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I have about $20k down and I make about $50k a year and I'm looking to buy 1 instead of keep on renting. I'm looking for a 1 bedroom as I'm single with no kids.
I saw on MLSLI.com that they start from $100k to $150k or more....
My question is how does it really work? is it like buying a house where I can take out a 15 year or 30 year mortgage?
I know about the maintenance fees every month, property taxes and property insurance are included in that right? Not mortgage right?
If say the maintenance fee is $600-700 a month, how much would my mortgage be?? (say i'm putting 20k down and the condo is $100k) I'm thinking I can pay around $1000 a month total for everything. Any other fees or payments other than maintenance fee and mortgage?
I think you are confusing cooperatives with condos. Condominiums are fee simple real estate like owning a house. There is usually a maintenance fee that covers insurance for the common areas and outside maintenance. That might be an average of $200-$300 per month, depending on the development. It is not tax deductible. Property taxes are in addition to that and the condo owner pays them directly like a single family homeowner. In a co-op, the maintenance fee includes the property tax and therefore, part of your co-op maintenance fee is tax deductible. Whether you own a condo or a co-op, your mortgage has absolutely nothiing to do with the complex's maintenance fee. It would be the same as if you bought a house. This is basic real estate 101 and I suggest you read a little more about it before considering a purchase.
I think you are confusing cooperatives with condos. Condominiums are fee simple real estate like owning a house. There is usually a maintenance fee that covers insurance for the common areas and outside maintenance. That might be an average of $200-$300 per month, depending on the development. It is not tax deductible. Property taxes are in addition to that and the condo owner pays them directly like a single family homeowner. In a co-op, the maintenance fee includes the property tax and therefore, part of your co-op maintenance fee is tax deductible. Whether you own a condo or a co-op, your mortgage has absolutely nothiing to do with the complex's maintenance fee. It would be the same as if you bought a house. This is basic real estate 101 and I suggest you read a little more about it before considering a purchase.
Thanks. Yeah I'm confused. Right now I'm to the point where I just want to get a place that I can call my own. Obviously I can't afford a house.
co-ops have a major advantage that can be the deal maker ,its far easier to get a co-op mortgage based on your income . the board may reject you but the bank may accept you easier.
the whole reason co-ops came about was because they were the landlords light at the end of the tunnel when they got suckered into going along with rent stabilization.
the problem was to get a non evicting plan going you needed to get a certain amount of insiders to buy.
since many insiders had low to moderate incomes, getting them to qualify for a mortgage could be tough.
with a condo an apartment may sell for 250k as an example.
you would put your down payment down and get a mortgage for the rest.
a co-op is different. the building has its own mortage which is paid through your maintance and you only need to take a personal mortgage for the remaining difference.
as an example your personal mortgage may be 150k and the building holds the rest.
since the bank only has to go out on a limp with you for 150k and not 250k its easier to qualify. the sponser and his bank are responsible for the building side of the mortgage so your bank doesnt really car to much about that side, only what they are loaning you.
there are other differences too where condos have the edge. things like liens work differently .
Last edited by mathjak107; 01-01-2012 at 06:25 AM..
I am in a condo right now. Its a 1 bedroom that I got for $150k a year. I am paying $500 a month for a mortgage and about $320 a month in maintanance fees.
I got a regular mortgage for my condo . Homeowners insurance is cheaper since they only cover the inside of the condo. The outside portions like the roof are covered by the developments insurance.
Condos are a great way to have your own place on LI and be able to afford to live here.
MY taxes arre included in my mortgage payments. Infact in the development I live in our taxes were grieved and actually lowered. IF you have anymore questions dont be afraid to ask.
I am allowed to do anything I want to the inside of the unit. IF I touch the outside I have to go through the HOA for approval. They are pretty good though.
There are many threads on CD regarding HOA, please read them as they can be tricky. It is well worth your time to hire someone to take a good look at their books to determine how stable they are as well any "special" assessments they are expecting.
Each HOA has its own history so before you sign on any dotted line, take the time to get really know the history of that HOA, their policies and financial stability. For a young person starting out it might be a good place to start, but only if you do your reseach first.
Best of luck to you and glad you are financially doing well.
one thing you have to becareful of in hoa's and condos. we only just found this out.
we have a vacation home in an hoa and kids bring their atv's in and ride on the property. the development has its own volunteer civilian patrol .
the question was if they chase a kid and something happens and a law suite awards more money than the limits on the hoa policy then what ?
answer: we are all personally liable and the kicker is home owners insurance and liability umbrellas wont cover it.
they will only cover events by you, your household members and your pets.
i called geico and they confirmed they would not cover a suite like that.
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