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Old 02-26-2008, 09:51 AM
 
127 posts, read 633,708 times
Reputation: 73

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Hi gang,

I'm currently renting in Astoria, but I've been toying with the idea of trying to buy into a co-op in Forest Hills when my lease is up. Purchase prices seem more reasonable there -- Craigslist shows 1BRs and even Jr4s in the $300K range, an amount which doesn't seem to get you anything in Astoria. Plus it just seems cleaner/nicer there, it's closer to my family, and I _think_ it should only add a few more minutes to my commute to lower Manhattan (which granted is already longer than I'd like, but oh well).

I'm just curious what it typically takes for a purchase like this. I'd be putting 20% down on a 30-year fixed-rate mortgage, but beyond that, I'm not sure what costs to expect up front -- people talk about closing costs, but I have no real inclination as to what those are or amount to. Also, although I understand it's probably highly variable, I'm curious about what a typical co-op's income requirement might be and what kind of savings they would expect you to have after the down payment/closing costs (to cover N months of maintenance costs, for instance).

I would appreciate any pointers or recommendations to relevant reference materials. Thanks!
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Old 02-26-2008, 11:11 AM
 
Location: Chicago, IL
190 posts, read 979,241 times
Reputation: 60
Quote:
Originally Posted by babadi View Post
Hi gang,

I'm currently renting in Astoria, but I've been toying with the idea of trying to buy into a co-op in Forest Hills when my lease is up. Purchase prices seem more reasonable there -- Craigslist shows 1BRs and even Jr4s in the $300K range, an amount which doesn't seem to get you anything in Astoria. Plus it just seems cleaner/nicer there, it's closer to my family, and I _think_ it should only add a few more minutes to my commute to lower Manhattan (which granted is already longer than I'd like, but oh well).

I'm just curious what it typically takes for a purchase like this. I'd be putting 20% down on a 30-year fixed-rate mortgage, but beyond that, I'm not sure what costs to expect up front -- people talk about closing costs, but I have no real inclination as to what those are or amount to. Also, although I understand it's probably highly variable, I'm curious about what a typical co-op's income requirement might be and what kind of savings they would expect you to have after the down payment/closing costs (to cover N months of maintenance costs, for instance).

I would appreciate any pointers or recommendations to relevant reference materials. Thanks!
Closing costs can vary, but are usually estimated to be about 1-2% of the purchase price for your home. These include the legal fees, document fees, loan origination, bank fees, and all that other stuff associated with purchasing a home and making it legal.

As for the money you have after the down payment and closing costs, you obviously can't have zero. It really depends on the building and the neighborhood, so it's hard to estimate. While I am familiar with Forest Hills, I'm unfamiliar with real estate there. Sorry. But the process of buying into a coop will require a review of you, your character, your financials, and all kinds of stuff that you may or may not want others to know. You'll need references, letters of recommendation, etc.

It's sort of like applying to college, but it's much more rigorous.

$300,000 for a 1 bedroom co-op in Forest Hills? Sounds kind of steep and way higher than average for that area. I think you can certainly find a better deal.

Perhaps others more familiar with purchasing in Forest Hills can chime in. Good luck and (an early) congratulations!
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Old 02-26-2008, 11:39 AM
 
12,340 posts, read 26,013,773 times
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Here's a link that might help you How to learn about buying a coop? « Queens Central Forums
It is a link both to a forum that discusses Forest Hills and nearby and the topic is about buying a coop. You should take a look at the book they mention - the Coop bible for NYC - the exact title is in the thread. There are other threads on the same forum about people buying apartments in that area and reccos for local brokers etc.

And I don't want to be accused of hyping my own neighborhood but have you thought about Jackson Heights as well? JH and Forest Hills are two very different neighborhoods, so if you like FH you should probably just go with it. But Jackson Heights is also on the express trains (E/F) and has a huge historic district and lots of amentities. I don't want to go on and on about it since that's not what you're here asking about, but if you are interested in more info, please ask. There's a map of the JH historic district here Jackson Heights (scroll all the way down) if you want to check it out.
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Old 02-26-2008, 12:40 PM
 
7,079 posts, read 37,844,738 times
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I've bought and sold three NYC co-ops, all in Manhattan.

Aside from the money you pay, the boards usually request a full financial disclosure (one building asked for a review by a CPA). The reason this is done is that, aside from the usual monthly costs, there are also assessments that may need to be done (if the entire building requires re-pointing or the usual 10 year inspection found something serious that needs remediation, or to cover an unexpected cost for something).

That, and, of course, the board interview.

DO READ the house rules carefully. If you break them you have only yourself to blame if/when you get fined. In my old building there were people who didn't read the house rules and continually violated them, then pleaded ignorance. The problem is that in every building you're asked to sign a statement that you have read and understand the house rules.
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Old 02-27-2008, 07:03 AM
 
127 posts, read 633,708 times
Reputation: 73
Thanks everybody for the information and links. I think I pretty much understand what has to happen, but I'm a bit puzzled about the timeline and order of events. How far in advance of needing to move do folks typically start looking for a mortgage and a property? I assume that the 2 or 3 weeks common in the rental market won't exactly cut it. Is a mortgage pre-approval a must before you start shopping?

Also, I understand that you have to do due diligence on the property, its financials, etc., but do you do this before you make the offer, or do you make the offer contingent upon a satisfactory outcome of that investigation? And does the board interview not happen until after the seller has actually accepted the offer?

Thanks again!
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Old 02-27-2008, 07:29 AM
 
7,079 posts, read 37,844,738 times
Reputation: 4088
You should have an attorney lined up to review the documentation of the building. You need to go to contract and give a check for the deposit (to be put in escrow) before the attorney is going to have access to the financials of the building.

It's best to be pre-approved. And it depends on how much you're putting into your mortgage. This varies with the building. Some buildings in NYC don't even permit mortgages or they'll specify that you need to hae 50% (or some other figure) in cash. Get this done WAY ahead of time.

How long it will take for the board to review your application varies with the building. If they seem to like you, you'll be asked for an interview. If they don't you won't even get to the interview stage. But this is where a really good agent comes in, because they KNOW the kind of board each building has and will likely steer you to a building where you're likely to be successful.
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Old 02-27-2008, 08:45 AM
 
12,340 posts, read 26,013,773 times
Reputation: 10350
Neighborhood Housing Services has homebuyer education in NYC Homebuyer Education
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Old 02-29-2008, 09:18 AM
 
127 posts, read 633,708 times
Reputation: 73
Thanks guys. I'll keep it all in mind.
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Old 03-11-2008, 05:10 PM
 
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Default Coop in Queens

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Last edited by Viralmd; 03-11-2008 at 05:31 PM..
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