Re: coop, condos & townhouses

Re: coop, condos & townhouses

We've had a positive co-op experience also. We are probably going to start trying to sell soon, so I'll let you know then, lol, but we love it.

We had no problem buying in 2007 - didn't have to do 20% and our bldg's mortgage is paid off so it was easily approved. Our maintenance is the lowest in our town ($700 for a ~1,300 sq ft 2 bedroom 2 bathroom with terrace and parking spots). Maintenance is $1,100 in other bldgs in the town for 2 br, 2 bath units, so I think we got a steal :) The only other bill we pay is phone/cable and electric, so our maintenance includes everything else. Walking distance to LIRR. Desirable neighborhood b/c of proximity to NYC.

I think you just need to consider resale value and convenience and if you are going to need to make a big profit in order to move on. If you are going to need to sell for much higher to make your next down payment, I probably wouldn't go with a co-op again, but this totally made sense for us at the time and I still think it was a good investment.

We refinanced over the summer and were pleasantly surprised to see that even in this economy it appraised for significantly more than we paid :)

Message edited 2/15/2010 11:25:46 AM.

Re: coop, condos & townhouses

I bout my co-op in 1998 when prices were low and so were the mortgage rates. There are very limited number of condos in my area of Queens. The purchase price of a condo rivaled that of a home when I was looking.
My co-op is in a garden complex. I have the upper unit (with a huge attic).
My maintenance includes : water, electricity, heat, 3 wall air conditioners that I can run year round, 1 dishwasher, 1 parking spot, 1 garage. Private sanitation so we do not keep our own garbage pails outside or units. The cost is very reasonable. There are no pools or elevators or gym rooms to maintain. Since part of my maintenance pays for the corporation's property tax, I get to take a deduction when filing my taxes.
Between paying the maintenance and mortgage, I pay way less per month than I would for a comparable sized rental.

When looking for a co-op, make sure that the co-op's finances are strong - how often is base maintenance increased, how often are assesments charged, does the corporation itself hold a mortgage. VERY IMPORTANT - does the co-op own the land under the buildings or is it a land lease.
What is the condition of the buildings and the outside areas like parking, laundry.

Good luck with your search.