U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > New York > New York City
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 09-01-2011, 08:04 AM
 
5 posts, read 21,846 times
Reputation: 10

Advertisements

Hi, I am considering buying a coop on a land lease. I've heard many people speaking to avoid land-lease properties, but my sense is that, as long as the lease term is long enough, i.e. 50 years and over, the only difference is the significant discount on the property. The con, though, is a high maintenance fee at well over $2000. This specific property is in a very desirable neighborhood, zoned for good schools. Are there any one who buy such a property? Are you happy or regret your decision? Any advice will be highly appreciated!
Rate this post positively Reply With Quote Quick reply to this message

 
Old 09-01-2011, 08:17 AM
 
Location: Manhattan
1,870 posts, read 4,066,118 times
Reputation: 2916
Will the monthly costs (maintenance plus mortgage) be less then a property in the same neighborhood that owns the land their building stands on?

Anyway, how much is the apartment? How many bedrooms? Are the co-op's financials strong?

If you've got a 99 year lease on the land then it might not matter too much since you'll be long gone. However, keep in mind you may want to pass your property down when you die -- and eventually that lease will matter to someone in your family.

I'd avoid it personally.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-01-2011, 09:00 AM
 
5 posts, read 21,846 times
Reputation: 10
Thank you for the reply. The apartment on a land lease is much cheaper than the regular coop: below $500K for a 2-bedroom in midtown east. The building's financials are strong and it is very likely that the lease will be extended once the current term ends in 50 years or so. If I compare the monthly payments for three properties we like, condo, regular coop, coop on a land lease, they are all the same. We have two small kids and want to sell the apt in the next 7 to 10 years (want to be in a good elementary school district). We may have a difficulty finding a buyer but hopefully we find one, someone like us, within a year or so.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-01-2011, 09:56 AM
 
Location: Beautiful Pelham Parkway,The Bronx
9,119 posts, read 22,865,763 times
Reputation: 7470
Where are the tax advantages in a land lease co op ?

One of the biggest benefits of traditional home/co op/condo ownership is the deductibility of a large percentage of the monthly expense.Those deductible expenses are all derived from interest on building mortgages and real estate taxes paid to the city.Seems that with a land lease the co operators are just paying rent which is not deductible.

You can't really compare the monthly expenses of the different kinds of ownership unless the tax advantages are also the same.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-01-2011, 10:37 AM
 
5 posts, read 21,846 times
Reputation: 10
That is very true. I've heard that the tax deductibility is 37% for that particular apartment, which compares to 49% for another regular coop. I am asking for the detailed breakdown. I understand that the deductibility varies apartment from apartment even in each type of category.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-02-2011, 06:16 AM
 
Location: Manhattan
24,499 posts, read 34,326,845 times
Reputation: 12021
kumo,

A figure that I would try to get is the percent of that "well over $2000" maintenence that goes to the landlord. If you are paying for marble lobbies trimmed in gold leaf, epauleted doormen, and a staff who honors your every wish then you are getting something. But if most just goes into the coffers of an absentee landowner, then think again.

Remember even an extra $500 a month buys more mortgage.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-02-2011, 06:24 AM
 
5 posts, read 21,846 times
Reputation: 10
Thanks for your note! I'll definitely get the breakdown of the maintenance fee for further consideration.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-02-2011, 06:56 AM
 
2,848 posts, read 7,264,681 times
Reputation: 1670
What is the best way to look at the financials of a building? My husband and I are beginning a novice search to become owners vs. buyers and I've recently been doing more research on coops.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-02-2011, 07:14 AM
 
Location: Manhattan
24,499 posts, read 34,326,845 times
Reputation: 12021
I have never "shopped" them but I assume anyone trying to sell a co-op will provide his realtor with the financials and that realtor would show them to any prospective buyer.

For a sale without a realtor, the seller should be able to provide the buyer with the last financial statement.

I would certainly not buy without seeing the paperwork...unless it was Mitchell Lama.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Settings
X
Data:
Loading data...
Based on 2000-2020 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > New York > New York City
Similar Threads

All times are GMT -6.

© 2005-2022, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top