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alisonggg
Cutie
Member since 3/06 4749 total posts
Name:
a
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Re: Dilema- Purchase co op now, or wait to buy house
personally (and obviously this is just my opinion) I would rather buy a small house over a condo or a co-op. I would save up till I had enough money for a small house.
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Posted 1/19/07 12:18 PM  |
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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
Posted by SweetTooth
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.
Condos may not have the approval process, but many of them have rules too.
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| Posted 1/19/07 1:44 PM |
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Samson7256
LIF Infant
Member since 5/06 93 total posts
Name:
John
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Re: Dilema- Purchase co op now, or wait to buy house
Unless you are planning on staying there for quite some time or you have a strong hunch that the real estate market will be very strong in the near term, then I don't see how you could recoup say approx 10k in closing costs...plus any realtor fees associated in selling the co op. People keep talking about building equity but if you're there for only 2 or 3 yrs...you mortgage will not have decreased that much. Iin all likelihood it will be quite some time before we see the market appreciate as it has the past 6 years.
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| Posted 1/19/07 1:54 PM |
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Leeners
:)
Member since 5/05 4898 total posts
Name:
Eileen
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Re: Dilema- Purchase co op now, or wait to buy house
LOL. These coop posts always crack me up. People who have never lived in coops act as though they're prisons with a warden from whom you must request permission to pee!
OP - if you are even considering it, start looking. I got the MLSLI listings for all three - houses, coops and condos - in my target area for months before we were even serious about purchasing. We ultimately decided that FOR US a coop was the best option. It allowed us to still Live (go out to dinner, on vacation, etc), fix it up w/ a gorgeous new bathroom, kitchen, beautiful rooms, and yes, BUILD UP EQUITY. I would wager that those who are arguing that you simply cannot build equity in 2-3 years on a coop have never owned one.
DH and I bought ours 10.5 mos ago and if we sold it now (barring the obvious need to stay for 2 years due to tax implications), we would make considerable money on it even with the market the way it is. Just like with a house, you need to do your research, know the market, know the towns, etc. It's real estate - there are no guarantees, be it on a house, coop or an estate.
Another tip - walk around the coop(s) you're interested in, often. Get to know the type of people who live there. We were very concerned with diversity and made sure we found a complex that allows for it. Not to say we don't have annoyances for being in a coop - no one's saying it's a perfect situation - but it's the best solution for us at this time.
I live in Little Neck, 2 towns (and on the same LIRR line) as Ang&Rich. The area is fantastic - best of both worlds (the culture and diversity of NYC with a slightly more suburban setting). There are a ton of coops in Bayside and a few here in Little Neck and also in Douglaston (the town between).
Good luck!
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| Posted 1/19/07 8:32 PM |
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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 Leeners
fix it up w/ a gorgeous new bathroom, kitchen, beautiful rooms, and yes, BUILD UP EQUITY. I would wager that those who are arguing that you simply cannot build equity in 2-3 years on a coop have never owned one.
DH and I bought ours 10.5 mos ago and if we sold it now (barring the obvious need to stay for 2 years due to tax implications), we would make considerable money on it even with the market the way it is. Just like with a house, you need to do your research, know the market, know the towns, etc. It's real estate - there are no guarantees, be it on a house, coop or an estate.
!
right- but you put even more money by renovating it- if you ultimate goal is to buy a house- other factors need to be considered-
I rent in a co-op building- thinking I would love it enought to buy one- I can't wait until 9/30/07 to run so far away from this place- and yes I live in once of the so called best ones in bay terrace
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| Posted 1/19/07 9:02 PM |
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Leeners
:)
Member since 5/05 4898 total posts
Name:
Eileen
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Re: Dilema- Purchase co op now, or wait to buy house
Posted by Beth1210
Posted by Leeners
fix it up w/ a gorgeous new bathroom, kitchen, beautiful rooms, and yes, BUILD UP EQUITY. I would wager that those who are arguing that you simply cannot build equity in 2-3 years on a coop have never owned one.
