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You want a single family home instead or I'd consider renting or even leaving Long Island.
many folks who buy a co-op do so because they cant get a mortgage for the amount of a house.
the beauty of a co-op is its easier to qualify with a bank.
a condo may be double the price of an equal co-op because the sponsers bank is actually carrying part of your mortgage which is on the building.
that means your own bank has to go out on a limb for alot less with you since the sponsers bank is on the hook for part of your apartment with their bank..
landlords had to origonally have enough tenants buy to ratify the going co-op. they knew many tenants had low to moderate incomes so to make it easier for them to qualify for a loan the landlord held part of the cost of the apartment in his own mortgage.
the banks were more liberal with lending since they were on the hook for less.
you paid the landlords side through your maintaince
Thanks to Long Island Board of Realtors, co-op boards in Suffolk County must accept or reject an applicant within 45 days, and if rejected must give a written explanation for the rejection.
From what I understand and what my lawyer has told me, the only real reason a board wouldn't approve is because they didn't have the finances to show and prove they can support the apartment. Boards want to make sure you can afford to pay your mortgage and maintenance each month. If you default on the maintenance, specifically, I'm told the other share holders have to absorb the cost and then the bank has to step in.
Hmmm. This is an interesting thread. What exactly does the board look at as far as finances. Lets say I put down 60% but I only make approx $45k a year. What are the logistics of how they arrive at weather you qualify or not?
Hmmm. This is an interesting thread. What exactly does the board look at as far as finances. Lets say I put down 60% but I only make approx $45k a year. What are the logistics of how they arrive at weather you qualify or not?
Apparently they have to do a financial "background" check just like what the bank would do once you've applied for a mortgage pre-approval. They'll want to look specifically at your debt to income ratio and they'll want to be sure you can pay your mortgage & maintenance on your income.
I currently live in a co-op and hope to close on a home within the next few weeks. I've lived in my current co-op for about 8 years.
In the those 8 years, the maintenance has gone up twice. The first time was after extensive renovations were done to the appearance of the building(s) and landscaping. Well warranted because the appearance was improved greatly. The second time will be now. The reasons given at the meeting is high oil prices. I'd be ok with that if the landscaping hadn't gone to complete **** in the past six months. The grass is now mud because of over watering.
Aside from the maintenance, my experience has been so so. My neighbors have been terrible. Between not following the By Laws and the owner of the co-op renting to Section 8 tenants, its been eventful. I don't want to perpetuate a stereotype of Section 8 tenants because some tenants are good, but the ones that I've had to live around have been outright dis favorable.
The good things? Its nice to have someone always on hand to fix something that breaks. The maintenance + mortgage is affordable and has allowed me to save money for a house. The location lends itself to a very short commute for me. And there is plenty of parking.
Are you having any issues selling your Co Op?? I would like to do the same, live in the co op 5-10 years then hopefully buy a home (hopefully have 2 incomes rather than one)
That brings up a good question to ask, if neighbors do sublet - are they also approved by the board. I know that we are able to sublet with an annual fee.
Thanks to Long Island Board of Realtors, co-op boards in Suffolk County must accept or reject an applicant within 45 days, and if rejected must give a written explanation for the rejection.
I'm wondering after going through the crazy process (since the board is the last step), if i'll get rejected if they don't like somethign as stupid as my hair color lol.
Are you having any issues selling your Co Op?? I would like to do the same, live in the co op 5-10 years then hopefully buy a home (hopefully have 2 incomes rather than one)
That brings up a good question to ask, if neighbors do sublet - are they also approved by the board. I know that we are able to sublet with an annual fee.
I have not tried to sell my co-op, but my Uncle lived in the same complex, different building and it took him quite a while to sell. I know of another couple in my same building that have tried to sell and they had trouble. I think they're now trying to rent it out because I believe they bought a home. And the other outside owner is also going to sell, so I'm going to keep an eye on that one and see how well that goes.
Keep in mind that, ironically, all three I have mentioned are apartments on the third floor. That might have made things a little difficult because its quite a walk up.
Oh wow, okay! I was just wondering when it comes to sell, if the reason was due to the board just turning away potential buyers.
Good Luck with your selling process & buying of the new home!
Thank you! Thankfully, I am not going through the hassle of selling the co-op right now. My parents will move in and assume the payments. When the market gets better, I will most likely sell.
Coops are not as desirable as condo's and in this economy and real estate times, getting rid of a co-op/condo is more difficult than selling a house. I purchased my condo in early 2005 and sold in late 2009. We were on the market for a year and that was with me tellign the realtor to drop the price every so often. If I were you, I would rent right now rather than dump my money into a co-op or condo. I am not a fan of co-ops b/c you own the shares rather than the co=op itself. In a condo you own the interior walls in and there is no board involved with approving anyone who wants to purchase your condo when you go to sell. A condo works very much like when buying a home wherein you go to a bank to get the mortgage and there is no outside person who has anything to say about it. My recommendation to you is that if you are going to purchase a co-op make sure it's in a desirable location and a decent area. I know where the Wharf is and it is a decent development. I lived in a condo in Farmingdale right by the train station and the location made it VERY hard to sell. Also, my next recommendaiton is if it's a unit where you have someone living above you, buy a upper unit. I lived in a lower unit and when I moved there it was single couple with no children and when they sold, the next couple had a child and I heard EVERYTHING that went on with that child..with the running back and forth and dropping things. It used to start at 6:30 AM on the weekends and when I said something to the owners, it only got worse and caused a huge mess between us. I learned my lesson that if I ever had to live in a co-op/condo or rental I would take the upper floor. Of course, unless you have or plan to have children..well then I recommend the lower level so there would be nobody below you who would have to hear everything. However, if the floors are made of concrete in between units, you don't hear anything. And yes, there is a board with a condo as well and it's all about politics. My husband hated that there were by laws to live bye and that people were so nosy and always into your business. We couldn't wait to sell and buy a house. Also realize that if you buy today, it doesn't mean that in 10 years you will make anything on your home. You can't go into real estate with that intention today. I do hope that the market will recover and that real estate will start going up in value rather than coming down like it has but I don't see another housing bubble happening for many, many years if they even let that happen again. That was HUGE mistake. Oh, and before i forget, the reason why maintenance charges seem so high in a co-op is b/c your real estate taxes are included in that. Whereas in a condo your real estate taxes will get paid through your mortgage. I'm just really iffy about owning shares rather than a piece of real estate.
Good luck to you.
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