Home Buying in 10032>Question Details

Nycmyhome, Home Buyer in 10032

Buying an hdfc for under $130,000 versus renting what are the pros and cons to this. This will be my home for longer then six years.

Asked by Nycmyhome, 10032 Tue May 31, 2011

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Usually with HDFC's there are huge flip taxes when you have to sell (i.e. 30%). Most of these HDFC's are fixer uppers and once you put money into them do not expect to be getting it back. However, if you want to own and this is what you can afford and you fit all the financial requirements then step up and buy it. However, ask your agent these questions:

**What's the Flip Tax?
**Is it on the Net Profit or the Gross when I sell? (usually it's on the gross)
**What bank will loan to the building?

These are VERY IMPORTANT to find out before stepping forward.
1 vote Thank Flag Link Tue May 31, 2011
It is definitely beneficial. Hdfc requires seven years of owner occupancy .You cannot sell or refinance during the period.
0 votes Thank Flag Link Thu Jul 25, 2013
It's a smaller building which is mostly owner occupied and is in good finacial standing, thanks for your input. Is there anything else I should look into.
0 votes Thank Flag Link Tue May 31, 2011
Nycmyhome,

Then it sounds like a good deal. Do you know how long it will be in a HDFC status? If it too is going to run out JUMP ON THIS!!! However, how big is the building? This too is something to think in the long term as you need to think, "Will and Can a bank loan to a unit in this building?"

Nick Rafello, V.P.
Associate Broker
The Corcoran Group
646-221-8321
212-444-7852
nrafello@corcoran.com
http://www.corcoran.com/nrafello
0 votes Thank Flag Link Tue May 31, 2011
Personally that sounds like a great price in NYC to me - even if it is a small house. How much total is 6 years in rent? More than $1,805/mo? Because $130,000 divided by 72 months (6 years) = $1,805.55/mo.
0 votes Thank Flag Link Tue May 31, 2011
The flip tax expires in the next couple of years and I plan on purchasing outright.
0 votes Thank Flag Link Tue May 31, 2011
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