Not sure what you are looking for but you can find a condo in the city limits under 215k.

Sat May 3 2008, 20:24

Sometimes it may not make sense to purchase a home. with a low appreciation rate, you may do well investing your money in some other vehicle. There aren't many co ops and yes, resale is difficult. how about a business partner or family member to invest with you on a condo or single family home? You might also want to check with a real estate professional about grant programs that are avilable to first time buyers.

Wed Mar 26 2008, 15:41

Dana,

Dugald did an excellent job of outlining the main concerns with co-ops. I listed and sold a co-op last summer and needed to educate a lot of potential buyers. In addition to what has already been said, I would add that not all lenders will lend on a co-op because of the ownership structure. Really briefly, they tend to be cheaper. Appreciation is less generally then condos, but still better financially then renting. Dues tend to be lower and include taxes. You can't rent the unit or own pets generally. Personally I think they are a great option for folks who can't afford a condo or single family home. My guess is that they may even become more popular as time goes by and housing prices go up. NYC and SanFrancisco are repleat with them primarily because of their housing prices. We are closing the gap on those cities.

Tue Mar 25 2008, 16:08

Dana,

Some things to consider about coops:

1. Co-ops are great places to live. They are (more often) a community within themselves and in many coops, you'll be required to participate in cleaning of the common areas, setting out the garbage etc.

2. Coops are more restrictive (generally) than condos. In most co-ops, renting out rooms or the unit itself is very restricted. Some may allow a one-time rental to family members only. Others allow no rentals at all.

3. Co-op loans are more expensive. There are only a couple of coop lenders in Seattle and loans have a higher interest rate than your typical condo loan. Co-op ownership isn't actually ownership of a unit, it's actually a share in a company that owns the unit. Your particular share number allows you to occupy a specific unit.

4. Co-op ownership dues include property taxes. Since you're not actually an owner of real estate, the coop itself owns the building from end to end. All the property taxes are included in yoru home owners' dues.

5. Co-ops are almost always old buildings. I don't know of any new buildings being bui;t as coops (I will be happy to be contradicted on this point) so most co-ops are older buildings and you need to be aware that older buildings sometimes have higher maintenance costs that newer condos.

If you are thinking about a co-op, then it's a great alternative. You'll typically get more for your money, but at the expense of a smaller buyer pool when it comes time to sell.

I hope that helps.

Mon Mar 24 2008, 21:35

Hi Dana,

Your lender is right. The co-op you purchase shouldn't become an albatross around your neck just because it is a co-op. You will find that they can be competetively priced, which is what makes them attractive to people like you looking to get into a tough market, and when you go to sell it someday, you will want to price it competetively as well. I see it as a great way to get more bang for your buck. Of course before buying into any building, co-op or condo, you will want to look carefully at how they manage their dues--mainly that there are enough reserves to handle emergency repairs. Usually for a small building, people consider $40-50k sufficient. let me know if you have any more questions.

Mon Mar 24 2008, 16:30

Dana -

I am not by any means a coop expert but your question caught my attention because of a situation I was in a while ago today. One of my fellow agent in my office will soon be listing a co-op in the U-district so we got to talking about it in our morning meeting today.

From what I understand they can be fairly good investments though can be pain to sometimes sell or even purchase...however, I think if you are careful and willing to work hard to get your place they can still be relatively safe investments. You may not see the appreciation on your end as you would expect when owning your own place...but it sounds like that isn't your main concern. She did say that the comparable co-ops in her area have been going fine so she seems confident in it.

Sorry that I am not more of an expert at this. I just had to post though because of the conversation this morning. I am going to try to learn a little more in the coming week or so...maybe you should ask this question again next week so that I can sound like more of an expert. =)

Good luck...let me know if I can be of more help!

Mon Mar 24 2008, 16:06