Home Buying in Chelsea>Question Details

Thom, Home Buyer in Portland, OR

My wife and I would like to retire to NYC..

Asked by Thom, Portland, OR Fri Jul 4, 2008

question is, what kind of financials are required to get a condo/co-op approval? Do we need 40 times the monthly common charges? E.G, common charges $400, we need at least a $16,000 income? We know that 40x is the norm now for apartments, but what would we be looking at for a property we owned?

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To rent an apartment in Manhattan, you typically need to make 40 times the monthly rent. If you are looking to retire to Manhattan, your best bet is to buy, and in that case you would need to be pre-approved by a lender to make it happen. Co-ops often have their own very specific financial requirements and are a pain to deal with - I would strongly recommend buying a condo (the only reason to buy a co-op is that you really want to be in a specific building - they are very difficult to buy and very difficult to sell because of board approvals). Give me a call if you would like to discuss and if you have any further questions, I would be happy to help you frind your dream retirement home. My phone is 917-657-6532 and my email is rdaub@warburgrealty.com. P.S. I used to live in Seattle so I'm familiar with the Northwest as well!
1 vote Thank Flag Link Sat Jul 5, 2008
Retiring to NY/ My parents did that and they are loving life. They rented for a year to make sure that they were going to be ok. After that year I found them a great apartment just a stone through away from central park. Let me know when you are ready and I will do my best to assist you.
0 votes Thank Flag Link Thu Oct 24, 2013
please call me , and i can walk you through your options
0 votes Thank Flag Link Wed May 29, 2013
Kind of wondering what the point of answering question that are two years old is.
0 votes Thank Flag Link Mon Jul 5, 2010
I grew up in the city and it's excellent for retirement. Where else in the country do you have two rivers, great parks (Central Park, Battery Park, and Riverside Park) not to mention Prospect Park etc...the best museums in the world, more galleries then a person can ever preview and not to mention all the great theatres!! I can go on and on, now to answer your question if you're purchasing a condo it's usually 10% in this market it might be 15-20% down. To purchase a co-op you'll need at least 25% of your income to go towards maintenance & mortgage its called debt to income ratio. Some buildings will accept from 25-30% but it must be confirmed, and of course low debt as well having two years of maintenance & mortgage after closing (liquid accounts). There's a bit more involved but that's a quick overlook. It's an excellent time to purchase because sellers are more open minded in negotiating, please keep in mind there's no free lunch in the city and no one is giving apartments away but the asking price is somewhat negotiable in this market. If you need assistance free to contact me anytime and good luck!!
0 votes Thank Flag Link Tue May 4, 2010
Hi,

Looks like your quesiton was answered if you have any other financing questions my number is 516-233-4842 and my email vaiossa@unitednorthern.com My bank provides very flexible financning options
Web Reference: http://unitednorthern.com
0 votes Thank Flag Link Wed Apr 28, 2010
Hello Thom.

Let me take a different approach with you. I'm not sure as to why people try to sway buyers away from where they want to live, you say NYC they say Jersey go figure.
Not sure if you have had a chance to get in-touch with a local broker to discuss your move to New York, it would be a really good idea that you do this soon and educate your self on your options.
Since you are retiring, I would agree with Richard and also say that buying is much better than renting, you are probably not even talking about renting it's just that "40 times the monthly charges" threw some of us off, 40 times you deal with when you are talking about renting an apartment. When you talk about buying a coop or a condo each building has it's own rules. For the most part Condos are very laid back and have little saying as to what goes on in the building, why people are buying in it, are they planning on living or renting, etc... they don't care or if they do don't have a saying, the only thing a condo can really do is deny a pet and have the first right of refusal, ( which means that if they deny you, they have to purchase that apartment them selves). Coops are very much concerned as to who is interested in purchasing into their building, most coops do not even entertain a pied a terre situation (when people are buying to live part time as a second or third home), they may require for the apartment to be a permanent residence for the buyers.
Condos on average require a minimum of 10% down, now a days with it being difficult for some people to get approved for a loan, 10% may not be enough and people go up to 15-20% on a down payment.
Coops on average require a 25% down payment, and again that may also not be enough.
One issue which you may face with a coop instead of you having 40 times the common charges, they may require a buyer to have money in the bank as CASH of a year or even two year maintenance plus mortgage AFTER CLOSING. Some may require a year, some may want only maintenance and some may not ask for any of that, it all depends on the type of a building you are buying into and your financial situation along with their requirements for it's tenants. Some coops allow only 50% financing while others only do cash sales, each is very different.
Because you are retiring, you aren't really looking for an investment, rather a security of knowing that you have your own place here in the Big Apple and a coop may be a very good choice for you. They are less expensive than condos, and on average you get more space, plus many coop buildings are pre-war and still remain all the original details of beamed ceilings and moldings, etc...

Thom I'd love to discuss this further with you whenever you are ready, you can call me or email at any time.

Best Regards
~Alen, M
0 votes Thank Flag Link Mon Jul 7, 2008
Hi Tom:

The simple answer is, I'm an ex New Yorker! Lived in Chelsea ten years, went to Hofstra, Brooklyn College. Also an actor, and actors never retire. So, my wife and I, after raising three children, want back into the theatrical center of the universe.

Washington Heights looks interesting, as does Harlem and Spanish Harlem. Probably priced out of the rest of Manhattan.
0 votes Thank Flag Link Sun Jul 6, 2008
You need a lest expensive area near NYC like Westchester. Visit my Web Site, PaulMVPteam.com and look at different neighborhoods to choice and prices of properties with in those area's. Then call me for questions you might have.. Good Luck, Paul
Web Reference: http://PaulMVPteam.com
0 votes Thank Flag Link Sun Jul 6, 2008
Thom,

So you live in Portland and are looking to retire...to NYC?

Now that's different. What's the draw to NYC...or NY in general? NYC is the greatest city in the country...but to retire there? I'm just curious.
Web Reference: http://www.tommcgiveron.com
0 votes Thank Flag Link Sun Jul 6, 2008
Co-ops may be more difficult to purchase, but they're generally larger apartments, have stable communities and are older, historic buildings. I suggest you take a weekend trip to Manhattan, read books about famous residential buildings and get to know different neighborhoods. The cost of living is very expensive, also.

Also, keep in mind when you purchase, you're not only paying a mortgage (if you need one), but you're either paying monthly common charges and real estate tax (for condos) or monthly maintenance charges (for co-ops). Lastly, expect to put 10 - 20% down. Speak to a Realtor and ask for a Manhattan Buyer's Guide for estimated costs and time frames associated with purchasing a condo or co-op. If they don't have one, email me and I'll send you one in the mail or as an attachment in an email.

Good luck.
0 votes Thank Flag Link Sat Jul 5, 2008
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