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Putting down the large down payment was a condition of moving into the co-op. They mandated it. I probably wouldn't have put down such a large amount if I didn't have to.
that is how some co-op board weed out the less than affluent prospective buyers. I've seen quite a handful of co-ops that require 50% cash down or even 100% all cash deals only.
I think one thing people are missing is not the mortgage that they have put down on their own apartment but the mortgage that the co-op carries. That factors into the monthly maintenance as well.
I think one thing people are missing is not the mortgage that they have put down on their own apartment but the mortgage that the co-op carries. That factors into the monthly maintenance as well.
the actual maint and building mortgage (the deductible portion) is generally around 50/50. I've never seen it any more than 60/40
Yeah but for this reason co-ops are usually lower in sale price...co-ops aren't for people who only plan to stay there for 5-7 years. IMO they're for if you have a family because then stability becomes a high priority on your list when it comes on where to live. In a condo, anybody can buy the unit out and rent it to anybody you want, then everybody in the building does it and then it feels like you're living in a rental building....who wants that...its very tough in most co-ops for the owners to rent out their units because they want to preserve the character of the building. I have 3 apartments on my floor where the shareholders have been there 30+ years; that's what I like. I feel like part of the community. However, different strokes for different folks.
If I were to live in a building in NYC, I would prefer it your way too for the same reason. For instance, I definitely would not like to live in a condo building where other owners were renting their apartments out as the equivalent of nightly hotel rooms. I would much rather have regulations against neighbors doing that in a co-op.
It depends on the condo building... you have to have a certain % of owner occupied units in order to get a loan..at least that's how it had to be when I sought out a mortgage. While yes, you can rent out units, condos do have a board that does some sort of regulation. They might not be as strict as co-ops, but to protect the overall financial stability of the building, there was to be some sort of control. Many of the renters in our building were long timers who never bought in during the conversion. A well managed condo won't become a rental building
I don't like co-ops because I find them to be ridiculously restrictive under the guise of "protecting your interests". As a homeowner, I honestly want to do whatever I want as long as I do not infringe on anyone else. If I want to rent out my unit, I should be able to. My housing preference is SFH ---->Condo----->Co-op.
It depends on the condo building... you have to have a certain % of owner occupied units in order to get a loan..at least that's how it had to be when I sought out a mortgage. While yes, you can rent out units, condos do have a board that does some sort of regulation. They might not be as strict as co-ops, but to protect the overall financial stability of the building, there was to be some sort of control. Many of the renters in our building were long timers who never bought in during the conversion. A well managed condo won't become a rental building
I don't like co-ops because I find them to be ridiculously restrictive under the guise of "protecting your interests". As a homeowner, I honestly want to do whatever I want as long as I do not infringe on anyone else. If I want to rent out my unit, I should be able to. My housing preference is SFH ---->Condo----->Co-op.
If you owned a SFH (sorry I don't know your situation) would you ever rent that out? Like I mentioned before, co-ops have less flexibility in certain areas, but they are more for people who's life situation is pretty much set in stone. The only way I'm every moving is if I upgrade to a 3 bedroom on my floor, or the floor above me if it becomes available. There are 3 bedroom units available in my building now, but I like living on a high floor.
I grew up in a condo, but they were set up like townhomes. Either way I was still shoveling snow and raking leaves as a kid. Now I don't have to, and if something is wrong in my apartment all I have to do is make a phone call, and I can do whatever renovations I want without hassle.
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that is how some co-op board weed out the less than affluent prospective buyers. I've seen quite a handful of co-ops that require 50% cash down or even 100% all cash deals only.
Requiring cash whole or major part of purchase also ensures persons are solvent enough to remain. Many persons purchase a home or whatever based upon credit (mortgage) which can and does fluctuate depending upon circumstances. When Lehman, Bear Sterns and other victims of the past fiscal upheavals vanished, so did many person's high paying jobs. No small number often found themselves with mortgages they could no longer service. That is something well run Co-Op boards do not like to hear.
It does not stop at one hundred or major percentage in cash purchase either. Those same sort of buildings for reasons mentioned above want to see or require several months of liquid assets that more than cover expenses. In other words if after purchasing and closing costs you are going to be strapped, then don't bother applying.
All this proved to work out very well for such co-op buildings. During the past fiscal/credit crisis by and large such buildings had few problems and values held or increased. OTOH many condos with very liberal or lose policies saw all sorts of problems as owners could no longer afford their apartments. In the aftermath many condos have tightened up fiscal and other requirements. Some are now just as stringent as co-ops.
Ugh. Co-ops suck. I'm glad that they're mostly found in NYC. Combining a mortgage (unless you put a LOT down) with a high maintenance isn't desirable to me. Also, I want to own my unit outright, not have shares of anything. I do know that in the city, you don't have much of a choice because co-op reigns king.
People do have choices and that is fueling the extraordinary run up in prices for brownstone and townhouse buildings all over Manhattan, along with pockets of Brooklyn and Queens.
Many persons have decided they do not or will not submit to living in a co-op nor do they want to live in a condo and are seeking out "homes" of their own.
For some a brownstone/townhouse that cost between one and two million even if it is in Brooklyn or Yorkville is a better deal than a multifamily building.
Yeah but for this reason co-ops are usually lower in sale price...co-ops aren't for people who only plan to stay there for 5-7 years. IMO they're for if you have a family because then stability becomes a high priority on your list when it comes on where to live. In a condo, anybody can buy the unit out and rent it to anybody you want, then everybody in the building does it and then it feels like you're living in a rental building....who wants that...its very tough in most co-ops for the owners to rent out their units because they want to preserve the character of the building. I have 3 apartments on my floor where the shareholders have been there 30+ years; that's what I like. I feel like part of the community. However, different strokes for different folks.
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.
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