coop questions (Yonkers, Newburgh, Suffern: for sale, real estate, apartment)

[bxlefty23]

I have a few questions for those that own coops:
1) How much higher an interest rates are mortgages for coops compares to buying a regular home?
2)How often and how much do typical maintanance fees go up? Is this something that can vary widely or is it fairly standard?
3)I see that some coops do not include gas or hot water in the maintance fees (but the include heat) How much would these things cost on average for an apartment for 1 person?
4) One of the coops I looked at is in a building in which 3 coops are for sale.I like the neighborhood and the building looks nice, but is this usually an indication of a declining neighborhood/bad building to live in (if it matter I am looking at 385 mclean ave in yonkes)?

Thanks

[aka_mouse]

When I first read this I thought you were talking about chicken coops... or something.


Co-ops are pretty much a NYC thing, and you in the wrong subforum.

[joeymarine]

Originally Posted by aka_mouse

When I first read this I thought you were talking about chicken coops... or something.


Co-ops are pretty much a NYC thing, and you in the wrong subforum.

Co-ops are not just a City thing. We have Co-ops in Newburgh, Suffern, and all over in Orange, Rockland, and Westchester. Granted co-ops are much more common place in the City, you can still find them elsewhere throughout the state and country.

Now for the OP's questions...

1-Best bet is to talk to a Mortgage broker that is familiar with them...so you know, technically you are not getting a mortgage as you own no "real estate" (you own shares in a corporation), rather you are getting a personal loan.

2-Fees vary from building to building. How much they are, how much they fluctuate, and assessments are going to depend on the management of the board and the condition of the building. If a building is very old and needs lots of upgrades...expect some assessments to do the necessary repairs (as this cost is split amongst the "shareholders").

3-If they include heat (and it's not electric), gas and hot water will vary by usage. If you take long showers and cook 24 hours a day expect a higher bill...but if not it's nothing that will kill you, I wouldn't think to expect more than $50, but it's been a while since I only paid for cooking gas and hotwater heater.

4-It depends on how large the building is. I am not familiar with Yonkers as I'm up in Orange County, but that seems normal for this market, in fact only 3 homes on the market seems like a good sign to me. I would try and talk with some people who live in the building (not the sellers) to find out what they think about the Home Owners Association to try and get a feeling for what the atmosphere is like.

Hopefully this helps you. Best of luck in searching for your new home!

~Joey

[Henna]

I'm not sure if the answer to #1 is totally correct. i bought a coop and I do have a mortgage. It's true I had to go through a bank that deals with coop loans, but the federal government recognizes my loan to be a mortgage as I get the tax benefits of paying mortgage interest. If I had purely a personal loan, then I would not get this benefit.

[joeymarine]

Originally Posted by Henna

I'm not sure if the answer to #1 is totally correct. i bought a coop and I do have a mortgage. It's true I had to go through a bank that deals with coop loans, but the federal government recognizes my loan to be a mortgage as I get the tax benefits of paying mortgage interest. If I had purely a personal loan, then I would not get this benefit.

Yes, the government does recognize it as a mortgage meaning you still get all your interest to write-off come tax time and all those nice benefits.

~Joey

[brittlestar08]

Originally Posted by joeymarine

I would try and talk with some people who live in the building (not the sellers) to find out what they think about the Home Owners Association to try and get a feeling for what the atmosphere is like.
~Joey

Sellers are almost always biased... so true.

[KTF&1096]

Interest rates are slightly higher than conventional mortages. If I'm not mistaken, you also may not be eligable for home equity loans, because you technically do not own real-estate. I could be wrong about that though.

Maintenance...
When I purchased my co-op in the summer of 2001, the seller and the board boasted that there has not be a maintenance increase in the previouse 10 years. I wish I could say that - because I had dramatic increases every year! In the five years 6 years I have been here - my maintenance has risen by roughly $550.00 per month, and yest that hurts!!

The stability of the maintenace depends on multiple variables. Such as how many apartmetns are sharing the load to run the cooperation. Are they any major projects planned (new black top, roof work, boiler, etc..) Are they any major repairs looming? If so - your paying for it! It also depends on how good the board runs it financially. The coop boards in general try to keep the maintenance as stable as possible - mostly because they're paying too!

HEAT & HOT WATER
As for not including heat or hot water - try to avoid those if possible. There are plenty that have that included in the maintenance. If you must, be cautiose of electric heat (in terms of fire saftey).

Also ask about parking spots - that's a very important detail that some forget about. You want assigned parking or at the very least ample street parking.


As for that street in Yonkers. It depends on your lifestyle. Best bet is to check out the street and hang there a bit to see how the day & night goes by. That a very street like area - but offers plenty of shops, bars, places to eat, etc...

Another thing to consider with buying a coop is that it is a very invasive ordeal. You must show the board all your financial details, as well as personal & professional referances. The people reviewing your paperwork would be your neighbors. If rejected -Coop boards are also not legally bound to inform you why.