I want to buy a property but..

5 Replies

I want to buy a coop for my first property. What are the key things i need in order to carry out my first purchase? I do not have a lot of money saved up but want to buy a property ASAP. Any tips or advice? Thank you in advance

You don't need to start a thread. Educate yourself on this website. There are tons of articles, previous postings, webinars, podcasts and book recommendations. 

@Ji Hun Seo
I would stay away from a co-op as my first investment. Also save up before you buy. In today’s economic environment I would not want to over leverage.

Your question is so general that we can't possibly answer it. It's like asking, "What's a good restaurant in America?" Nobody can answer it because we don't know what you like, how many people in your party, do you want to dine in or out, what can you afford, etc.

A "coop" is an enclosure for chickens or other small animals. A "co-op" is a share in a company that owns the real estate which is similar to investing in stocks.

I recommend you start by reading some books and getting a basic understanding of real estate terminology and investing techniques so you can ask questions that make sense.

I would advise against a co-op being your first investment property. The co-op board has way too much control to make it work. They will likely require a very large down payment (if they allow investment properties at all) and will likely require a very large amount of liquidity post-closing. Not only that, they will require you to have the potential tenant interviewed and approved by the co-op board, which will likely mean you will go a few months without a tenant given the amount of paperwork they will need to put together to apply. All in all, co-ops can be a great way to buy a primary residence in new york city due to the cheaper price point than condos, but the red tape involved in the co-ops restrictions will likely make in not feasible.