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Old 05-23-2015, 12:56 PM
 
Location: Chicago
5,559 posts, read 3,473,286 times
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Quote:
Originally Posted by BBMW View Post
^
You mean if I sell my coop for four times what I paid for it (which in this market, I could), I don't get to keep the money?

In point of fact most ownership apartments in NYC are coops (in Manhattan 75%). So if you want to buy something (and especially not in the multi million dollar price range, that's a lot of you choice.
You are not buying property. You are purchasing the rights to live in a property. It is analogous to a 52 week timeshare. If you are permitted to sell these rights, and if you are able to sell these rights, you may or may not be able to make some profit. But the essential point is that you do not decide if you can sell, when you can sell, or to whom you can sell, because you own nothing. The Board, which is running the corporation, decides. This important point is what makes coops less desirable and why they command a much lower value on the real estate market - as do timeshares.
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Old 05-23-2015, 01:01 PM
 
Location: Chicago
5,559 posts, read 3,473,286 times
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Quote:
Originally Posted by mathjak107 View Post
as most here can tell you i have made sooooooooooo much money in co-ops . they are excellent as investments.
Unfortunately, since the shareholder has no control over the sale, it cannot be considered an investment. It is more analogous to being on subleasing in a tight market. It may or may not work out but that is up to the Board f which is on full control of the situation.
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Old 05-23-2015, 01:02 PM
 
64,542 posts, read 66,100,109 times
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that is not true at all. you own a stock in the corporation the same as when you own shares in any partnership.

those shares entitle you to a proprietary lease as a shareholder to live in an apartment.

each corporation is run differently . i owned shares to 9 apartments in a building over looking central park and have sold 7 of them , when i wanted , to who i wanted and had no issues at all from the board.

i have lived in co-ops through out my life and have sold those too with no issues. that isn't to say a co=op board can't give someone a hard time , by the same token an hoa can do that too where they have right of first refusal.

to say you own nothing is not true one bit. you own a partnership and that is what you own which includes the entire building.

i think most co-op owners here will tell you the same story about their experiences.
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Old 05-23-2015, 01:32 PM
 
Location: Chicago
5,559 posts, read 3,473,286 times
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Quote:
Originally Posted by mathjak107 View Post
that is not true at all. you own a stock in the corporation the same as when you own shares in any partnership.
This is true. It is equivalent to a partnership where the elected Board has the final say regarding the sale of shares to a new partne

Quote:
i owned shares to 9 apartments in a building over looking central park and have sold 7 of them , when i wanted , to who i wanted and had no issues at all from the board.
Unless you had some sort of exception coop structure, the Board had the final say. The law is very clear on this the reason being is that you own the rights to occupy, not the rights to sell. It is a limited shareholders contract which is often the way s partnerships and smaller corporations are structured.




Quote:
you own a partnership
More precisely, you are a limited partner with very limited rights, e.g. to occupy the premise, to vote for Board members


Quote:
i think most co-op owners here will tell you the same story about their experiences.
I have spoken to many coop owners as well as researched legal cases. It is as I state. One can decide if coop ownership is right for them as they wish. But the lower market value that the market has given to coops vs. single family homes and condos speaks to the general consensus.
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Old 05-23-2015, 01:45 PM
 
64,542 posts, read 66,100,109 times
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co-ops are cheaper because they are cheaper than private homes as well as your personal mortgage is only part of the deal. the rest of your equity is usually inclusive in the building mortgage.

as that mortgage gets paid down the equity shifts over to the buyer.

they were done that way for a reason.

in order to convert a building to co-op they needed a certain amount of insiders to buy. many were older
tenants who may have had a hard time qualifying for a mortgage or else they likely would be homeowners.


the structure let them stand a better chance of getting a personal mortgage since their bank wasn't on the hook for the entire cost. the buildings bank was holding a piece of that mortgage too.

i am not sure who you are talking about in general terms but everyone will have their own experience.

personally i would never buy another single family home and would only consider a co-op . we may buy one next year here in bay terrace since we are retiring.

that makes about 12 in my life time between living in them from time to time and investing in them the last 28 years.
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Old 05-23-2015, 01:50 PM
 
Location: Brooklyn, NY
122 posts, read 192,169 times
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Thanks everyone for the replies. I really appreciate it and I'm learning a lot! I guess I got confused when I looked at posting like the one in the link. It is a coop but it it includes a very high HOA fee, which I guess is actually a maintenance fee. It sounds like I might be better off renting if I can only afford a lower priced coop.

2270 Plumb 1st St APT 5D, Brooklyn, NY 11229 is For Sale | Zillow
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Old 05-23-2015, 01:57 PM
 
1,975 posts, read 1,235,642 times
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Quote:
Originally Posted by mathjak107 View Post
personally i would never buy another single family home and would only consider a co-op .
Is it because your getting too old to perform maintenance on the property? I can see how a old person would like a superintendent in the building for any repairs.
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Old 05-23-2015, 01:58 PM
 
64,542 posts, read 66,100,109 times
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How much of that maintaince is the mortgage on the building ? That apartment may have cost you 165k to buy or more if there was no mortgage outstanding.

The point is you need to add both halves together to find out the actual value of your apartment. Then you can judge what is high or low as far as maintaince.
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Old 05-23-2015, 02:00 PM
 
64,542 posts, read 66,100,109 times
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Quote:
Originally Posted by NYer23 View Post
Is it because your getting too old to perform maintenance on the property? I can see how a old person would like a superintendent in the building for any repairs.
I always hated home chores at any age. There are to many better things to do than care for brick and mortar. Not my idea of spending weekends.

I am not handy and never had any interest in learning.
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Old 05-23-2015, 02:01 PM
 
1,975 posts, read 1,235,642 times
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Quote:
Originally Posted by loss4words View Post
Thanks everyone for the replies. I really appreciate it and I'm learning a lot! I guess I got confused when I looked at posting like the one in the link. It is a coop but it it includes a very high HOA fee, which I guess is actually a maintenance fee. It sounds like I might be better off renting if I can only afford a lower priced coop.

2270 Plumb 1st St APT 5D, Brooklyn, NY 11229 is For Sale | Zillow
Zillow doesn't have a drop down bucket to list the maintenance fee in the facts section, the real estate agent listed it as HOA Fee. Most agents just list the maintenance fee in the description of the apartment and leave it blank in the facts section of the ad.

If your serious about buying any property in a co-op you need to request the co-op financial statements and see the condition of the place for yourself.
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