If you like lodging in your current apartment building but want bigger square footage, buying an adjacent unit can be a sensible solution. You gain space without needing to let go of everything you have grown to love about your living situation over the years. When combining units, you must pay close attention to layout and thoroughly map out other factors such as windows and wiring.
An NYC apartment renovation expert details the important things you need to consider before combining apartments.
If you already own a unit, your existing home equity will help you finance the required amount to purchase the second apartment. If you do not own your unit outright, you may still refinance to get the adjacent apartment, however, you will need to qualify for a larger mortgage loan. Keep in mind that you will likely face additional costs every step of the way.
Make sure to do sufficient research if you are planning to purchase an adjacent unit and pursue renovation in a co-op building. Not all co-ops permit combined units, while co-ops that do allow it often have specific rules to properly manage the process. Your renovation plans will also need to be approved by the co-op board.
Combining units in a co-op building means buying additional shares, and additional shares result in additional fees. The same thing rings true if you combine two condos. In terms of fees and taxes, the units will be treated as two separate properties.
If you combine two units, your taxes will definitely spike up, especially since it is no longer feasible to deduct state and local taxes. If you are combining two units because you plan to use the second space as an office, the IRS will permit you to claim a deduction of $5 per square foot up to a maximum of 300 square feet. Be sure to consult with a tax specialist before merging two apartments.
Knockout Renovation is a leading source of top-rated apartment remodeling solutions in New York. Our team is committed to crafting strong aesthetics and functionality for your home. Call us today at (212) 599-5060 or fill out this contact form to schedule your consultation. We serve Brooklyn in NYC as well as the nearby communities.
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