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No, not always true anyone can purchase into a condo and rent it out at will.
Condo boards true do have mainly the right if first refusal to block a sale, and post fiscal/credit crisis many boards are beefing up their reserves in order to do just that. Buildings are beginning to realize the old "wild west" culture can actually hurt a building's value. Certain persons just do not want to live where "anyone" can move in or out.
Same goes for renting where some condo buildings are putting lids on how long and so forth that can to on as well. Again the "wild west" culture can harm a building. There have been a few infamous cases of prostitution being run out of UWS/Columbus Circle condos. This has prompted boards to start looking more closely at potential purchasers and clamp down upon renting.
Condo building can make themselves every bit as "restrictive" as certain co-ops. It all boils down to the board.
"Both co-ops and condos require board approval, hold regular board meetings and come with an ever-changing set of rules for living. Co-ops, however, tend to have a more tedious approval process. A co-op board can and will ask for the most intimate details—financial to familial. There will be a face-to-face interview, which may include pets, and applications can be denied for any reason. Condo boards, on the other hand, only have the right of first refusal, which means members can stop the sale by offering to buy the apartment on the same terms."
Sometimes buildings require an all-cash deal because they know that no bank will lend on a coop in that building. I am pretty sure that buildings with a low percentage of individual owners (= high percentage of sponsor owned rental units) are not attractive to mortgage banks.
So the seller of the unit will usually sell at a reduced price (vs other comp prices in the area) and require all cash.
I also know there are a bunch of buildings in Sunset Park, Brooklyn that do not (or did not) allow bank financing. I read that they were Finnish buildings and that the Finns didn't like debt. This also meant no mortgage on the building, so therefore very low maintenance fees. I guess the asking price for the unit would be balanced against requiring all cash (lower selling price) vs having a low maintenance (higher selling price). Finnish Co-ops in Sunset Park Brooklyn Coop
One big problem with buildings that require an all-cash purchase is that even if you have the money to buy all-cash, when you want to sell, you have to find another buyer who has that much cash available, and it would severely limit your pool of buyers.
Sometimes buildings require an all-cash deal because they know that no bank will lend on a coop in that building. I am pretty sure that buildings with a low percentage of individual owners (= high percentage of sponsor owned rental units) are not attractive to mortgage banks.
So the seller of the unit will usually sell at a reduced price (vs other comp prices in the area) and require all cash.
I also know there are a bunch of buildings in Sunset Park, Brooklyn that do not (or did not) allow bank financing. I read that they were Finnish buildings and that the Finns didn't like debt. This also meant no mortgage on the building, so therefore very low maintenance fees. I guess the asking price for the unit would be balanced against requiring all cash (lower selling price) vs having a low maintenance (higher selling price). Finnish Co-ops in Sunset Park Brooklyn Coop
One big problem with buildings that require an all-cash purchase is that even if you have the money to buy all-cash, when you want to sell, you have to find another buyer who has that much cash available, and it would severely limit your pool of buyers.
Historically IIRC it could be difficult to find a bank that would give mortgages on co-op apartments in NYC. This was for many reasons but the main one being unlike say a single family home or even a condo the bank cannot get it's hands easily on the property in the case of default. All there is with co-ops are shares and those sorts of buildings can do things to make them worthless or at least lower their value. Many do not know that just because you purchase "shares" or a co-op at say an estate sale or foreclosure the board does NOT have to allow you to move in/approve.
Studio co-op apartments back in the day were usually horrible to find a mortgage for, you had to pay all cash. This could explain why so many were purchased for students, young adults or even daughters by families.
Yes, requiring all cash can be a problem for any building and not just whom many people might think. Lots of "big money" just does not want to tie up their funds in equity, that is owning shares (co-op) or even property (condo). They would much prefer to have a mortgage so the money can be put to use elsewhere. There is a new product for such persons; they pay cash for a property then the bank turns around and issues them a mortgage for full or much of the price. So in paper they paid cash, but in theory it is something else.
Sometimes buildings require an all-cash deal because they know that no bank will lend on a coop in that building. I am pretty sure that buildings with a low percentage of individual owners (= high percentage of sponsor owned rental units) are not attractive to mortgage banks.
So the seller of the unit will usually sell at a reduced price (vs other comp prices in the area) and require all cash.
