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Pumpkin
LIF Adult
Member since 5/05 3353 total posts
Name:
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Coop/Condo questions
DH and I were really hoping to buy a house but we have to alter that. We are thinking about a coop or a condo but do not even know what goes into purchasing one.
Any help would be great.
I know they required a certain % down,
you have to be approved by a board but other then that not to sure.
any advice? TIA
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Posted 5/30/06 4:42 PM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: Coop/Condo questions
its almost the same process....
not many major differences...the board meetings are the biggest difference. as long you are finicially sound, you shouldn't have any problems. Co-ops don't need an inspection because typically, major home improvements go thought the board so everything in the unit should be good.
remember, co-op you owns share of a company which gives you ownership to inside your unit (meaning you are responisble for the iinside and the co-op company is responible for the outside (windows, doors, etc..) vs condo, you own everything (physically)
We were in the same exact boat 5 months ago looking at over 60 houses and ended up in a co-op cause prices of homes are just bananas.... this co-op is great for us for now till we need more space and we will enjoy some perks of home ownership.
There is a great (by great i mean cheap) unit for sale in our complex but needs a TON!! of work...(ours was redone before we moved in)
here is a link to our unit before we moved in...
Message edited 5/30/2006 5:01:23 PM.
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| Posted 5/30/06 4:59 PM |
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Redhead
You Live, You Learn
Member since 5/05 31871 total posts
Name:
Jennifer
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Re: Coop/Condo questions
You need no approval by a board to own a condo...
Yes, like babyboy said, you own everything inside the condo..as opposed to shares with a co-op. Which is the biggest difference between the two
You do not need a certain amount down on a condo...That is up to you entirely.
Condos IMO are know to be more pricey..
BIG things to look for in either...is to ask about the reserves...
Message edited 5/30/2006 6:08:27 PM.
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| Posted 5/30/06 6:07 PM |
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Karen
Just chillin'!!
Member since 1/06 9690 total posts
Name:
Karen
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Re: Coop/Condo questions
I bought my condo 6+ years ago. Honestly, nowadays, the price of a condo is almost the same as a typical 2-3 bedroom house.
The process is almost identical to buying a house. No board approval required, but you may require board approval if you want to change things.
Definitely read the financials and by-laws before you buy and make sure you understand everything. A condo board will have no problem telling you to rip out new windows if they are not the required size, for example. A general rule - if it effects the outside appearance of your unit, you will probably need approval.
Hope that helps!!
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| Posted 5/30/06 9:23 PM |
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sweetpea0717
LIF Toddler
Member since 5/05 386 total posts
Name:
Trish
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Re: Coop/Condo questions
Our co-op required 20% down.. But we went through with it b/c it's in a great location and we knew we would have no problem selling it when we're ready!
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| Posted 5/31/06 9:03 AM |
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Ang-Rich
Beyond Compare
Member since 5/05 17988 total posts
Name:
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Re: Coop/Condo questions
I can't speak for a Condo but for a co-op:
Most (not all) require 15%-20% down, a minimum income (ex: $55,000 for one bedroom and $75,000 for two). In addition, many require board approval prior to purchase which entails submitting an application with finacial information and physically sitting in front of board members for a mini-interview once the application has been reviewed.
At closing, the co-op's attorney's will be present to hand a good portion of the transaction including receipt of payment of the flip-tax, paperwork to process names on the shareholder's certificate, etc.
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| Posted 5/31/06 9:22 AM |
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Pumpkin
LIF Adult
Member since 5/05 3353 total posts
Name:
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Re: Coop/Condo questions
the 20% down do all coop boards require that? What aboutresale?
Is it basically the same as a house, good area, SD good resale? TIA
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| Posted 5/31/06 9:26 AM |
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Ang-Rich
Beyond Compare
Member since 5/05 17988 total posts
Name:
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Re: Coop/Condo questions
Posted by Pumpkin
the 20% down do all coop boards require that? What aboutresale?
Is it basically the same as a house, good area, SD good resale? TIA
No - not all boards require 20% although many do. You can still find places that require less although it seems to be less and less these days.
Resale is a hard thing to answer...just like a house...so many things factor in. I will say that in 2001 when we bought so many people told us not to because we would have a hard time re-selling. But seeing how the housing market was climbing we decided to take a chance. We took on the responsibility of renovating and updating as well as maintaining the unit. Ultimately, I am glad that we took the chance on a co-op. We were able to build up equity which has been very helpful. We didn't want to pay rent but couldn't afford a home...it was the best thing for us at the time. I have no regrets about it...and now that we are in the process of selling I can back that statement up further...no regrets.
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| Posted 5/31/06 9:35 AM |
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Pumpkin
LIF Adult
Member since 5/05 3353 total posts
Name:
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Re: Coop/Condo questions
Posted by Ang-Rich
Posted by Pumpkin
the 20% down do all coop boards require that? What aboutresale?
Is it basically the same as a house, good area, SD good resale? TIA
No - not all boards require 20% although many do. You can still find places that require less although it seems to be less and less these days.
