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If you know you're going to be somewhere long term, land lease/leasehold can be considerably cheaper than renting, which is what some people may be going for, especially if they have no desire to or cannot afford to buy fee simple properties.
It's a con scheme. You are forfeiting your money for the rights to pay rent (maintenance) and don't actually own anything because the land owner can raze your building at the end of the lease. The only justification is the belief that there's going to be a next sucker (buyer) to give your money back to you when you want to leave ('sell').
It's a con scheme. You are forfeiting your money for the rights to pay rent (maintenance) and don't actually own anything because the land owner can raze your building at the end of the lease. The only justification is the belief that there's going to be a next sucker (buyer) to give your money back to you when you want to leave ('sell').
It works for who it works for and doesn’t for who it doesn’t. Again, some can’t afford to buy (or just may not want to buy) and this option may be cheaper for them than renting. You also don’t own anything with renting, but if I can sign a 20 year leasehold for a unit for $250k in downtown Honolulu in a building where comparable units rent for $1,600 a month, I may very well make out better than renting depending on how much the monthly condo fees add to my mortgage. I’d consider leaseholds under certain circumstances, but not as an alternative to actually buying a unit.
It works for who it works for and doesn’t for who it doesn’t. Again, some can’t afford to buy (or just may not want to buy) and this option may be cheaper for them than renting. You also don’t own anything with renting, but if I can sign a 20 year leasehold for a unit for $250k in downtown Honolulu in a building where comparable units rent for $1,600 a month, I may very well make out better than renting depending on how much the monthly condo fees add to my mortgage. I’d consider leaseholds under certain circumstances, but not as an alternative to actually buying a unit.
All true, also true that to play this game you need to have and risk a substantial chunk of change
The major reason for CASH ONLY is that the co-op knows that no bank will give a mortgage on the property and that is usually because there are too few owner occupied apartments. IOt looks like the owners outnumber the renters but by very little.
<First find out how many apartments the sponsor still owns, whether most apartments are rent stabilized rentals, when the land lease runs out, and if the place had been Mitchell Lama.
Of most importance: make sure you are not buying an occupied apartment.
According to StreetEasy, the 340K is very much in line with recent sales.
Last edited by Kefir King; 02-01-2021 at 09:41 AM..
That maintenance, no way. I think that $700 is expensive, no way would I pay $1200~.
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