Real Estate Guru's

[biglouie250]

looking to buy a condo or something next summer. just doing a bit of research, and ive found that for the most part equal sized co-ops are cheaper then condos. now i know the differences between the 2 and the advantages/disadvantages of owning either, still looking at the tax implications though. do the disadvantages of buying a co-op as opposed to a condo drastically reduce the price that much? ive seen condo and co-op developments in the same town/area, same number of BR's, baths, total space, built within 10 years of each other etc......and the co-op is sometimes 50-70K cheaper. thats a lot of cash!! Im looking at condos/co-ops in the 240k price range just to give you a basis to form conclusions.

1 BR condo, in one town was 300k, same town co-op same style was 235k.......

is there something else im not thinking about that seems to reduce the prices of co-ops vs condos?

[G-1000]

Try and stay away for co-ops. Dealing with the boards can be a real pain in the ass. They are also hard to resell get mortgages or to refi.

[biglouie250]

Try and stay away for co-ops. Dealing with the boards can be a real pain in the ass. They are also hard to resell get mortgages or to refi.

yea that is def a disadvantage. but i was also thinking that since you need board approval to buy a co-op it would keep out weirdos, no?

i wish i could afford a condo, but i cant see spending 300k on a 1BR condo........ thats the cheapest in my area lol. its sickening! saving 70k to deal with some shit may be the route i have to go.

[G-1000]

Cooperative
The main difference between condominiums and cooperatives lies in the specifics of ownership: if you own a co-op, you do not own the unit itself. Instead, you own a share in the cooperative corporation. This share gives you sole right to your living space, but it does not give you ownership of it. For this reason, your real estate taxes may be covered by your co-op membership, because the building is taxed as a whole. Co-op members pay a monthly fee to the corporation, which, like the condo association, maintains the building and all shared spaces and handles daily management tasks. A co-op is generally stricter about screening prospective buyers and has more say in the handling of your own unit. Also, a co-op may be more difficult to finance than a condominium, because co-op corporations may only deal with certain banks.


Condominium
Like townhouses, condominiums are attached to one another. If you own a condo, you do not own the land surrounding your living space. A condo owner owns only the unit itself, which is taxed as an individual entity, and sometimes a percentage of the common areas of the community. Condo communities may provide such shared facilities as a pool, gym, tennis courts and clubhouse, all maintained by the condo association, which takes care of all day-to-day management tasks. This is one of the key advantages of condo living -- all of the joy of using the amenities, none of the hassles of maintaining them. Condominium owners pay a monthly fee to the condo association, which also sets the rules for the community.



Townhouse
A townhouse is like a house in that the owner owns both the structure and the land on which it sits; but it is not free-standing, so "the land on which it sits" is limited to the front and back yards. Townhouses are connected to one another in a row, and are usually two or three stories tall. They share many of the characteristics of condominiums.

[G-1000]

yea that is def a disadvantage. but i was also thinking that since you need board approval to buy a co-op it would keep out weirdos, no?

i wish i could afford a condo, but i cant see spending 300k on a 1BR condo........ thats the cheapest in my area lol. its sickening! saving 70k to deal with some shit may be the route i have to go.

Trust me i know how you feel. It sucks trying to buy a home now a days. But a condo will be yours to do what you like with.

[G-1000]

If you have 70k to put down that would give you a loan of 230k. 230k for 30 years at 6.5 if you have good credit. would be $1450 a month just for the mortgage. That is an P/I loan.

[G-1000]

This is a good sight to look at when buying a home. www.myfico.com

[StoneGRMI]

Trust me i know how you feel. It sucks trying to buy a home now a days. But a condo will be yours to do what you like with.

A condo is more so yours than a co-op but even before buying a condo you must have your realtor and maybe even a lawyer look over the association rules and guidelines. Many of times I've seen people get mad about what they can and cannot do to their own condo but which in fact (at least in the state of Michigan) when you buy the condo you do not necessarily own the walls/floors/etc you own the "air within the property" which really entitles you to put whatever kind of floor or paint down but you cannot perform any construction outside of what your agreement lets you. Also look at your association fees. I have not seen association fees lower than $120 a month in my area besides on low-income condos/housing.

[biglouie250]

If you have 70k to put down that would give you a loan of 230k. 230k for 30 years at 6.5 if you have good credit. would be $1450 a month just for the mortgage. That is an P/I loan.

im 24, i wish i had 70k to put down lol!!!! im going to be spending like 10k on ring next year....saving a ton by next year isnt in the cards. its my gf's home life that is sort of rushing this along. she has it shitty at home and i need to get her out of there. i cant see renting a place for 1300/month(thats what 2 person rentals go for around here) when i can buy something for a few hundred more and build equity.

[G-1000]

A condo is more so yours than a co-op but even before buying a condo you must have your realtor and maybe even a lawyer look over the association rules and guidelines. Many of times I've seen people get mad about what they can and cannot do to their own condo but which in fact (at least in the state of Michigan) when you buy the condo you do not necessarily own the walls/floors/etc you own the "air within the property" which really entitles you to put whatever kind of floor or paint down but you cannot perform any construction outside of what your agreement lets you. Also look at your association fees. I have not seen association fees lower than $120 a month in my area besides on low-income condos/housing.

