Brooklyn Heights apartment. Too good to be true? (lease, co-ops)
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There's a bunch of units for sale real cheap in that building. The building has a land lease, that's why the maintenance is so high and everyone in the building is trying to sell. Don't buy in that building, never buy in a building with a land lease. A land lease, means the building is leasing the property it's built on, typically a co-op building should own the property it stands on.
That is not wholly true nor accurate. Scores of commercial and multifamily residential sit on leased land.
Depending upon individual circumstances buying into a co-op or condo with a ground lease is either a good or bad thing. Generally (but not always) units in a building with ground lease sell at discount to comparable residential in area.
But the maintenance fees per month are still more than $1200/month, so that's rent right there even if paid off.
Yes but you can right off a portion of monthly maintenance fees, paying rent OTOH is just flushing money down the toilet at worst, or paying someone else's mortgage/housing costs at best.
You can sell this or any other apartment down the line and (hopefully) make some money or at least come out even. Paying rent gets you oogatz!
This isn't any great deal. That's what the apts go for in that building. Pre-covid prices were the same. They have other building in the area in the same price range.
That is not wholly true nor accurate. Scores of commercial and multifamily residential sit on leased land.
Depending upon individual circumstances buying into a co-op or condo with a ground lease is either a good or bad thing. Generally (but not always) units in a building with ground lease sell at discount to comparable residential in area.
Thanks for posting these! The history of land lease buildings is fascinating. Battery Park City owned by the state?
The very term evoked images in my mind of old Knickerbocker families arranging these property rights back in the 19th century and generating wealth through the generations. One dates back to 1952, though.
I was interested to read that nonprofits own much of it, including churches.
Thanks for posting these! The history of land lease buildings is fascinating. Battery Park City owned by the state?
The very term evoked images in my mind of old Knickerbocker families arranging these property rights back in the 19th century and generating wealth through the generations. One dates back to 1952, though.
I was interested to read that nonprofits own much of it, including churches.
There is saying in some real estate circles going back hundreds of years; "buy but never sell...". Many real estate families with names you've likely never heard of followed this advice for generations. As such they would never sell land for development, but happily arranged leases.
Ground leases also are advantageous because unlike a sale which generates quick cash, a lease brings in income for duration.
There is saying in some real estate circles going back hundreds of years; "buy but never sell...". Many real estate families with names you've likely never heard of followed this advice for generations. As such they would never sell land for development, but happily arranged leases.
Ground leases also are advantageous because unlike a sale which generates quick cash, a lease brings in income for duration.
Yes, I saw that article on Trinity Church. They certainly followed that pattern with all that land they got in the early colonial period. Leases for years and years, thus they are where they are today.
Land lease expires in 2043, so even if you live in it for a long time, it will be even harder to sell when you do, and/or your maintenance could go up considerably if/when the lease renews. Cash only likely because lenders don't like to lend on land lease co-ops and this lease will expire before 30 years is up.
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