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Old 12-02-2014, 11:57 AM
 
1,099 posts, read 1,062,709 times
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They like to look at expenses to income ratio....where housing should not be greater than 30% of income.

Quote:
Originally Posted by mrk321 View Post
I think you underestimate how thorough a co-op board can be in requesting your financial information. Even if you don't tell them that your parents fronted you the down payment, they may turn you down if you don't have enough assets in your name once the down payment is handed over. They usually like to know that if they have a special assessment come up shortly after you buy, that you'll still have enough to cover it.

Also, I'd check on the flip tax. In my deal, it was a certain amount (less than a dollar) but multiplied by how many shares the apartment was worth. It didn't matter to me, though, as the seller was responsible for paying it, not the buyer. They also set the amount of a down payment I needed to have (30%), so make sure you inquire into this as well.

All in all, if you want to control your expenses for the next potential 8 years that you may live here, a co-op is a good way to go. You'll be able to cap your costs to an extent and also receive a tax write off on your interest plus a portion of your maintenance. Also - Queens is starting to make a lot of buzz for more affordable units. You might want to look there.
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Old 12-05-2014, 09:41 AM
 
29 posts, read 32,733 times
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Quote:
Originally Posted by nyccs View Post
Or you can look for sponsor (no board approval) coop units, a lot less rules for buying and selling and I am even allowed to sublet. Although there are not that many out there, they exist. I bought a sponsor unit as my expense to income ratio would disqualify me from most coop boards.

Condos are nearly 2x as much as coops. If you have the down payment needed for that then condos are better. But if you had to rent or get a coop, id get a coop as you are still building equity whereas rent is basically paying for someone else's mortgage. Pay attention to coop financial, maintenance and assessment fee histories before you commit.
you are not allowed to sublet a coop that was a sponsor unit , known as unsold shares if you or a family member has occupied it.

read the nys laws on unsold shares and what qualifies as unsold shares, those are the only units that can be rented without the boards approval, as soon as the owner occupied it it loses its status as unsold shares and becomes owner occupied,
your board may be being misled by the sponsor/managing company, which is common, the managing propagates fraud on unsuspecting board members.
post the question on the habitat magazine, an on-line coop magazine or cooperator , both nyc area coop /condo monthly mags where laws are discussed.
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Old 12-05-2014, 09:56 AM
 
29 posts, read 32,733 times
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since NYS refuses to do anything about fraudulent info put out by boards and management companies, there is no way to tell if the info you are obtaining is correct. The coop i live in has been informing buyers that it was 90% owner occupied for 15 years, reality it was under 60%, i could easily figure this out, however the DA would take no action or was even interested in this fraud. This type of fraud is widespread.
Also there is no background check on board members, they could be felons and convicted ******. it is easy for a management company/the old sponsor, to put a board in place by falsifying elections, it happened it this building.
they even faked a election rule change they said came from the state, we were too naive, and with no lawyers in the building we were duped.
AS long as NYS allows this to continue , your have the possibility of buying a ponzi scheme.
where are the coop shareholder lawyers that only work for the shareholders. there are none as far as i know.
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Old 12-05-2014, 09:59 AM
 
29 posts, read 32,733 times
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Quote:
Originally Posted by nyccs View Post
Or you can look for sponsor (no board approval) coop units, a lot less rules for buying and selling and I am even allowed to sublet. Although there are not that many out there, they exist. I bought a sponsor unit as my expense to income ratio would disqualify me from most coop boards.

