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zaidam
*************
Member since 1/07 1519 total posts
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Dilema- Purchase co op now, or wait to buy house
I know this issue must have come up tons of times before, but I'd like some fresh input.
We are currently renting a one bedroom in Astoria and our rent is kind of high, and will be going up 4%in October. We are also TTC and would like to have more room when we have a baby.
We are debating on whether or not to buy a 2 bedroom co op, or wait another few years and buy a house.
We keep going back and forth, I would like some opinions on the advantages and disadvantages of both.
Any advice is appreciated. Thanks
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Posted 1/18/07 8:22 PM  |
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veeandrich
LIF Infant
Member since 5/06 325 total posts
Name:
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Re: Dilema- Purchase co op now, or wait to buy house
I would think if you are ttc you want to keep your bills as low as possible, just in case you need to go out on disability for whatever reason. your mortgage would be more manageable with a 2 bedroom coop but you have to think about how long you will stay there as well.
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| Posted 1/18/07 8:26 PM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Dilema- Purchase co op now, or wait to buy house
i say buy the co-op now and get some equity. that way in a couple of years when your baby is bigger you can take that equity and buy a bigger place. buy now while the market is down.
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| Posted 1/18/07 8:29 PM |
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november12003
Love my boys...
Member since 5/05 2412 total posts
Name:
Jenn
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Re: Dilema- Purchase co op now, or wait to buy house
I say buy the co-op. We did this when we got engaged. We didn't want to pay rent, but couldn't afford a house just then. So we got the co-op, stayed 2 years, built up equity and then bought a house...just in time for DS. Good luck!
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| Posted 1/18/07 8:40 PM |
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: Dilema- Purchase co op now, or wait to buy house
we couldn't find a house in our price range so we went the coop route. hopefully in 5 years or so, we can find the house. for now in the coop, we have plenty of room and can even start a family here...(we have 2 bedroom and backyard space)
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| Posted 1/18/07 8:48 PM |
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zaidam
*************
Member since 1/07 1519 total posts
Name:
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Re: Dilema- Purchase co op now, or wait to buy house
Thank you for your responses. We are leaning towards a co op, and I am so glad I got positive responses. All we've heard from certain family members is how co ops are no good, and we should not get involved in one.
*Can anyone recommend any co ops in Nassau or Queens?
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| Posted 1/18/07 9:12 PM |
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: Dilema- Purchase co op now, or wait to buy house
Posted by MrsSupermarket
Thank you for your responses. We are leaning towards a co op, and I am so glad I got positive responses. All we've heard from certain family members is how co ops are no good, and we should not get involved in one.
*Can anyone recommend any co ops in Nassau or Queens?
Were on the boarder of Suffolk/Nassau.
Depending on how the management company is (along with the board) it should be ok. Co ops are really only offered in NY and a few other states.
You may want to consider condos also as its pretty much a co op with differences (you own a condo outright, co op, you just own shares with in a company which gives you your unit) There are some other differences but that is the major ponit.
Message edited 1/18/2007 9:17:49 PM.
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| Posted 1/18/07 9:17 PM |
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bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
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Re: Dilema- Purchase co op now, or wait to buy house
if it's co-op or rent, then i say co-op. but if i were you i'd look at everything, including houses now. when i was looking, smaller houses weren't much higher than the co-ops and condos i saw and when the maintenence was factored in, the payments were really close together.
i have no experience living in a co-op, but i don't think i'd like it. sounds like too many rules, don't like the idea of having to be "approved" by the board, specified down payment, etc. no offense to the ladies/gents who live in co-ops...just my personal opinion.
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| Posted 1/18/07 9:36 PM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: Dilema- Purchase co op now, or wait to buy house
I would buy the coop and build equity especially if your rent is high. I live in a 2 bedroom co-op now and yes there are rules but if you follow them you should be OK. LOL. We have a no dog clause at our co-op and obviously (check out the avatar) I decided I wanted a dog. We had to go to court and fight but we ended up winning. All through out the process however we didn't have any major problems other than the lawsuit pending against us (i.e. no threats of eviction for other reasons, no harrasement) however the co-op I live in is extremly big and has alot of apartments. I am lucky that I have great neighbors and have never experienced a problem. I say, use that money every month for something you own that is going to build up equity until you feel ready to take the next step. Good Luck.
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| Posted 1/18/07 10:51 PM |
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rose825
Best Friends
Member since 6/05 10228 total posts
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Re: Dilema- Purchase co op now, or wait to buy house
I live in a small co-op in Bayside Queens. My apartment is 2 bedroom but techincaly junior 4 (mslaler second bedroom).
