What Are the Monthly Costs Beyond the Mortgage?

In addition to the mortgage, buyers should budget for ongoing monthly expenses, primarily common charges, property taxes, and homeowners insurance. These costs vary depending on the property type and location.

Common Charges

For condos, common charges typically cover maintenance of common areas, building insurance, staff salaries (e.g., doorman), and building reserves. In New York, they usually range from $1.50–$3.50 per square foot, though luxury or high-amenity buildings may reach $4–$5+ per square foot. Fees can increase over time due to operating costs or major capital projects.

Property Taxes

Property taxes vary significantly by property type and location (e.g., 421a tax abatement, condo tax abatement, school district differences).

• Properties with tax abatements pay lower taxes.

• Without abatements, a 1-bedroom condo in NYC may pay approximately $6,000–$12,000 per year.

• Larger or luxury properties will typically pay more.

Long Island property taxes are generally higher because:

• School districts account for a large portion of taxes.

• Local services such as police and fire departments are separately funded.

• Tax assessments vary by county and municipality.

On average, Long Island property taxes are around 1.7%–2.5% of property value. For example:

• A $700,000 home may pay approximately $12,000–$18,000 per year.

• In higher-end areas (e.g., Great Neck, Manhasset, Roslyn), annual property taxes can exceed $20,000–$35,000.

Insurance Costs

Condo: Since building insurance is typically covered by the HOA, buyers only need interior homeowner’s insurance, usually about $20–$50 per month.

Single-Family Home / Townhouse: Buyers must carry full property insurance. Annual premiums generally range from $800–$1,500, but can be higher in coastal or high-risk areas (e.g., flood zones), sometimes reaching $3,000+ per year.

When buying in New York, it’s important to consider not just the purchase price, but the total monthly carrying cost to make a well-informed decision.

How Do Buyers Pay Property Taxes?

Buyers can pay property taxes through the following website:https://www.nyc.gov/paypropertytax

1. Confirm Payment Method (With or Without Escrow)

In New York, property taxes are typically paid quarterly. If you finance your purchase, lenders usually require an escrow account, collecting a portion of property taxes and insurance with each monthly payment and paying them on your behalf. If you purchase in cash without escrow, you are responsible for paying the taxes directly.

2. Understand Billing Cycle & First-Year Prepayment

Property tax bills are generally issued twice a year. If using escrow, the lender may collect several months of taxes upfront at closing as an initial reserve. This amount is later reflected in your property tax account.

3. Pay on Time

After closing, you can register and check your property tax account using your Block & Lot (BBL) number. Property taxes are billed periodically, and owners should monitor due dates and make payments online or by mail to avoid penalties.

4. Annual Review & Payment Adjustments

After an escrow account is established, lenders typically conduct an annual review. Based on the prior year’s actual property tax and insurance costs, they may adjust the monthly escrow amount. If there is no escrow, homeowners are responsible for paying taxes directly and on time.

Late property tax payments may result in penalties and interest. If unpaid, a tax lien may be filed against the property, and in severe cases, it could lead to a tax foreclosure sale.

ACRE assists buyers throughout the home purchase and closing process by helping them understand escrow setup, payment adjustments, and financial planning timelines. By clarifying key milestones and cost expectations, we help reduce uncertainty during the transaction.