New York City among highest rent markets in the nation...

[Cida]

Originally Posted by Aeran

despite slight price drops. NYC is still expensive. It ain't a bargain yet.

https://www.amny.com/news/nyc-rental...zumper-report/

Despite recent price drops in rent, New York City remains one of the highest rent markets in the country.
New York City ranked second in the nation with the highest rental market, behind San Francisco which is first.

https://www.zumper.com/blog/rental-price-data/

Aeran, surely you're not surprised? I don't expect anyone to ever move to NYC due to cheap rents unless we've been mostly destroyed by an asteroid.

[Aeran]

Originally Posted by Cida

Aeran, surely you're not surprised? I don't expect anyone to ever move to NYC due to cheap rents unless we've been mostly destroyed by an asteroid.

lol. No, I am not surprised. My comment was towards the doomsayers constantly predicting the demise of NYC real estate.

[roseba]

Originally Posted by mathjak107

the difference between condos and co-ops is more a financial structure .

many co-ops still have original outstanding mortgages on the building .

they just keep refinancing them and pay interest only so your purchase price actually consists of two loans vs a condo's one .

co-ops were popular because it was the landlords way of getting out of rent stabilization .

but since the building needed a certain percentage of insiders to buy and since most renters are renters because they can't afford to buy , co-op structure fit the bill .

if a co-op was 100k , the building held 50k with their bank and you got a personal mortgage for 50k . on the surface it appears like that co-op cost 50k because when you asked how much they told you 50k ..

your bank was more inclined to grant 50k mortgages than be on the meat hook for 100k .

but in reality your price is the 50k you paid plus the portion of the mortgage the building is holding which is paid through your maintenance .

when i depreciated my rental co-ops i get to add both parts together to arrive at the real purchase price .

technically your mortgage is junior to the building mortgage which is senior ... if the building defaults on their portion you can be current on yours and lose your co-op .
your personal mortgage is actually a 2nd mortgage on your co-op if the building still has an outstanding mortgage

happened to a friend of mine when the building went bust back in the 1990's . he was paying his mortgage but the building failed to pay theirs and the bank foreclosed .

I think many of things you wrote are true, but many are false. Each coop operates in a different structure. My father's building went coop in the last 80's. The rent stabilized tenants remained. It depends on the charter.

Good financing, in my opinion involves multiple mortgages. I'm really starting to understand the power of money now vs. money later. In fact, even though my mortgage has a good interest rate, I'd consider refinancing it just to lower it if it is worth it. My building has a mortgage now because they bought the land underneath the building which is not a common practice with coops.

[mathjak107]

Originally Posted by roseba

I think many of things you wrote are true, but many are false. Each coop operates in a different structure. My father's building went coop in the last 80's. The rent stabilized tenants remained. It depends on the charter.

Good financing, in my opinion involves multiple mortgages. I'm really starting to understand the power of money now vs. money later. In fact, even though my mortgage has a good interest rate, I'd consider refinancing it just to lower it if it is worth it. My building has a mortgage now because they bought the land underneath the building which is not a common practice with coops.

There is nothing I said that is not true ....of course in non eviction conversions whom ever did not buy remain stabilized tenants but once those apartments were vacated the landlord was done with stabilization on them. So coops conversions were the landlords light at the end of the tunnel .

I was a sponsor when I bought a package of stabilized co-ops that still had original tenants in those apartments....we bought out 7 out of 9 leases and sold off the apartments.

The last two were sold to an investor group for a big discount with the tenants still in them .

If anything is false it is your comment above about most coops not owning the land ..that is false .

For the record most nyc coops Do own the land ...there are relatively few that do not.
Maybe a few dozen at best out of thousands....

https://streeteasy.com/blog/what-is-...ilding-in-nyc/