It was a great investment and I love the tax dedcutions I get and the equity I have built.
I know my neighbor is selling through Foxtons.- same kind of apartment as mine
foxtons
Message edited 1/18/2007 11:39:16 PM.
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| Posted 1/18/07 11:34 PM |
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Palebride
I am an amazing bakist
Member since 5/05 13673 total posts
Name:
Lori
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Re: Dilema- Purchase co op now, or wait to buy house
Posted by november12003
I say buy the co-op. We did this when we got engaged. We didn't want to pay rent, but couldn't afford a house just then. So we got the co-op, stayed 2 years, built up equity and then bought a house...just in time for DS. Good luck!
That's what we did as well - and it worked out perfectly for us!
We had a co-op in Glen Cove, where they're very affordable and close to train stations.
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| Posted 1/19/07 6:00 AM |
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riniko
LIF Toddler
Member since 3/06 486 total posts
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Re: Dilema- Purchase co op now, or wait to buy house
I recommend Glen Oaks Village.
It is on the north shore near the border between Queens and Nassau Counties.
They only require a 5% downpayment and that you meet the 28% PITI /36% total debt standard mortgage requirements.
You may consider buying an upper unit because they are allowing them to be dormered which is increasing the upper units values.
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| Posted 1/19/07 6:38 AM |
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eriberry02
LIF Infant
Member since 6/05 70 total posts
Name:
Erica
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Re: Dilema- Purchase co op now, or wait to buy house
we just bought a 2 bedroom co-op in Bayside at Jeffrey Gardens... walking distance to Bell Blvd and the LIRR... so far we love it!
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| Posted 1/19/07 9:38 AM |
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Ang-Rich
Beyond Compare
Member since 5/05 17988 total posts
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Re: Dilema- Purchase co op now, or wait to buy house
Posted by MrsSupermarket
Thank you for your responses. We are leaning towards a co op, and I am so glad I got positive responses. All we've heard from certain family members is how co ops are no good, and we should not get involved in one.
*Can anyone recommend any co ops in Nassau or Queens?
ETA: MY personal experience with the comment about co-ops:
When we bought our co-op in 2001 we got the same exact comments....in 2006 we sold for double the price. And not only that - we truly made money on the co-op in every sense of the word...all of the interest on the mortgage, all the maintenance all the work we did plus the mortgage itself was covered in the sale and then some. So for us it worked out...but you have to be diligent about the market changes and how they impact the property you are looking at or own.
Personally, I would suggest looking for a two bedroom - this way you have the space for a little one and you don't feel forced to leave before you are ready.
Also - I highly recommend Bayside (on the Nassau/Queens border) unless you work further into Long Island. It's a hot place and I don't see that ending any time soon. It's a great commute into NYC without the urban setting yet more of a LI type town - without the LI taxes.
Message edited 1/19/2007 10:53:34 AM.
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| Posted 1/19/07 10:00 AM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: Dilema- Purchase co op now, or wait to buy house
Just something to consider, but you might not gain that much equity in a short amount of time. it is not guaranteed that prices are going to go up from when you buy to when you sell. When we were considering buying something like a condo, after paying taxes and interest plus utilties each month it worked out better to pay rent and save. Just crunch the numbers and see what kind of return you would need to get and see if it is worth it. Good luck
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| Posted 1/19/07 10:15 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Dilema- Purchase co op now, or wait to buy house
QUOTE]
When we bought our co-op in 2001 we got the same exact comments....in 2006 we sold for double the price. And not only that - we truly made money on the co-op in every sense of the word...all of the interest on the mortgage, all the maintenance all the work we did plus the mortgage itself was covered in the sale and then some.
you can not compare 2001 to 2007
the market is so different now
you need to run the numbers and see if they work- remember they general rule is 5 years to recoup closing cost
and the first 7 years of the loan is interest - so unless the market spikes back up considerable- which I doubt is going to happen- there is a chance you could not make any money at all
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| Posted 1/19/07 10:33 AM |
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Ang-Rich
Beyond Compare
Member since 5/05 17988 total posts
Name:
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Re: Dilema- Purchase co op now, or wait to buy house
Wow - I in no way intended to say that this was guaranteed in ANY way - just that in my own experience when people doubted our decision we decided to go with our gut and take a risk...we were very lucky that it worked out for us. Not to mention that we acted responsibly in watching the market with the co-op to sell at the right time. We waited an extra year to sell so that we could take advantage.