This is true some townhomes are like that also. Shit i even knoe of some towns that will not let you paint your home the color that you would like.

God i wish it was 1955

[StoneGRMI]

Living in a brown and white wooden townhome? Hehe. There are still some of those around here too.

[G-1000]

im 24, i wish i had 70k to put down lol!!!! im going to be spending like 10k on ring next year....saving a ton by next year isnt in the cards. its my gf's home life that is sort of rushing this along. she has it shitty at home and i need to get her out of there. i cant see renting a place for 1300/month(thats what 2 person rentals go for around here) when i can buy something for a few hundred more and build equity.

Keep in mind if you dont have 20% to put down on any kind of hime. you might have to pay PMI on the loan amount. If you have good credit you can avoid paying PMI by getting an 80 20 loan. That is a first mortgage at 80% and a 2 at 20% no money down. there are other you can get also the is just most comin.


Ya i did the ring thing also. That was a killer

[G-1000]

Hey bro i can not stress the enugh. Credit will play a huge roll in what you can afford. Take a look at this sight there is a lot of great info.

http://www.bankrate.com/brm/news/cre...20031104a1.asp

[biglouie250]

thanks man. my fico credit score is 744, so i dont see credit being an issue next year, as it will only rise this year as i continue to pay bills on time. i just spoke with my friend/realtor/mortgage guy and he was talking to me about an interest only mortgage where youd only pay the mortgage interest for the 1st ten years, and then the mortgage increases after the interest only portion is complete to cover the principal. he said the advantage is that im not staying in the condo/co-op for more then 5 years, which he's right, so id never see that step up in mortgage price. and even if i did id be making a ton more cash to cover that. at the prices i was looking at id save 200-300/month for the first ten years.

as for the down payment. citcards(my credit card) offers the ability to write yourself a check at a 1.99% rate for the life that the "loan" is outstanding. so if im short of the DP by next year i can take out cash at a small rate. i might just take out extra, put it in an ING CD earning 5%.....

[G-1000]

when it comes to doing ll this with good credit like you have there is 100 way it can be done.

[PROTEINSHAKE]

since you are young the interest only loan isnt a bad way to go for the time being to get you in..BUT when things improve financially..convert it to a conventional mtg. If you hangin at NEPTUNES for the summer...you live somewhere by me & I know--real estate is expensive here brother. thank god I bought my house 6yrs ago.Its worth 3x what I paid now.

[biglouie250]

since you are young the interest only loan isnt a bad way to go for the time being to get you in..BUT when things improve financially..convert it to a conventional mtg. If you hangin at NEPTUNES for the summer...you live somewhere by me & I know--real estate is expensive here brother. thank god I bought my house 6yrs ago.Its worth 3x what I paid now.

exactly. id rather struggle for a year or 2 but have an interest in something that will increase in value rather then dumping money in the toilet and rent. I live in Nassau. im looking in the bethpage, wantagh, massapequa area....... i used to think that a 100k combined income would be enough to buy and run a home with the ability to save and spend a little. Im going to up my figure to the 150K mark lol!! but im young and a condo/co-op is a better choice for me at this point in my life. Ill buy a home at age 27.....

[THE_DOME]

geese i just bought a house in a decent size city for 95k its small but i am building equity its 1100 square ft and two bed one bath, just shows the cost of living in different areas of the world

[PROTEINSHAKE]

to give you a reference here in the NYC area & suburbs....anything that you want to live in or near is AT LEAST 450grand & property taxes are AT LEAST 5grand....WELCOME TO THE JUNGLE!!! Its a goddam miracle I got money for gear HAHA

[biglouie250]

to give you a reference here in the NYC area & suburbs....anything that you want to live in or near is AT LEAST 450grand & property taxes are AT LEAST 5grand....WELCOME TO THE JUNGLE!!! Its a goddam miracle I got money for gear HAHA

not to get off topic but i bet you love that mortgage interest deduction and Real Estate tax deduction!!!! hopefully bush's term will run out before he tries to get rid of that!! he thinks that will stabilize property costs. i think it woould lead to mass hysteria and recession here on Long Island.

[PROTEINSHAKE]

if it werent for that deduction i wouldnt be where I am-that & my "aggressive" accountant. yeeaaaa. I agree with ya.I have a cash biz so thats ok too

[Anabolios]

since were on the subject of real estate...im just shy of twenty years old and ready to buy my first piece of real estate...im looking for a fixer upper because im good with most flooring,paint,drywall,siding,etc. jobs im looking to spend 100,000 and mortgage 70k i need a 5% interest rate or lower though shhieeett ill get it i hope =\ ok done talking sorry bye

[biglouie250]

since were on the subject of real estate...im just shy of twenty years old and ready to buy my first piece of real estate...im looking for a fixer upper because im good with most flooring,paint,drywall,siding,etc. jobs im looking to spend 100,000 and mortgage 70k i need a 5% interest rate or lower though shhieeett ill get it i hope =\ ok done talking sorry bye

show me where i can find a 5% mortgage

[Anabolios]

show me where i can find a 5% mortgage

in my state going rate is about 7 percent...through some state thing if you qualify with moderate income 60k and below and dont own any real estate you can qualify i fit all of the requirements