You have to be very careful with your calculations if you are buying a co-op as an investment property. There are a lot of important factors that needs to be taken into a consideration. The first one being co-op's sublet policy. Every co-op has it's own sublet policy. There are co-ops that do allow unlimited subletting, most of them after 1, 2 or 3 years of ownership. A lot of co-ops have maximum years allowed for subletting, or it can be something like every 2 out of 4 or 5 years. Besides the sublet policy there can also be additional sublet fees added to your monthly maintenance. Also every time you sign a lease with a new tenant, there can be one-time board package fees. So to answer your question, it is possible to find a co-op building where you can buy an apartment as an investment and rent it out, but always carefully review the building's sublet policy, the fees and look at the market in that area to have a good understanding of rental prices. If you need any further clarification with this question, feel free to reach out to me.
We are looking to purchase a condo in NY late in 2023. I have noticed that on condo listings they show property taxes and common charges. However on Co op listings there are no property taxes listed but the common charges are very high. Is this due to the taxes listed under the common charges?
Hi Tony. Since condominium is a real property, every apartment is taxed individually, and every owner is responsible for their own taxes. Co-op apartment is not considered a real property. Every apartment has a specific number of shares allocated to it. With co-ops, the whole building is a real property and has one tax bill. Every shareholder pays their portion of the whole tax bill according to the number of shares they own in a corporation. With condo listing you see the common charges and property taxes separate, with co-op listing you can see 1 bill, which is called a monthly maintenance bill. That payment also includes your portion of the real estate taxes. You can watch this video where I break down the exact carrying costs for condos and co-ops and the differences between them. ua-cam.com/video/60F9IGDQBrY/v-deo.html You still have time until end of 2023 to start the process, but feel free to reach out anytime, if you would like to talk about all the preparation it takes before even starting the journey. calendly.com/sargis_mosyan/30min
There isn't really any set timeline for buying in NYC. It all depends on what type of property you're looking for, whether it's all cash or financing, and what is the available inventory on the market. The apartment search step can be as fast as 1 week or up to 6 months or more depending on your search criteria and available inventory. Once you find the apartment, and have an accepted offer, depending on the terms of your offer and the property type, it might take up to 120 days to close or even more for certain co-ops. You can schedule a call with me by clicking the following link and we'll discuss your situation in more details. calendly.com/sargis_mosyan/30min
I read somewhere that buying in a small coop of no more than 10 units can be tricky. Do you know why? Is it harder to get a mortgage for units in small coops?
Small buildings whether it's a condo or a co-op can be tricky, because the lifestyle is different compared to living in a large building. For a lot of people living in a small building might not be the best option, so the size of the building is very important to take into a consideration. I actually did a video where I talk about all the differences between living in a small vs large building. This is the link. ua-cam.com/video/vxBKnGCETkI/v-deo.html If you have any questions feel free to contact me at sargis@corenyc.com Thanks for watching.
I like the information you give. Thanks
I am glad you found the video helpful.
Is it worth buying coop for investment purposes? Like to buy and rent it out?
You have to be very careful with your calculations if you are buying a co-op as an investment property. There are a lot of important factors that needs to be taken into a consideration. The first one being co-op's sublet policy. Every co-op has it's own sublet policy. There are co-ops that do allow unlimited subletting, most of them after 1, 2 or 3 years of ownership. A lot of co-ops have maximum years allowed for subletting, or it can be something like every 2 out of 4 or 5 years. Besides the sublet policy there can also be additional sublet fees added to your monthly maintenance. Also every time you sign a lease with a new tenant, there can be one-time board package fees. So to answer your question, it is possible to find a co-op building where you can buy an apartment as an investment and rent it out, but always carefully review the building's sublet policy, the fees and look at the market in that area to have a good understanding of rental prices. If you need any further clarification with this question, feel free to reach out to me.
We are looking to purchase a condo in NY late in 2023. I have noticed that on condo listings they show property taxes and common charges. However on Co op listings there are no property taxes listed but the common charges are very high. Is this due to the taxes listed under the common charges?
Hi Tony.
Since condominium is a real property, every apartment is taxed individually, and every owner is responsible for their own taxes. Co-op apartment is not considered a real property. Every apartment has a specific number of shares allocated to it. With co-ops, the whole building is a real property and has one tax bill. Every shareholder pays their portion of the whole tax bill according to the number of shares they own in a corporation.
With condo listing you see the common charges and property taxes separate, with co-op listing you can see 1 bill, which is called a monthly maintenance bill. That payment also includes your portion of the real estate taxes.
You can watch this video where I break down the exact carrying costs for condos and co-ops and the differences between them. ua-cam.com/video/60F9IGDQBrY/v-deo.html
You still have time until end of 2023 to start the process, but feel free to reach out anytime, if you would like to talk about all the preparation it takes before even starting the journey.
calendly.com/sargis_mosyan/30min
How long it generally takes to buy in nyc? If my lease ends end of next year when I should start looking?
There isn't really any set timeline for buying in NYC. It all depends on what type of property you're looking for, whether it's all cash or financing, and what is the available inventory on the market.
The apartment search step can be as fast as 1 week or up to 6 months or more depending on your search criteria and available inventory. Once you find the apartment, and have an accepted offer, depending on the terms of your offer and the property type, it might take up to 120 days to close or even more for certain co-ops.
You can schedule a call with me by clicking the following link and we'll discuss your situation in more details.
calendly.com/sargis_mosyan/30min
I read somewhere that buying in a small coop of no more than 10 units can be tricky. Do you know why? Is it harder to get a mortgage for units in small coops?
Small buildings whether it's a condo or a co-op can be tricky, because the lifestyle is different compared to living in a large building. For a lot of people living in a small building might not be the best option, so the size of the building is very important to take into a consideration. I actually did a video where I talk about all the differences between living in a small vs large building. This is the link. ua-cam.com/video/vxBKnGCETkI/v-deo.html
If you have any questions feel free to contact me at sargis@corenyc.com
Thanks for watching.