DH and I bought ours 10.5 mos ago and if we sold it now (barring the obvious need to stay for 2 years due to tax implications), we would make considerable money on it even with the market the way it is. Just like with a house, you need to do your research, know the market, know the towns, etc. It's real estate - there are no guarantees, be it on a house, coop or an estate.
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right- but you put even more money by renovating it- if you ultimate goal is to buy a house- other factors need to be considered-
I rent in a co-op building- thinking I would love it enought to buy one- I can't wait until 9/30/07 to run so far away from this place- and yes I live in once of the so called best ones in bay terrace
I have also rented in a coop building and in my situations, being an owner and a renter are very different experiences.
As far as the $ going into it... anyone considering a coop vs. a house is not buying a perfect house, it will have things that need to be done. by purchasing a coop, we're not house poor and we had more than enough $ to make it our own. And, despite putting $ into it (or, more likely, because of it), even in this lower market, we would make a 28% profit given what the previous 2 coops (in lesser condition) recently went for.
Again, this is what is best FOR US; what might be best for you could be completely different. However, no one should say you CAN'T make a profit because plenty of us on this board are proof of the opposite.
Message edited 1/19/2007 10:38:12 PM.
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| Posted 1/19/07 10:37 PM |
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kently
LIF Zygote
Member since 5/06 7 total posts
Name:
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Re: Dilema- Purchase co op now, or wait to buy house
May I ask… how many people that you can occupy in a one bedroom apartment?
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| Posted 1/19/07 10:47 PM |
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Moehick
Ready for the sun!
Member since 5/05 30339 total posts
Name:
Properly perfect™
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Re: Dilema- Purchase co op now, or wait to buy house
Bought our co-op 3 years ago and already made $100,000 in equity! All hail the Co-op
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| Posted 1/19/07 10:50 PM |
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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 Leeners
Posted by Beth1210
Posted by Leeners
fix it up w/ a gorgeous new bathroom, kitchen, beautiful rooms, and yes, BUILD UP EQUITY. I would wager that those who are arguing that you simply cannot build equity in 2-3 years on a coop have never owned one.
DH and I bought ours 10.5 mos ago and if we sold it now (barring the obvious need to stay for 2 years due to tax implications), we would make considerable money on it even with the market the way it is. Just like with a house, you need to do your research, know the market, know the towns, etc. It's real estate - there are no guarantees, be it on a house, coop or an estate.
!
right- but you put even more money by renovating it- if you ultimate goal is to buy a house- other factors need to be considered-
I rent in a co-op building- thinking I would love it enough to buy one- I can't wait until 9/30/07 to run so far away from this place- and yes I live in once of the so called best ones in bay terrace
I have also rented in a coop building and in my situations, being an owner and a renter are very different experiences.
As far as the $ going into it... anyone considering a coop vs. a house is not buying a perfect house, it will have things that need to be done. by purchasing a coop, we're not house poor and we had more than enough $ to make it our own. And, despite putting $ into it (or, more likely, because of it), even in this lower market, we would make a 28% profit given what the previous 2 coops (in lesser condition) recently went for.
Again, this is what is best FOR US; what might be best for you could be completely different. However, no one should say you CAN'T make a profit because plenty of us on this board are proof of the opposite.
yeah if I owned - I would have to pay the extra money for the gas leak that we had 3 weeks ago- half my building still doesn't have a working stove
I have to go thru everything - except the approval process- so what's the point of the approval process if they are just going to rent to anyone that can afford to pay the rent?
I never told the OP not to buy a co-op - she asked for opinions- so I gave her mine- which has been influenced by the VP of a mortgage bank I am married too
my rent is still cheaper then it would cost me to buy the apartment I live in- which leaves me more money to save for what I really want- a house
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| Posted 1/19/07 11:00 PM |
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SupportACop
Momma's Boy & Lovin' it!!
