So you might be giving away some price appreciation if there's an up market.
Let 's say you bought a free market property in Harlem, and real estate in Harlem overall went up, The value of your property would probably go up.
Now let's say you bought a restricted property in Harlem, and real estate in Harlem overall went up. Your property would probably go up too, but not necessarily by as much.
So if you then want to sell and trade up, you will be in a relatively worse position -- you got in on the ground floor and climbed up one flight of stairs, whereas your competition who bought free market apartments got in on the ground floor and took an escalator up two flights.
Depending on your finances, I think that's a reasonable risk to take, but it's worth talking over with your lawyer/accountant.
author, "Diary of a Real Estate Rookie"
Insider Real Estate Tips with a Twist of Humor: http://tinyurl.com/2ag28z
If you qualify based on the income restriction and you plan to live there. you will be in very food shape in a few years. getting in the right Coop is important but its hard to go wrong with these as a long term purchase and hold.
I must go now because Community Board 10 where I serve as Treasurer is holding a Town Hall meeting for HDFC's this evening at the Oberia Dempsey Center in Central Harlem.
I sincerely believe, that from the answers to your question that have been posted, you already have received more or les good advice. but if you are looking to buy a three (03) Br HDFC Co-op apartment in Harlem(Hamilton Hts.), I have one available for you. Thanks.
In a coop, the screening all takes place in the purchase. You won't end up over your head, because the loans are too laborious to issue for that.
However, the other poster is correct: You will not be raking in the cash after an up market. But overall, you'll be in a good position if you intend to live, work, and stay in New York City. When neighbors are paying mortgages in the high thousands, you'll be paying a nice, comfortable, steady payment, and can stash the extra dough into whatever dream fund you want. Even in situations where HDFC shareholders wind up facing crisis, organizations like your board and UHAB offer solutions, and yes, Section 8 is issued for use even in coops.