Selling a BRA unit (Boston, Lexington: sale, real estate, for rent)

[jetle25]

Does anyone have experience in selling their BRA condo in Boston? I'm considering buying one from a family member but I'm not sure the legalities of it. Do you have to apply and be part of a lottery before buying directly from a family member? Can you sell for a profit? Seems like its hard to invest in property if you don't get ROI.

[495neighbor]

Originally Posted by jetle25

Does anyone have experience in selling their BRA condo in Boston? I'm considering buying one from a family member but I'm not sure the legalities of it. Do you have to apply and be part of a lottery before buying directly from a family member? Can you sell for a profit? Seems like its hard to invest in property if you don't get ROI.

Most towns do not allow affordable housing to be sold for a profit.

[Cliff Clavin]

Originally Posted by 495neighbor

Most towns do not allow affordable housing to be sold for a profit.

BRA allows for a 5% per year increase in value, plus any additional $ invested in upgrades.

OP - I believe it will now be first come, first served. Won't go back to a lottery. But you'll still have to qualify of course.

[495neighbor]

Originally Posted by Cliff Clavin

BRA allows for a 5% per year increase in value, plus any additional $ invested in upgrades.

OP - I believe it will now be first come, first served. Won't go back to a lottery. But you'll still have to qualify of course.

Thanks for the correction.

[flowbe202]

The whole purpose behind BRA housing is to prevent the skyrockting housing prices from driving people out of the city.

Complaining about the low ROI while keeping the sale between family members, OP, indicates you intend to take the whole cake and gorge on it yourself.

The scenario you describe is antithetical to the program's intent.

[495neighbor]

I've looked at 40b in Lexington and Wayland and there was much better integrity maintaining affordability in these developments than the 5% annual increase BRA allows.

[flowbe202]

More affordable properties are brought online in Boston than in either town you've noted as Boston simply has more and denser development. Just a fact.

This means there are a wide array of affordable properties tied to the market they're developed around. Harvard Commons affordable properties are different from Brewery which are different from D4 which is different from ArtBlock.

While not perfect (as witnessed by the OP's attempt to circumvent the system), they do offer an entry to controlled housing stock within the city.

There is no guarantee you will receive your full appreciable value-- the market still determines price even in this real estate area.

I've seen one property in the South End sell for significantly under it's original selling price seven years earlier.

If the original owner overbuilds a BRA property, applicants won't be able to afford its price due to income and asset restrictions. All in all, it works as an imperfect, perfect system.

[jetle25]

I'm not sure why I'm a cake gorger all of a sudden. You buy a place, put money into it, you hope it goes up in value and you get more then what you paid for. I think its just fair. Even if I applied and qualified, it is still a huge amount of money even based on AMI. What if my household grows and I need to sell to get a bigger place. It might be considerably less then the market amount but I personally think current rates are IMO illegal and immoral. To charge such high amounts for rent and purchasing property in Boston. But this is the case all over the country in major cities. But I digress. If it is indeed illegal to sell within the family then so be it. I just asked. Sure it defeats the purpose of the original intent to allow longtime community members a chance to be homeowners and not be priced out. I seriously doubt it prevents skyrocketing prices because that is still going on. It just seems like it functions in a bubble and when you do decide to get out you're subject to the terms while everyone else goes laughing to the bank with their dilapidated unit in trendy part of town. Maybe that is just the trade off to this program but %5 is better then nothing. That was the answer I was looking for thanks Cliff Calvin.

[bakgwailo]

Because you are purchasing the house at below market rates as it has been subsidized by tax payers. Thus, you can only make a certain amount off of its sale in the future. The point of these are places to have that are affordable to live and remain so - not for people to flip. If you want to make a high ROI, then buy into conventional housing that wasn't subsidized in this manner.

[CaseyB]

Originally Posted by bakgwailo

Because you are purchasing the house at below market rates as it has been subsidized by tax payers. Thus, you can only make a certain amount off of its sale in the future. The point of these are places to have that are affordable to live and remain so - not for people to flip. If you want to make a high ROI, then buy into conventional housing that wasn't subsidized in this manner.

Yes, you are correct. The initial buyers paid well below market price and often got special financing/rates. They can't expect to make the same kind of profit as conventional buyers.