Home Buying in Bronx>Question Details

Vince, Home Buyer in Bronx, NY

Should I buy an investment property or should I buy a co-op to reside in?

Asked by Vince, Bronx, NY Wed Apr 16, 2008

Since I do not have enough money to get my first real estate deal in NY, I wanted to get an investment property in another state. What kind of affect will that have on me as a first time homebuyer?

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Answers

3
Vince:

I am not a fan of Co-ops.

As a first time buyer, you will need an incredible credit score, and nearly cash to purchase a co-op. Very few mortgage companies will finance them with a mortgage. A co-op is set up where you do not own the property, but own shares of it. Everything has to be approved by a board of directors. They are pretty difficult to sell because the board has to approve not only the people, but their financial situation as well.
This can cause many people to want to buy it, but few actually will be allowed to.

If you buy an investment property, you will own the structure and land. There will be no board to approve or dissaprove of anything. You will get a deed for that specific property, and be able to choose who YOU want to sell the property to. New FHA guidlines have been set up so you can be a first time buyer, and finance up to 1.4 million for a four family house/building. (well ,that is the way it is in NJ). You can live in it, collect rent, claim depreciation on your taxes and write off home improvement on your taxes. ( I am not an accountant or Attorney, but consult one regarding these issues)

Own! Now is the time to buy, and you can take advantage of many programs to make this idea come alive for you!

Hope this helps.

Good luck, and have a great day.

Justin
2 votes Thank Flag Link Wed Apr 16, 2008
Vince, are you still considering the buying of a coop? let's talk.
0 votes Thank Flag Link Wed May 14, 2008
There are many coops and condos for sale in the Bronx area that require 5 - 10% down payment only, and there is financing. While with coops you do not own the property but shares of the property, your money does grow in a good market like the recent years. This was actually a good stepping stone for many people who didn't have the money to buy real estate. Some coops do not need board approvals, and some may not be as strict. The benefit to buy coop vs condo, is of course the affordability. The coop payments include only mortgage and maintenance and the taxes and utilities are included in your maintenance fees. While condos include mortgage, taxes and insurance. It may something to look into if you cannot really afford real estate but would like to invest in something. As with everything, your money does grow - you just have to sit and wait.
0 votes Thank Flag Link Tue Apr 22, 2008
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