Member since 5/06 2579 total posts
Name:
C
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Re: Dilema- Purchase co op now, or wait to buy house
Posted by alisonggg
personally (and obviously this is just my opinion) I would rather buy a small house over a condo or a co-op. I would save up till I had enough money for a small house.
Agreed! I have friends who bought a co-op the good thing is they are going to sub let which is a nice option down the line.
We were faced with the same challenges and price dilema when looking. So many times we thought we could NEVER afford a house. We had to pick a different area but it is beautiful and we are under contract now.
IMHO I would try for a house but again this is my opinion. I wish you luck in whatever you decided. GOOD LUCK!
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| Posted 1/20/07 9:41 AM |
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KLSbear
LIF Adult
Member since 1/06 1908 total posts
Name:
Karen
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Re: Dilema- Purchase co op now, or wait to buy house
I would try to find a condo over a coop if I were in your situation. I saw my MIL and her new husband both go through nightmares trying to sell their co-ops when they were looking for a place together. Both ended up having the co-op boards reject multiple buyers. The boards took weeks (or months) to get throught the approval/rejection process, and they'd have to start over again when a buyer was rejected, and they lost out on one place they wanted to purchase due to the delays. Her DH thought they had a done deal, only to have the board reject the buyer and it ultimately took him almost 2 years to get his place sold (and it was a really nice, large condo in Garden City). Her studio in Bayside took over a year to sell with a couple of rejected buyers as well. Both were desirable units in good buildings and locations - it was the buyers that kept getting rejected. I would NEVER want a co-op board controlling who could buy my place.
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| Posted 1/20/07 9:53 AM |
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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
Just wanted to add that we lived in our co-op for two years and when we sold it, had enough equity to buy our new house.
No, it's not a sure thing....but it certainly isn't impossible.
And as for the approval process....since you own shares in the community, I was happy to have people looking out for my best financial interests.
Having someone approve your buyer can work the same way - better chance of your buyer being able to afford buying from you.
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| Posted 1/20/07 11:48 AM |
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KLSbear
LIF Adult
Member since 1/06 1908 total posts
Name:
Karen
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Re: Dilema- Purchase co op now, or wait to buy house
Posted by Palebride
Having someone approve your buyer can work the same way - better chance of your buyer being able to afford buying from you.
They can reject your prospective buyer for all sorts of reasons though, and not tell you why. Yes, it's good for the other tenants, but MIL and her husband ran into issues like half the board being in FL so they couldn't interview the prospective buyer  , delaying the process, only to reject them when they were paying CASH!!! Never knew what the issues was but the bottom line was MIL and her DH ended up with about a 2 year delay in being able to sell his place so they could buy a new one together, over which time the prices continued to rise on the new one, they were paying two maintenance fees, and going through a lot of stress with the process. It's bad enough trying to close on a home sale in NY - IMO the added issues with coop board approvals is not worth it.
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| Posted 1/20/07 12:16 PM |
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rose825
Best Friends
Member since 6/05 10228 total posts
Name:
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Re: Dilema- Purchase co op now, or wait to buy house
I bought 4 years ago., put 10K into my co-op and could sell now for almost double what I paid.
I was able to use my equity to pay off 30K in credit card debt which are now almost completely paid off
I was alos able to then tax deduct the interest on that debt.
We do great at tax time, have reduced our debt, and have a great amount of equity.
I live in a nice place, and can still enjoy myself. I could never have afforded even a "small house" and if I did manage to do that could not have afforded anything else.
If you can not easily afford a house I think it is a great stepping stone. And I am on my co-op board so I know this co-op definately operates with the shareholders in mind.
PS- Even though I hate when something goes wrong (ie: no hot water) I LOVE being able to dial a number and have someone else fix it for me- no charge. 
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| Posted 1/20/07 12:20 PM |
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rose825
Best Friends
Member since 6/05 10228 total posts
Name:
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Re: Dilema- Purchase co op now, or wait to buy house
Posted by riniko
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.