I also know there are a bunch of buildings in Sunset Park, Brooklyn that do not (or did not) allow bank financing. I read that they were Finnish buildings and that the Finns didn't like debt. This also meant no mortgage on the building, so therefore very low maintenance fees. I guess the asking price for the unit would be balanced against requiring all cash (lower selling price) vs having a low maintenance (higher selling price). Finnish Co-ops in Sunset Park Brooklyn Coop
One big problem with buildings that require an all-cash purchase is that even if you have the money to buy all-cash, when you want to sell, you have to find another buyer who has that much cash available, and it would severely limit your pool of buyers.
When I was looking to buy , I came across a number of co op buildings in The Bronx that were actually built as coops in the 1920's and 1930's by Communists or by Communist leaning unions ,as opposed to buildings that were converted to co ops in the 1980's co op craze.All of them were all cash,no mortgages,no underlying mortgages buildings.It is a little harder to sell those apartments but they can be so much cheaper and the maintenances so much less that they do sell.They can be great deals if you have the cash.
It was very interesting to find buildings with that Communist history.Supposedly,The Bronx was a hot bed of Communists at the time.
"Both co-ops and condos require board approval, hold regular board meetings and come with an ever-changing set of rules for living. Co-ops, however, tend to have a more tedious approval process. A co-op board can and will ask for the most intimate details—financial to familial. There will be a face-to-face interview, which may include pets, and applications can be denied for any reason. Condo boards, on the other hand, only have the right of first refusal, which means members can stop the sale by offering to buy the apartment on the same terms."
Understand the differences well, and am here to tell you buying into a condo is not always easy or simply a matter of "first refusal". To the later again all a building has to do is build reserves to purchase one or more apartments and that is that. Funds can be replenished from sale of said units.
Again many condo boards are aware of how the perceived "anyone can live here" or wild west mentality can affect prices. With more and more product coming on line and yet more in the pipelines buildings are going to need ways to keep prices up.
Understand the differences well, and am here to tell you buying into a condo is not always easy or simply a matter of "first refusal". To the later again all a building has to do is build reserves to purchase one or more apartments and that is that. Funds can be replenished from sale of said units.
Again many condo boards are aware of how the perceived "anyone can live here" or wild west mentality can affect prices. With more and more product coming on line and yet more in the pipelines buildings are going to need ways to keep prices up.
So then condos are trying to be like co-ops now. Whats the point when you have to go through the same rigamole as a co-op and the co-ops are priced less. People will flock to what's more stable.
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"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
So then condos are trying to be like co-ops now. Whats the point when you have to go through the same rigamole as a co-op and the co-ops are priced less. People will flock to what's more stable.
Like I said, value in particular resale.
Know plenty of condo owners and have heard about others that do daily if not weekly checks of the current value of their apartment/building. These are the persons who get onto boards and or are pressing for every sort of amenity that "luxury" or other buildings in the area have just so theirs won't be seen as lacking. Parents in the building want a play space, but others with resale on their minds think a doggy gym/spa will bring more bang for the buck. Doormen and building staff? Dress them up in white gloves and livery. Potential purchaser wants to rent six months out of the year because they live out of town? Sorry, but no, large numbers of renters hurt the value of building.
And so it goes.
Believe it or not condos face some the same pressures even on the high end as co-ops. Case in point people have moved from the condo on East 80th Street and Third just one block south to 200 East 79th. With so much product coming online there is really only a shortage in some parts of the condo market such as "family sized" apartments.
Then again you have the unrelenting pressure of persons seeking out brownstone buildings from private homes. Up and down Yorkville, LES, Harlem and other areas you never would have imagined people are buying "homes". Then there is Brooklyn and Queens.
The beauty of a NYC condo is in theory anyone can move into the building. The bad thing for some is that anyone can move into the building. *LOL*
Studio apartment about 450 sq ft including terrace. 358.74 including a 30 dollar assessment. In riverdale nyc. 1961 two building co-op. Doorman, electricity, central air included in maintenance. Outdoor pool, gym and parking are extra. It is a coop so taxes are included.
Let's compare how much we currently pay each month in maintenance. Be sure to include the size of your apartment, if utilities such as gas and electricity are included, any special building amenities like a doorman or parking garage, and what neighborhood you're in. I'll go first: junior 4, gas and electric included, no amenities, Forest Hills, $1,100 monthly maintenance.
whether a building has a flip tax is a big factor here as well.
many buildings today have lower maintance charges but bite you out the door.
950 sq ft jr 4 in a prewar building in Pelham Parkway.Maintenance is is $605/mo and includes heat and hot water and taxes. No doormen or anything extra.We have a resident super,a full time handyman and a full time porter and there is a laundry in the building.I pay $50/ yr for a storage area in the basement.
I first wowed at the price price you pay, and then realized that you lived in the Bronx, which justifies for the cost.
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