't extend your stay.
A variety of non-immigrant visas is available for those who want to stay temporarily in the US for work, study or other purposes; the rules, available from the US Embassy, are very strict and should be studied in detail. There is a wide range of non-immigrant visas available to cater for everybody from students or au pairs to business people and journalists.
The length of time you can stay depends on the nature of your application; for students it may be for the duration of your studies, which could be several years. What's clear is that, unlike many other countries where you could choose to live, renewing your visa in the US is much more than a formality.
If you want to live in the US permanently, you need an immigrant visa, which generally means qualifying either through marriage or through employment. And to qualify via employment generally means that you must demonstrate exceptional talent or skills. After five years of residency, it does entitle you to apply for citizenship.
For those who are looking to own a second home, the usual practice is to visit as tourists, but there's a risk that you won't be allowed back in if you've already spent 90 days in the country in the current year.
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In the US, (unlike the UK) it is usual for both the buyer and seller to appoint their own agent. Always go to a licensed realtor. Buyers' agents have access to a computer database of all the properties available in the area, and will help you locate suitable property, then arrange viewings and negotiate on your behalf. You don't pay commission directly to them as they split the seller's commission with the selling agent.
More than half of New Yorkers – an estimated 65% – rent property rather than own it, and if you're going to be in the city for two years or less, the costs of moving and purchase mean that rental is almost certainly a more cost-effective option.
If you do decide to buy, and you're after an apartment in Manhattan, there are two main options: a condo or a co-op. A condominium is a conventional form of ownership, in which the owners within the building each own their individual property, but share some common costs and facilities. A co-op is a residential property that is owned and managed by a company; instead of buying an apartment, you buy shares in the company which give you the exclusive right to live in a given unit, and to sell on the shares in due course.
Many careful comparisons have been made in the past; the general consensus is that co-ops have the advantage for people who require a degree of exclusivity, since the existing members can effectively veto new members (and even their pets); but otherwise condominiums offer a lower cost structure and a more transparent form of ownership.
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Different locations
The next question is: where to buy? The basic choice you have is between Manhattan and one of the four outlying boroughs: The Bronx, Brooklyn, Queens and Staten Island. Manhattan has the highest prices and the quintessential New York lifestyle, while the other boroughs offer more space for your money and a less densely packed urban setting.
In Manhattan, New Yorkers are highly conscious of the ever-shifting pecking order between districts, and fashion is an important factor. Uptown is generally regarded as the area above 59th Street, while Downtown is below 14th Street and Midtown is the area in between. Younger and more arty buyers have traditionally tended to focus on the Downtown areas such as Tribeca (Triangle below Canal St where Robert De Niro still has a home), SoHo, The Village, Chelsea and NoLiTa (North of Little Italy), which spawned the loft movement.
Midtown – including both sides of Central Park – has always been the richest slice of Manhattan with its opulent apartment buildings. Anything with a view of the park will command a hefty premium. Uptown includes Harlem, historically one of the poorest districts, now undergoing huge regeneration, with the greatest concentration of new residential developments currently. Former President Bill Clinton has set up his office there. Also Uptown is Morningside Heights, home to Columbia University, where many students and academics live in the pre-war co-ops.
Each of the other boroughs has its more and less attractive sides. The Bronx has the poorest Congressional District in the entire US, the 16th, but also enclaves of wealth such as Riverdale and Country Club. Brooklyn has a famously diverse population, with large communities of African Americans, Russians, orthodox Jews and Hispanics.
The outlying boroughs are the preferred option for many families, as you can buy a house with a garden without being in Donald Trump's league. Staten Island has the most open space – as well as the famous ferry.
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Types of property
As well as the two types of ownership outlined above, it's useful to understand the different types of property, not all familiar to British buyers, on offer in New York.
A single-family townhouse is probably the most expensive type of property you can buy in Manhattan; the 19th century Brownstones being the most famous exemplar. Expect to pay anything from $10m upwards in one of Manhattan's better neighbourhoods. A duplex is an apartment on two levels; a triplex on three. Lofts were invented in New York; large open plan accommodation converted from former industrial or warehouse buildings, usually with big windows and high ceilings.
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Living in New York
Climate
New York has what is described as a "humid continental" climate. Summers are swelteringly hot and humid, with temperatures reaching the low 30s Celsius; while winters frequently see snow, although temperatures seldom fall much below zero.
Lifestyle
Many aspects of the New York's lifestyle are already familiar to most people through TV and movies, from Sex and the City to Friends. It's fair to say that few cities can compete with New York for shopping, eating out, working, clubbing, visiting art galleries and museums, and a host of other human activities. The one thing you'll need in New York is friends – without them it can be a very lonely place.
Financial
It's not easy to establish yourself financially in the US – a great deal hangs on your credit history, which you can only establish once you have been living and working there for some time. To open a bank account you will usually be required to produce a driver's licence or some other form of state-issued identification, as well as a social security card and a utility bill. Some banks do offer non-resident accounts, with less stringent requirements, but you won't get access to credit.
Healthcare
Finally, it's worth mentioning healthcare, as this really is a very different situation from the UK. New York has outstanding hospitals and healthcare centres, but free healthcare is not generally available, and you will need to take out (expensive) healthcare insurance if you do not have an employer to provide it for you. Emergency treatment is available on a statutory basis at certain hospitals, regardless of ability to pay. But if you want to be assured of receiving good treatment, insurance is essential.
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Alexander Garrett is a freelance property writer who contributes regularly to The Observer and British Airways' Business Life.
The content provided in the Primelocation.com guides is for information only. In all cases, independent and professional advice should be sought before buying, selling, letting or renting property, or buying financial services products.