I have heard that their dormering polciy is not completely legit and if you buy or renovate one you may have trouble selling (it is not assigned shares) just be careful.
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| Posted 1/20/07 12:22 PM |
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rose825
Best Friends
Member since 6/05 10228 total posts
Name:
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Re: Dilema- Purchase co op now, or wait to buy house
Posted by KLSbear
Posted by Palebride
Having someone approve your buyer can work the same way - better chance of your buyer being able to afford buying from you.
They can reject your prospective buyer for all sorts of reasons though, and not tell you why. Yes, it's good for the other tenants, but MIL and her husband ran into issues like half the board being in FL so they couldn't interview the prospective buyer , delaying the process, only to reject them when they were paying CASH!!! Never knew what the issues was but the bottom line was MIL and her DH ended up with about a 2 year delay in being able to sell his place so they could buy a new one together, over which time the prices continued to rise on the new one, they were paying two maintenance fees, and going through a lot of stress with the process. It's bad enough trying to close on a home sale in NY - IMO the added issues with coop board approvals is not worth it.
sounds like they didnt have a good board. I hope they were involved and went to every shareholders meeting. As a board member nothing makes me angrier than people who complian but never get involved (NOT saying this was the case with your parents).
I have done several interviews and have only rejected one, and that was because they clearly could not afford it. Yes the interview may be a PITA at times, but who wants to be living next to someone who is forced to illegally sublet , or has to be evicted or takes terrible care of your property. To avodi the selling problem make sure you specify to your realtor the rules of the co-op and that you choose a repsonsible buyer.
The fact is the more active the board, probably has a direct correlation to how much equity builds. I know we have struggled to keep maintenance the lowest around and our property values have soared because of it.
To the OP you have to do what is right for you. If you can afford a condo or house great.
If you cant a co-op can be a great options.
I know in 2002 I couldnt find a small house or condo for 120K and I dont know if you can find one now for 240K (the avg price of a 2br co-op). Good luck to you.
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| Posted 1/20/07 12:34 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 have to go thru everything - except the approval process- so what's the point of the approval process if they are just going to rent to anyone that can afford to pay the rent?
I guess all coops are different because in mine, the renters have to be approved. They go through the approval process every year. That is really unfair to the owners if the renters don't have to be approved.
on another note, I bought my coop a year and a half ago, and the same coops are now selling for 30,000 more than what we paid. My advice is, if you buy a coop make sure your payments are low enough so you still save your $$ every month bc you don't know what will happen to the market.
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| Posted 1/20/07 1:08 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Dilema- Purchase co op now, or wait to buy house
ok, for all of those who are saying "my co-op doubled in price", well if you owned a house the same thing would have happened so thats a moot point.
i think buying anything is a great idea- but in your situation if you KNOW you are going to move in 3 years, a co-op might not be a good idea - there are selling costs invloved, moving costs money and is a PITA.
I personally do not like Co-Ops - and no i never lived in one, but I never set myself on fire either, but I am smart enough to know that is a bad idea, so just because i never experienced something doesnt mean i havent done my research..I know people who own co-ops, i have underwritten mortgages for people buying co-ops, and i think that if you had the option, buy a condo instead.
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Message edited 1/20/2007 1:18:50 PM.
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| Posted 1/20/07 1:18 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 Meaghan729
for people buying co-ops, and i think that if you had the option, buy a condo instead.
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the only probelm with that is that condos are usually more expensive than co-ops, which is why co-ops are a better option for some people. When we were looking to buy, we looked at everything, and a co-op was the only thing we could comfortably afford.
I also think that a nice selling point for a co-op is that it is less expensive than a lot of the other options, so you might have an easier time selling it because of that.
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| Posted 1/20/07 1:22 PM |
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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
Posted by Beth1210
I have to go thru everything - except the approval process- so what's the point of the approval process if they are just going to rent to anyone that can afford to pay the rent?
Different co-ops have different rules. Some of them have to approve renters too. Some ( like mine) do not allow sub-letting.
