P.S. Hopefully you have your own Buyer's Agent and aren't just dealing with the Listing Agent. The listing agent has no business asking for your financial info, except for a pre-approval letter from the lender or a bank statement (to show proof of funds for a cash purchase).... more
As a retired realtor near NYC, I disagree with Noah's reply that co-ops will become obsolete. To answer your question, purchasing a co-op or a condo is based strictly on finances - not on which is a better buy. There is a large gap in the pricing of co-ops vs. condos with condos being more expensive to purchase because the buyer obtains the title or deed to the unit. In a co-op, the buyer is a shareholder purchasing x number of shares in a limited housing corporation that gives you a propriatary lease to reside in a specific unit.
Theoretically, condos are easier to sell which makes them a better buy, BUT the prices can be $100,000. Or more for the exact same size unit as a co-op. Outside of the immediate suburbs surrounding NYC, there are fewer co-ops & more condos with the condo prices decreasing. However, the further away from NYC you are, transportation costs increase if you commute into the city.... more
All things being equal the price would be from about the same price level to 10% higher. In 2008 there was a downturn and it has crawled back to those levels. The 10% upturn comes from the current lack of good homes on the market.... more
There are definitely finds in Forest Hills, Queens, NY with less than $2000 monthly maintenance fees. + don't forget that generally 50-60% of these fees (depending on the building itself) are DEDUCTIBLE tax payments. That is a considerable financial advantage over paying similar amounts for rent.
Any more questions, email me: JuditYourRealtor@gmail.com... more
This depends on the way the cash flows into the co-op, and could also be a function of the demographic make-up of the board and members. In general, a line of credit would be used in instances where receivables are going to be collected in the reasonably near future, but certain bills are due now. Since such lines are typically "short-term" in nature, any such borrowings would be paid back when the receivable is collected.
Sometimes, however, when there are older people with limited incomes are on the board, they choose to borrow money (usually with a mortgage, not a line of credit) rather than fork out cash upfront. The net effect of this kind of decision is to push the payments onto members who might join in the future.
If you have a certain set of financials you'd like me to read and opine on -- as long as you understand that my opinion is nothing more than that -- please let me know.
Lic. R. E. Salesperson
Beaudoin Realty Group, Inc.
78-27 37th Ave., Suite 5
(917) 204-7802... more
Since there are other factors besides credit that determine mortgage qualification, visit with any licensed loan officer beforehand; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously. If your search includes co-ops, and depending on just how bad the credit is, keep in mind that you may not meet co-op board requirements.... more