Condos are nearly 2x as much as coops. If you have the down payment needed for that then condos are better. But if you had to rent or get a coop, id get a coop as you are still building equity whereas rent is basically paying for someone else's mortgage. Pay attention to coop financial, maintenance and assessment fee histories before you commit.
you are not allowed to sublet a coop without the boards approval, if you or a family member has occupied it. once you or a family member has occupied a sponsor unit , it is no longer unsold shares

read the nys laws on unsold shares and what qualifies as unsold shares, those are the only units that can be rented without the boards approval, as soon as the owner occupied it it loses its status as unsold shares and becomes owner occupied,
your board may be being misled by the sponsor/managing company, which is common, the managing propagates fraud on unsuspecting board members.
post the question on the habitat magazine, an on-line coop magazine or cooperator , both nyc area coop /condo monthly mags where laws are discussed.
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Old 12-05-2014, 10:32 AM
 
64,515 posts, read 66,075,955 times
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you are correct , once the sponsor no longer is the owner of the shares they are subject to the same rules eveyone else is. we are the sponsers of our unsold apartments that have the origonal rent stabilized tenants in them. we require no approvals but anyone we sell to is bound by the regular rules
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Old 12-05-2014, 10:47 AM
 
Location: Beautiful Pelham Parkway,The Bronx
8,389 posts, read 19,619,570 times
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Quote:
Originally Posted by mathjak107 View Post
you are correct , once the sponsor no longer is the owner of the shares they are subject to the same rules eveyone else is. we are the sponsers of our unsold apartments that have the origonal rent stabilized tenants in them. we require no approvals but anyone we sell to is bound by the regular rules
Isn't there also a thing( or person) called a "sponsor designee".. someone other than the original sponsor,who bought the unit from the original sponsor but never occupied the unit and still gets the rights of a sponsor to rent or sell the unit without board approval ?
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Old 12-05-2014, 10:52 AM
 
1,099 posts, read 1,062,709 times
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Quote:
Originally Posted by greystonestation View Post
you are not allowed to sublet a coop without the boards approval, if you or a family member has occupied it. once you or a family member has occupied a sponsor unit , it is no longer unsold shares

read the nys laws on unsold shares and what qualifies as unsold shares, those are the only units that can be rented without the boards approval, as soon as the owner occupied it it loses its status as unsold shares and becomes owner occupied,
your board may be being misled by the sponsor/managing company, which is common, the managing propagates fraud on unsuspecting board members.
post the question on the habitat magazine, an on-line coop magazine or cooperator , both nyc area coop /condo monthly mags where laws are discussed.
My building allows it....that was part of the contract I signed and small pets are also allowed.
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Old 12-05-2014, 05:05 PM
 
4,783 posts, read 4,663,039 times
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Quote:
Originally Posted by snowboardpunk View Post
Thanks for the tips! But if my cousin does leave I'm allowed to have a roommate as long as I still live there. I mean I know I haven't gone through the numbers completely yet but if my cousin moves out and I still get rent for about half my mortgage it would be the same. I would just have to find a coop cheap enough to do that. I do prefer to stay in manhattan or brooklyn but houses seem to be scarce in brooklyn or am I just not looking in the right places?

Also it's not like my parents are completey supporting me. I still make 50-60k a year which is under the 120% level of income and my parents are going to give me the downpayment in cash. So it's not like the board will know my parents are helping me out.

I'm not sure how long I'm gonna stay in nyc but I feel like it's going to be atleast another 8 years cuz of school and since I'm in design nyc is where I should stay for a job.

Also where do you guys search for houses in nyc? I'm using streeteasy and houses just seem so scarce
You don't sound too sure of your situation so I probably wouldn't do it if I were you.

Is your mortgage + maintenance going to beat out renting?

Do you have enough cash reserves for at least a year of mortgage/maintenance payments?

I bought my coop about two years ago and part of me wishes I didn't. And that's with buying it 40K-70K less than most people buy their units for in my place. (Needs work.)
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Old 12-05-2014, 05:39 PM
 
64,515 posts, read 66,075,955 times
Reputation: 42970
Quote:
Originally Posted by bluedog2 View Post
Isn't there also a thing( or person) called a "sponsor designee"….. someone other than the original sponsor,who bought the unit from the original sponsor but never occupied the unit and still gets the rights of a sponsor to rent or sell the unit without board approval ?
there are buildings that can have sponser designees who are investors that share sponsership or take over sponsership with the actual sponser. i am not sure if it is a bylaw thing or co-op law though. never had to know much about it but in any case the designee can not live in the apartment.

Last edited by mathjak107; 12-05-2014 at 05:48 PM..
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