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| Posted 1/20/07 1:40 PM |
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beachgirl13
Mommy to 3 boys!
Member since 5/05 4114 total posts
Name:
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Re: Dilema- Purchase co op now, or wait to buy house
I would look at both and see what appeals to you (and what you can afford.) We looked at co-ops, but then we decided to move further out -in Suffolk, where we grew up, instead of Queens, so we bought a small house.
Message edited 1/20/2007 2:00:22 PM.
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| Posted 1/20/07 1:59 PM |
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rose825
Best Friends
Member since 6/05 10228 total posts
Name:
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Re: Dilema- Purchase co op now, or wait to buy house
Posted by Meaghan729
ok, for all of those who are saying "my co-op doubled in price", well if you owned a house the same thing would have happened so thats a moot point.
i think buying anything is a great idea- but in your situation if you KNOW you are going to move in 3 years, a co-op might not be a good idea - there are selling costs invloved, moving costs money and is a PITA.
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I agree, but if you CAN'T AFFORD a house, then whether it would double or not means nothing. Sometimes you juts have to start somewhere and work your way up.
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| Posted 1/20/07 2:21 PM |
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Moehick
Ready for the sun!
Member since 5/05 30339 total posts
Name:
Properly perfect™
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Re: Dilema- Purchase co op now, or wait to buy house
Posted by Meaghan729
ok, for all of those who are saying "my co-op doubled in price", well if you owned a house the same thing would have happened so thats a moot point.
Not really...the whole point of buying a co-op, for us anyway, was that we did not have the $$ to put a downpayment on a house...we did have enough to put a downpayment on a co-op. Now we gained a tremendous amount of equity in a short amount of time and have more $$ then we could have ever hoped to put down on a 
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| Posted 1/20/07 2:47 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Dilema- Purchase co op now, or wait to buy house
Posted by Moehick
Posted by Meaghan729
ok, for all of those who are saying "my co-op doubled in price", well if you owned a house the same thing would have happened so thats a moot point.
Not really...the whole point of buying a co-op, for us anyway, was that we did not have the $$ to put a downpayment on a house...we did have enough to put a downpayment on a co-op. Now we gained a tremendous amount of equity in a short amount of time and have more $$ then we could have ever hoped to put down on a
you guys missed my point - i'll reiterate - the OP asked whether to buy a co-op or wait to buy a house - and people responded "well my co-op has gone way up in price" - all im saying is that houses did too, so thats not a benefit of a co-op vs a house
and if you further read my post - i asked whether she planned on staying in the Co-Op, bc if she stays for just two years, she probably wont make any $$ even if it does go up, bc of selling costs, etc.
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| Posted 1/21/07 8:47 AM |
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Leeners
:)
Member since 5/05 4898 total posts
Name:
Eileen
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Re: Dilema- Purchase co op now, or wait to buy house
Posted by Meaghan729
bc if she stays for just two years, she probably wont make any $$ even if it does go up, bc of selling costs, etc.
This is 100% UNTRUE. As Moehick said, she's been in hers 3 years and would make a hefty profit. I dare say that if you asked her this question last year, at 2 years, she would be able to say the same thing. I've been in mine 10 months and we would far more than make what we put into it, closing costs and all.
The point that us coop owners are trying to make is that if you cannot afford a decent house, a coop is a great option v. renting because rather than throwing away money renting, you're building equity toward a house.
You may not like it FOR YOU, but how can you say no, you're all wrong, you can't gain enough equity in a short term to even cover closing costs?? People are telling you that this is their actual experience; I'm not sure how you can possibly argue with that. 
ETS: I just reread your statement and you keep saying 'selling costs'. Are you talking about the Flip Tax? Most coops have moved away from this (mine doesn't have one; I pay all my own utilities except gas but that's just included in the maintainence). When I sell, the only 'fee' associated is my lawyer.
Message edited 1/21/2007 11:26:41 AM.
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| Posted 1/21/07 11:12 AM |
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