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How to buy a second home in NYC

One of the greatest cities in the world, New York! With an estimated 2019 population of 8,336,817, it is the most densely populated major city in the United States. Having a real estate in New York is a status symbol, but considering its prices could be quite challenging. An option you should consider is to buy a second home in NYC, so-called “pied-à-Terre”. Here are the things that you should consider when buying a second home in NYC!


In French, it means “foot on the ground“. It’s an apartment, either located in a condo or co­op building. The residents only live in part-time ­­maybe for weekends, business trips, or the occasional vacation in New York.

This type of apartment categorizes as a “non­e primary residence” for the owner. It should be at least 60 miles away from your primary residence. A pied-à-Terre is not a legal definition for a type of apartment. Purchasing this type of apartment comes with some extra consideration and hurdles for the buyer.

There are two markets, the luxuries ones and on the other hand the much more affordable. The luxuries are mostly in Central Manhattan, Upper East Side, Central Park South, or Soho. On the other market, they tend to be small one-bedroom apartments or studios with more reasonable prices. With those, you are automatically sacrificing space. But for buying a second home in NYC where you are going to be on weekends it is worth it. Be sure to check out Long Island city movers.

living room
A pied-à-Terre is categorized as a “non­e primary residence”.

Condo vs Co-op

If you don’t have financial issues the condo should be the choice to buy as a second home in NYC!

  • Condos will almost never have primary residence requirements or limitations if renting your property.
  • Co-ops are designed for primary, owner-occupancy use and come with house rules and sublet policies which will not come in favor if you wish to rent out that property.
  • Much co-op house rules require a minimum number of years of primary occupancy before a shareholder is even allowed to apply to sublet their apartment.
  • Co-ops do not allow pied-à-Terre which means that even if you are only going to be in NYC for the weekend you cannot purchase it. 
  • Some co-ops won’t allow you to sublet your apartment at all, even if you have to move due to a job change. If you need to move, your only recourse will be to sell the apartment and incur hefty co-op seller closing costs.
  • The only benefit when you buy a second home in NYC as co-op is general in pricing. It is 10% to 40% cheaper than condos of comparable size and quality.

Financing when you buy a second home in NYC

One of the biggest differences, when you buy a second home in NYC, is financing. New York has many financing programs and laws when it comes to real estate. There are many amenities and programs regarding renting and homeownership for families who are financially struggling. People who are about to buy a primary residence have benefited from the above.

If you want to buy a second home in NYC, you must be able to afford it. And without any help from typical government programs. Also, keep in mind that mortgage rates are going to be higher than for your primary residence.

Be prepared for a lot of paperwork.

Restrictions you will face if you buy a second home in NYC

Be prepared for a lot of work and hassle! Many lenders won’t offer a loan for a pied-à-Terre. However, it is not impossible. Here are some common regulations that you may run into.

  • Distance – Many lenders will only finance your home or an apartment if it’s minimum 60 miles away from your primary residence.
  • High income – It is an important part of approvals from most lenders.
  • Down payment – You should consider a down payment between 10% and 20% for your second home.
  • Good credit and renting behavior – Secondary homes will often require a credit score of 700 or above. Also, have in mind that your renting behavior will be checked as well.

The cost will vary depending on what you want to use your property for. Vacation home or rental income property. When you buy a second home in NYC you should consider moving help NYC.


Secondary home taxes are usually much lower than for your primary residence. But you still have to pay for them! However, if you spend more than 183 days in NYC you will have to pay NYC taxes! You should consider consulting a tax specialist for some advice.

You can write off mortgage interest deductions on your secondary homes, by saving on taxes by April and paying off your primary residence. That can be an excellent way to lower what you owe.

If the taxes for your primary residence is less than $10,000 per year, you can write off that extra property tax. Regardless of whether it’s your primary or secondary home, according to the current laws.

Taxes change completely if you buy a second home in NYC as an investment property. This can benefit you as it is an income-producing property. It works like a business in a certain way. You can actually deduct expenses related to the upkeep and management of the building, as well as maintenance charges, mortgage interest, and depreciation. The IRS allows you to depreciate the value fully over the course of 27.5 years. So keep that in mind. If you rent your property via Airbnb or Booking, you have to report your income to the IRS. On the other hand, you will be able to deduct expenses that are related to the rental.

If you want to buy a second home in NYC, you must be able to afford it.

Final advice

Having a second home can be a great thing, but it’s still a lot of responsibility and at the same time challenging. If you aren’t sure whether to buy a second home in NYC is a good idea, it may be best to consult your tax attorney. Check every single detail in every aspect, and also take a look at how your business may be impacted by the costs. After all, you should invest in something you can actually enjoy.

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