I NEVER said that this was guaranteed with a co-op and NEVER said that the market was the same for the return we got. I gave it as an example to show that you do your homework - take the risk - and sometimes it pans out.
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| Posted 1/19/07 10:43 AM |
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Ang-Rich
Beyond Compare
Member since 5/05 17988 total posts
Name:
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Re: Dilema- Purchase co op now, or wait to buy house
Posted by Beth1210
and the first 7 years of the loan is interest - so unless the market spikes back up considerable- which I doubt is going to happen- there is a chance you could not make any money at all
That's not necessarily true at all. If someone were to add more to each payment it would could immediately begin reducing principal. In return reduced the interest over the long run.
If we are going to smack my hand for using a personal reference then let's remember to ALWAY speak in general terms. The first payment is complete up to to lendee and how they handle their payments...it's not always going to be the case where the first years are interest only.
And yes - nothing is guaranteed with the market - that's why it's important to understand what is happening before making a decision - also the length of time in which one plans to stay is extememly important.
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| Posted 1/19/07 10:51 AM |
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MrsA
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Member since 1/06 2012 total posts
Name:
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Re: Dilema- Purchase co op now, or wait to buy house
Posted by alnem
i say buy the co-op now and get some equity. that way in a couple of years when your baby is bigger you can take that equity and buy a bigger place. buy now while the market is down.
I agree.
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| Posted 1/19/07 10:59 AM |
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tourist
Member since 5/05 10425 total posts
Name:
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Re: Dilema- Purchase co op now, or wait to buy house
I agree, buy now for equity, if you can.
I live in a co-op & its not as restricited as people who have never lived in one may lead you to believe, but it can vary depending on the board.
If you are used to living in an apartment building, it's not that different. The main rules are usually just abut pets, noise & construction.
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| Posted 1/19/07 11:06 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Dilema- Purchase co op now, or wait to buy house
Posted by Ang-Rich
Posted by Beth1210
and the first 7 years of the loan is interest - so unless the market spikes back up considerable- which I doubt is going to happen- there is a chance you could not make any money at all
That's not necessarily true at all. If someone were to add more to each payment it would could immediately begin reducing principal. In return reduced the interest over the long run.
If we are going to smack my hand for using a personal reference then let's remember to ALWAY speak in general terms. The first payment is complete up to to lendee and how they handle their payments...it's not always going to be the case where the first years are interest only.
And yes - nothing is guaranteed with the market - that's why it's important to understand what is happening before making a decision - also the length of time in which one plans to stay is extememly important.
wow- you need to relax alittle- I never said you were guaranteeing anything - I was pointing out how the market is different today then it was in 2001
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| Posted 1/19/07 11:10 AM |
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Ltdentway99
LIF Adult
Member since 9/06 1752 total posts
Name:
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Re: Dilema- Purchase co op now, or wait to buy house
Start building equity as soon as you can. My DH and I bought a two-bedroom co-op. We love it.
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| Posted 1/19/07 11:26 AM |
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metsgirlie
How did you get blue eyes?
Member since 11/05 3763 total posts
Name:
LC's Mommy
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Re: Dilema- Purchase co op now, or wait to buy house
I say buy the co-op if you can. I bought a 2BR co-op over the summer and my mortgage + maintenance is only about $500 a month more. I regret not buying one sooner and wasting 2.5yrs renting.
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| Posted 1/19/07 11:27 AM |
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metsgirlie
How did you get blue eyes?
Member since 11/05 3763 total posts
Name:
LC's Mommy
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Re: Dilema- Purchase co op now, or wait to buy house
Posted by RandJ0806
i have no experience living in a co-op, but i don't think i'd like it. sounds like too many rules, don't like the idea of having to be "approved" by the board, specified down payment, etc. no offense to the ladies/gents who live in co-ops...just my personal opinion.
Yes we had to be approved. It is mostly for to make sure you can afford to pay your mort + main. I know every building is different but so far I have had no problems with mine and I've been there since the summer.
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| Posted 1/19/07 11:31 AM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: Dilema- Purchase co op now, or wait to buy house
I personally would never buy a co-op. I would go for a condo or small house before looking at co-ops. There are too many rules and restrictions, and the fact that you have to be approved really bothers me. Co-op boards can be the most discriminatory organizations out there. They don't even have to give you a reason if they refuse you.
I totally understand your situation about throwing away money renting, but I would look into other situations before buying a co-op. Again, just my opinion.
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| Posted 1/19/07 11:44 AM |
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