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This is absolutely NOT true. Especially in NYC where condos and co-ops are almost the norm. If a condo/co-op is hard to re-sell it's because of the down market). I can think of a few reasons why one might prefer a house over a condo/co-op but there is a big market for both types of buyers in this area.
I've heard the argument that studios are hard to re-sell...but even that argument I don't buy because there are always going to be [single] people just starting out that are looking to buy "starter" apartments.
No, that is not true. The value of single family homes is affected by general market conditions and how well the property is maintained. Condos have an added element that affects their value. Condos/co-op communities are much more affected as a group by what is happening to the other units in the development. Large numbers of rentals tends to lower the value of a community. Also, with co-ops and some condo's, the owners need to get approvals from the boards to do any remodeling whereas a single homeowner doesn't. There are many benefits to condo's and co-ops, such as never having to shovel snow . But, IMO, if I'm shelling out $500k and snow doesn't bother me, I want my own private house and backyard. Some people prefer apartment living and that's fine too.
No, that is not true. The value of single family homes is affected by general market conditions and how well the property is maintained. Condos have an added element that affects their value. Condos/co-op communities are much more affected as a group by what is happening to the other units in the development. Large numbers of rentals tends to lower the value of a community. Also, with co-ops and some condo's, the owners need to get approvals from the boards to do any remodeling whereas a single homeowner doesn't. There are many benefits to condo's and co-ops, such as never having to shovel snow . But, IMO, if I'm shelling out $500k and snow doesn't bother me, I want my own private house and backyard. Some people prefer apartment living and that's fine too.
What you are saying has little to do with the question of whether apartments are harder to sell than houses as you claim.It might be harder to sell you a condo or a co op but there are an equal number of people who feel just the opposite and who would never want to own a house.There might be more people who want houses than apartments on Long Island but the opposite is true in NYC. Just because you feel a certain way about things doesn't mean it makes sense to generalize and project your feelings and views onto the entire real estate world.
NYC co ops have suffered less from the downturn and foreclosures than houses and condos in the last few years precisely because of some of the restrictions you feel are negatives.Thankfully,most coop boards have always been quite a bit stricter than banks in giving their approvals.
Your claim that apartments are harder to sell is just a ridiculous generalization.There have been a total of 11 apartments in my co op building that have come on the market since the meltdown ( end of 2008)and all have sold rather easily within 4 or 5 months within 5 % of the asking price.The most recent sales are transferring at only about 10% less per sq ft or per share than the market peak in 2007.Compare that to the 9 mos or more it takes to sell a house and the 30 % decline in house prices over the last 3 years.
Look, the whole argument about whether to buy a coop/condo or a house is pointless in this context. The places where you can get one the other isn't an option, and vice versa. It's not as if there's some way to get a house in NYC in the price range the OP was talking about. And if it's not a house, it's either a coop or condo.
Look, the whole argument about whether to buy a coop/condo or a house is pointless in this context. The places where you can get one the other isn't an option, and vice versa. It's not as if there's some way to get a house in NYC in the price range the OP was talking about. And if it's not a house, it's either a coop or condo.
There are plenty of houses, co-op's and condo's in the OP's price range but they may not all be in the area's the OP is looking for. Can he get a single home in Whitestone, Bayside or Bay Terrace? Probably not. Kew Gardens/ Forest Hills? Probably not. Westchester may be pricey and I know some areas where the taxes are very high. LI has many counties where the prices are average but taxes will either kill you or they are so low because of school district or other factors.
Rockland, Orange, or Dutchess? The latter has Metro North access and has acceptable homes in the $250,000 range, or less, and acceptable condos for much less. Commuting costs will be high, though.
Tough choices. 2012, will the year for savings for us. We do feel we could go for a condo/co-op in a lower price range. I've seen several in the 200-300 range in some parts of Queens. In any case, it doesn't have to be in NYC. I will also look into FHA loans for a lower down payment. thanks everyone for your advice.
Your best bet is to talk to a reputable mortgage broker to get a sense of your situation. Condos and co-ops have associated maintenance fees, so while the mortgage may be lower, you may be paying close to your mortgage on the type of house that you really want to buy, i.e., single-family as I read your posts. 2BR condos are easier to sell, however, but co-ops can be a pain in the neck, especially if you are not buying for the longer term. Your life may change with children, dogs, cats, etc., and a co-op may be too small, or too restrictive, for your life, such that by the time you pay broker fees, you may not have any equity left.
Westchester can be problematic when looking to stay in your preferred price range for a single-family house, because the school district is an important consideration when looking for the long-term. Right now, do not rush to buy; rather, explore Westchester and LI to find a nice town/village/city/hamlet that has decent schools (even without kids, it's easier to sell), and test the commute, factoring the property taxes. Save the salary increase, as you have your housing cost under control right now with your current apartment.
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Thanks for the replies guys.
When I lived in Kew Gardens (Queens) in 2007, I saw some 2 br co-ops going for ~250k
You can get a nice 2 bedroom co-op now for that price or even less in Kew Gardens. Hell, you could get a nice 1 bedroom for around $150K!
Before you make the move to the burbs, be sure to check out local taxes and their recent upward trajectory. Some places are much higher than others, and you can EASILY pay 1K a month for taxes on a 300-400K house in many neighborhoods.
You can get a nice 2 bedroom co-op now for that price or even less in Kew Gardens. Hell, you could get a nice 1 bedroom for around $150K!
Before you make the move to the burbs, be sure to check out local taxes and their recent upward trajectory. Some places are much higher than others, and you can EASILY pay 1K a month for taxes on a 300-400K house in many neighborhoods.
But you need to compare your NYC property tax PLUS NYC resident income tax (3-4% of income) verus your suburb property tax.
Some people compare the taxes without the school district component (a large part) then compare the school district tax portion with NYC private / catholic school costs.
It all depends on your life cirumstances.
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. But, IMO, if I'm shelling out $500k and snow doesn't bother me, I want my own private house and backyard. Some people prefer apartment living and that's fine too.
