co-op

I've been so excited about going into contract on our co-op and really feel that it's the best financial move for us at this point... but I just talked to someone who totally made me second guess our decision and said that the market is still going to go way down and that you can never re-sell a co-op.... I just lost my excited feeling..... those of you with co-ops presently or in the past, please make me feel better!!

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do you have to option to rent it out after a certain amount of time?

I know my brother says the co-ops in his development are not selling. But that doesn't mean it won't eventually.

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Don't feel down - I am sure that you made the right decision!!! I bought a co-op in June so I am in the same boat as you are - we are even starting to get estimates on redoing our kitchen!! No one should second guess your decision - it is really not their business. I definitely had people tell me how they would "never buy a co-op" and I just ignored them because I was confident that we made the right decision. I didn't buy my co-op thinking that I was going to double my money in a few years. I bought my co-op because we wanted a sound investment and a place to live! And saying that you can "never resell" a co-op is just nonsense!! You should be excited for your new co-op

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The rule is that we can rent it for up to 2 years in a 3 year period... so the way we figure, if we don't like the market when we're ready to move we can rent it for up to 2 years and then try again to sell.....

I think it's in a good location desirable in Mineola.... and it's 2 bed/2 bath and really quite big... I'd rather spend a few extra hundred a month on a mortgage than pay our landlord's taxes.... sigh... just a little down now...

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I hate when people say that you can never re-sell a co-op or say that its hard to sell. I don't find that to be true at all. We had to sell our co-op and sold it no problems. We have also known other couples that have had to do it and it went smoothly. Don't listen to anyone else. You are buying a piece of real estate- this is a great move!

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It really depends on where you buy - what you pay etc.

I am in a co-op now and will be selling it soon. The ones here sell if priced right fairly quickly as it is in a good town and the school district is very good as many of the older people also want to stay in town but not in their huge homes anymore so they move here.

When my family bought the place it was very inexpensive (1997) in fact the people we bought from said they took a large hit - as they bought when prices were up but they had to move and so they took like a 40,000 or more cut from what they paid. However the price is up considerably from where the prices were 10 years ago.

Honestly there is a good chance the prices might go down - will you be able to sell it sure - BUT it might take longer or you might take a hit - but at the same time it might still appreciate and you might not have any issues.

A general rule is that a house is a better investment - but many can't afford a house and you are better with some investment than just paying rent and throwing the money away every month. If you don't plan on staying long it is probably fine - to do until you can trade up.

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I sold my co-op in 3 weeks. Don't worry..it's the best financial decision you could make.

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thanks for the optimism.... we are hoping to be there about 5 years or so and using it as a stepping stone... read that the avg co-op appreciates about 3% a year while a house appreciates about 8%... in 5 years that'd be a nice return and we would have saved all the $ that we're throwing away on rent right now....i'm feeling slightly better

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I owned a co-op in a neighborhood where people would have to rent, or buy a coop. It sold within HOURS when I listed it.

We now have a 2 bdrm in Bayside, and they're selling. Ours is newly rennovated. I have no doubt when the time comes, this will go eventually. Perhaps not hours like last time, but shortly.

As far as the market dropping... they say that for Jan. If you're planning on being there for 5 years, I think that's to far in advance for anyone to know.

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We sold our co--op in a matter of weeks - no problem! And we made a nice profit off of it after only living there 2 years!
I don't understand why people have such a negative reaction towards co-ops! A lot of times, they are a lot more affordable for people, and therefore, easier to sell!
Congratulations!

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I wouldn't be concerned. There is always going to be a market for co-ops. They are the ideal way to start on the housing ladder and they are attractive to first time buyers.

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I live in Manhattan and we don't really have an option. 92% of available apts are co-ops, and they definately sell!

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When we bought our co-op we had a few comments come our way about not being able to resell. Not true. We knew that we couldn't turn it around immediately but that can be true with any property.

We planned to be there for 5 years (or more if necessary) and it worked out better than anyone could have expected.

The market heats up and cools down then heats up again. I think that you should be fine!!

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we were talking about selling ours, and spoke with a RE who sold 4 in our complex in the last year alone. she is working on selling 3 more. don't listen to everyone else! i think a lot of young couples look to buy condos and co-ops so they sell.
ETA - the RE thinks we can get about 25k more than we paid for it, only a year and a half ago.

Message edited 3/6/2007 10:02:49 AM.

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Be happy and go with your gut. If that is the best financially for you then do it. It was for me and so far I am very happy with my co-op.

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I love these absolute statements! You cannot say that you can never resell a co-op--lots of people do every day! Co-ops where I live were selling rapidly until the market took a dive this summer/fall (right when we put ours on the market). We have not been having much luck now, but sales are slow no matter what you own it seems.

It all depends on the market. If you plan to live in the co-op at least the next couple years, you should be fine.

This is really the most cost-effective alternative for a first home. Condos are great, but there are fewer of them in some areas, and they tend to cost more. I think people prefer condos, but then again, there are many people out there who want a first home and cannot afford condos, so I think there is a good potential co-op market also.

Do what you feel best about. If you feel in your gut that this is the place for you, go for it.

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this is something i heard happen to a friend. When she sold her co-op the board implemented a flip tax. meaning that since it went up in price she had to pay the corporation 40k

This was in NY. Not sure how common this is, that is the only thing i have heard about co-ops

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We closed on our co-op in October of 2003, so we have had it for 3.5 years. If we sell right now, we will make over 65K in a profit from what we bought it for to what we can sell it for now. So don't second guess yourself. Be happy you own something that is yours :)