Resale is a hard thing to answer...just like a house...so many things factor in. I will say that in 2001 when we bought so many people told us not to because we would have a hard time re-selling. But seeing how the housing market was climbing we decided to take a chance. We took on the responsibility of renovating and updating as well as maintaining the unit. Ultimately, I am glad that we took the chance on a co-op. We were able to build up equity which has been very helpful. We didn't want to pay rent but couldn't afford a home...it was the best thing for us at the time. I have no regrets about it...and now that we are in the process of selling I can back that statement up further...no regrets.
I agree with you 100%. as someone who has rented i do not want to do it anymore, and a coop would do that.
I think there has been a change in the "atttitude" toward coops too. That has to affect resale.
Thanks for your help
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| Posted 5/31/06 9:47 AM |
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Pumpkin
LIF Adult
Member since 5/05 3353 total posts
Name:
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Re: Coop/Condo questions
If i may ask another question, obvisouly we would not buy nothing less then 2 br's, Is it a good idea to buy a 3 BR? I would think that would be better an extra bedroom definately a better selling point. A friend of mine said no.
Thanks again
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| Posted 5/31/06 9:59 AM |
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Ang-Rich
Beyond Compare
Member since 5/05 17988 total posts
Name:
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Re: Coop/Condo questions
Posted by Pumpkin
If i may ask another question, obvisouly we would not buy nothing less then 2 br's, Is it a good idea to buy a 3 BR? I would think that would be better an extra bedroom definately a better selling point. A friend of mine said no.
Thanks again
That's an individual choice. Obviously with more rooms there is more $ requried when YOU buy in. So you have to outweigh your needs with your financial ability. As far as resale - people buy what they need so there is nothing to say that a three bedroom would not be a good selling point. But for that same reason a 1 bedroom is attractive too.
I will say that, as we are in the selling process of our co-op - space is a huge factor for people. The first question I get is what is the quare footage. So with that - it can't hurt to have more space if you can afford it IMO.
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| Posted 6/1/06 8:32 AM |
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Pumpkin
LIF Adult
Member since 5/05 3353 total posts
Name:
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Re: Coop/Condo questions
Posted by Ang-Rich
Posted by Pumpkin
If i may ask another question, obvisouly we would not buy nothing less then 2 br's, Is it a good idea to buy a 3 BR? I would think that would be better an extra bedroom definately a better selling point. A friend of mine said no.
Thanks again
That's an individual choice. Obviously with more rooms there is more $ requried when YOU buy in. So you have to outweigh your needs with your financial ability. As far as resale - people buy what they need so there is nothing to say that a three bedroom would not be a good selling point. But for that same reason a 1 bedroom is attractive too.
I will say that, as we are in the selling process of our co-op - space is a huge factor for people. The first question I get is what is the quare footage. So with that - it can't hurt to have more space if you can afford it IMO.
makes sense, thank you so much! Good luck with the sale of your coop and your new home search
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| Posted 6/1/06 8:54 AM |
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Redhead
You Live, You Learn
Member since 5/05 31871 total posts
Name:
Jennifer
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Re: Coop/Condo questions
Posted by Ang-Rich
Posted by Pumpkin
the 20% down do all coop boards require that? What aboutresale?
Is it basically the same as a house, good area, SD good resale? TIA
Resale is a hard thing to answer...just like a house...so many things factor in. I will say that in 2001 when we bought so many people told us not to because we would have a hard time re-selling. But seeing how the housing market was climbing we decided to take a chance. We took on the responsibility of renovating and updating as well as maintaining the unit. Ultimately, I am glad that we took the chance on a co-op. We were able to build up equity which has been very helpful. We didn't want to pay rent but couldn't afford a home...it was the best thing for us at the time. I have no regrets about it...and now that we are in the process of selling I can back that statement up further...no regrets.
We did the exact same thing...
bought in 2001 and now sold in 2006.
We got more than double what we paid for the condo in re-sale...
But i really do not think anyone buying now a day will see that much of an increase...
But both condo's and co-ops will always, like any other property owned, appreciate...
And i think that actually 3 bedrooms are less desireable...
buying one is just as expensive as a house...so for the young, why buy?
And for older people retiring...really do not need 3 bedrooms...
IMO i would go for a 2
but that is me
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| Posted 6/1/06 6:12 PM |
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Diana1215
Living on a prayer!!!
Member since 10/05 29450 total posts
Name:
Diana
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Re: Coop/Condo questions
BUMP for Jessica
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| Posted 6/26/06 9:35 PM |
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anjerandunder
Positive thoughts worked!!!
Member since 6/06 1909 total posts
Name:
J
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Re: Coop/Condo questions
I think buying the co op was the best choice we could have made. We weren't financially stable to buy a house when we were looking so the co op was the only thing we could afford at the time. Now that we have equity in the co op, we're able to look for something else!! We would have still been renting with no savings if we didn't go for it. Our co op needs 10% down.
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| Posted 6/27/06 10:10 AM |
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