Home Buying in Brooklyn>Question Details

Denise, Home Buyer in Brooklyn, NY

First time buyer here. I'm receiving $$$ from a lawsuit. I want to pay in full for a co-op is this a bad idea.

Asked by Denise, Brooklyn, NY Wed Sep 12, 2007

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Hi Denise,

Seems you have some mixed advise here. The best is to talk with a financial planner. Perhaps your CPA, if you have one, would be a good place to start. I understand your desire to have your home paid for and not have to worry about it. There are other things to consider however. DO youhave other debt? Perhaps at high interest rates? Most advise I have heard suggests paying those off first. Will you still have money "left over" if you did pay for the coop in full? Remember also that imortgage nterest is deductable . You have not mentioned anything about your regular income, or tax situation? I am NOT someone to give you advise as to the best move for tax advantage,,,or long term planning. I would be happy to get yoyu some names of financial planners or perhaps a CPA and/or a tax attorney. You need to make any moves carefully, with professional advise. I network with a lot of people and would be glad to share names....Good Luck!
0 votes Thank Flag Link Tue Sep 18, 2007
Great answer Mansur. Denise, I can also offer to get you a Free consultation with one of my referral partners that is a Certified Financial Planner with Merrill Lynch. Let me know if you want this referral.
3 votes Thank Flag Link Sat Sep 15, 2007
A morgage can be the most beneficial debt you'll ever have, and is one few financial planners recommend you pay off over other debt.

I agree, talk to a financial planner and weigh the pros and cons. It will depend on the coop, the price, and so much more.

Good luck!
1 vote Thank Flag Link Wed Sep 12, 2007
Patti Pereyra, Real Estate Pro in Chicago, IL
MVP'08
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I would recommend that you diversify your assets. While it's nice to have a place that's paid off, you don't want all your wealth tied up in one place. My suggestion would be to seek the advice of a financial planner before you make any investments. You also want to check with a tax professional regarding taxability of the money you'll receive from the lawsuit. Good luck.
Web Reference: http://www.go2kw.com
1 vote Thank Flag Link Wed Sep 12, 2007
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
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It depends on the co-op.

When purchasing a co-op there are many things to consider, most importantly, in a 100% cash deal, you need to look at the building financials. I would check other threads here for "co-op" or "coop" for more details. Also, I may be wrong, but you may want to finance something, even if it is 20% for tax benefits, security in case something happens to the property or building, etc.
1 vote Thank Flag Link Wed Sep 12, 2007
Check with an accountant. Interest write-offs are what keep even my wealthiest clients from paying cash.
Web Reference: http://www.dianeglander.com
1 vote Thank Flag Link Wed Sep 12, 2007
Hi Denise,

I am glad I was helpful. What did your advisor suggets? Did they mention the advantage to NOT aying it off in full? I understand the fear of debt getting them best of you..it has happened to me too...but you sound very responsible and on the conservative side...which can be a GOOD thing when it comes to money! So tell me what you decided to do....
0 votes Thank Flag Link Thu Oct 11, 2007
I actually have no debts. I find life easy that way. I will see a financial advisor but I actually see many friends and family knee deep in dept. My needs are little and I live a modest lifestyle...yet enjoyable. I don't desire to buy a car (can't drive anyway) so yes there will be money left over for other things to pay for, insurance. My income is also modest but I have clculated I would much rather manage a low maintenance every month than maintenance+ mortgage.
0 votes Thank Flag Link Sat Sep 22, 2007
It depends on your market. Deals can be had$$$$
0 votes Thank Flag Link Fri Sep 14, 2007
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