income caps on HDFC. how can one afford????

Asked by Natalie B. Jennings, 32703 Fri Oct 17, 2008

my question is how can you have a cap on an HDFC apartment of 114, 000.00 for 3 persons when the apartment is $525,000.00. How do you actually afford that? Who will give you a loan at that??????

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Jess, , New York, NY
Wed Feb 11, 2009
The reason it is confusing is simple: This HDFC has broken the law, in a manner of speaking. By law, all HDFCs are mandated to serve a low-income (now median-income) population, and the way that used to be enforced was by putting buyer income caps on the buildings.

It wasn't hard for building residents who inherited apartments and wanted to resell at market to get around that: Find recent college grads or trust fund kids with no income to buy the units. Or sell to foreign buyers who could claim no income or very little income.

It's broken the whole ethics behind HDFCs, which are very heavily subsidized by huge, 40-plus year tax breaks, and made them cash cows for some people.

The way around it? Don't buy in those HDFCs that refuse to follow the rules. They'll find their market of buyers is starved, and stop overpricing these units, which were designed to be perpetually affordable. Buy a unit in a building with resale limits, which will have affordable prices (in the tens of thousands) and a limited increase in property value that goes up slightly year by year. You won't get to retire on the savings, but you can pay for your kids college, start a business, buy a timeshare, or take vacations twice a year as a result of your savings. HDFCs are for working New Yorkers - too sad that so many are willing to sell out for one person's wallet to get thicker. Visit for more on HDFCs.
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Betzabeth Ta…, Home Buyer, Pittsburgh, PA
Thu May 22, 2014
Timeshares need to be looked up as a purchase and not an investment. Regardless of how timeshares are presented, they don't perform as well as a house or stock investment. If you look around the resale market for timeshares on websites like EBay, Redweek, or TUGBBS will find that you can buy a timeshare for far less money than what the first owner purchased it for
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