Girls who own (or have owned) co-ops

FH and I need to move if we want kids but we can't really afford a house right now and we're planning to leave the Island in 4 years anyway. We don't want to rent but we don't want to get stuck with something we cant' sell in 4 years either. Living in a basement ***** but paying more than $1400/month for an apartment complex is also ridiculous.

So here are a few questions about co-ops and if you have any other insider info, it would be greatly appreciated:

Do you get the tax deductions like with a house?
Are the maintenance fees ridiculously high?
Are they easy to sell?
Can you sublet to someone else if you want to rent it out?

Thank you ladies!

Re: Girls who own (or have owned) co-ops

Do you get the tax deductions like with a house? yes you do plus you get back a portion of what you pay in maintenance fee's. Each co-op is different but some are 35%-45%, many are 50% and sometimes you can get lucky and find a co-op that is 65%. Meaning you get that percentage back from the maintenance fee's you paid that year.

Are the maintenance fees ridiculously high? Again each co-op is very different and prices vary greatly. Norm I would say is $500-700 but theres also others with a higher maintenance fee. When I was looking I saw fee's for $900 and even one place we liked was $1200. The problem also with maintenance fee's that you have to keep in mind is that they can go up every year or every so often. From the time I moved into my co-op about 4-5 years ago until now, the maintenance fee has gone up about $300. So if you see a place with a very high maintenance fee already, remember it can get higher at any time so try to find something that is a bit lower so that if it does go up you still can pay off the montly fee's. The more amenities a building has the more the maintenance fee it can have.

Are they easy to sell? For the most part yes, where I live in the kew gardens/forest hills section, there are tons of co-ops and condo's and they are always being sold.

Can you sublet to someone else if you want to rent it out? You can but you have to wait 2 years to do so. This was the rule for my co-op and from what I've seen, most of them have the same rule. After you buy the apartment and live in it for 2 years, then you can rent it out to someone else.

Re: Girls who own (or have owned) co-ops

FH owns a co-op which is where we live so i'll tell you what i know bout our co-op building. we live in forest hills btw.

Do you get the tax deductions like with a house?
-i know that he deducts the mortgage interest on his tax return. he also gets the star rebate.

Are the maintenance fees ridiculously high?
-we have a 1 bedroom and our maintenance is a lil over $700 but our utilities are included. all co-ops are different though so it really depends on the building.

Are they easy to sell?
-apartments in our building are constantly getting sold fairly quick. i'm pretty sure co-ops are easier to sell then say a condo cause they're cheaper so the down payment is less and more affordable.

Can you sublet to someone else if you want to rent it out?
-in our building you have to live in the apartment for 2 years before you can sublet it but all buildings are different so you'd have to check with the co-op board.

Re: Girls who own (or have owned) co-ops

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Posted by MrsList09

FH and I need to move if we want kids but we can't really afford a house right now and we're planning to leave the Island in 4 years anyway. We don't want to rent but we don't want to get stuck with something we cant' sell in 4 years either. Living in a basement ***** but paying more than $1400/month for an apartment complex is also ridiculous.

So here are a few questions about co-ops and if you have any other insider info, it would be greatly appreciated:

Do you get the tax deductions like with a house?
Are the maintenance fees ridiculously high?
Are they easy to sell?
Can you sublet to someone else if you want to rent it out?

Thank you ladies!

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Echoing what the other ladies have said. I'm also in Forest Hills.

--same homeowner benefits except NO PROPERTY TAX! (its rolled into your maintenance)
My maintenance is 50% deductible.

--I think mine is on the high side, its $786 a month for a 650 sq footer, alcove studio. Plus another $130 for a parking spot (they come on the same bill).

-As far as selling goes, I haven't sold mine yet, but this is why its important to buy in a good building & neighborhood. Where I am, I'm pretty sure I won't have an issue selling (pool/doorman building with train & bus access into NYC), what i'm worried about is the board actually approving whoever I sell to. Your debt to income ratio has to be pretty low to be approved.

--My co-op allows sublets after you reside there for 2 years. Whomever you sublet to must be board approved.

Re: Girls who own (or have owned) co-ops

You also have to pay a flip tax when you sell.

Things to really look at when decided which building to buy in is the financial statments of the building. See when the last time they raised the maintenance and how often in the past they raised it. The more money the coop has the less likely they will access you. Also check on the flip tax amount. I have heard of extremely high ones.

Flip tax is the tax you have to pay to the co-op when you sell on the amount your sold your apt for.

I pay about $685 in maintenance for an 850 sq ft junior four.

Garden apartments tend to be less expensive then high rise buildings in the same area.

Re: Girls who own (or have owned) co-ops

FH and I are in the process of buying a co-op.

I know a portion of the maintenance is deductible b/c it includes real estate taxes.

Maintenance isn't bad - we have a 2 bedroom and it's $552 including all utilities except electric (even includes cable).

What else...hmmm, there's no flip tax. And we could sublet after 2 years of living there.

Re: Girls who own (or have owned) co-ops

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Posted by StacyJill2009

You also have to pay a flip tax when you sell.

Things to really look at when decided which building to buy in is the financial statments of the building. See when the last time they raised the maintenance and how often in the past they raised it. The more money the coop has the less likely they will access you. Also check on the flip tax amount. I have heard of extremely high ones.

Flip tax is the tax you have to pay to the co-op when you sell on the amount your sold your apt for.

I pay about $685 in maintenance for an 850 sq ft junior four.

Garden apartments tend to be less expensive then high rise buildings in the same area.

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not all co-ops have a flip tax.

Re: Girls who own (or have owned) co-ops

if the building has a mortgage on it, then the interest they pay that is prorated as part of your maintenance is also tax deductible. I am also in FoHi and pay about $550 for a 1-bedroom. I can sublet after living there for 2 years, but the co-op board has the right to approve who I rent it to based on their income. There arent' a lot of condos where I'm at so co-ops are the way to go.