Coop, Condo or single family house for newbies here in NYC?

Question

For a starters like me, should I go for a coop (cheapest here in NYC) or should I save more for Condos or even a single family house? Thanks for helping newbies like me!

Nathan A. · Answer

Many co-ops in New York tend to have rules that are restrictive, sometimes governing whether you can rent the unit out at all. This isn’t a function of the legal structure so much as just what co-op boards tend to decide. Do your homework on the rules of any building you are considering, co-op or condo.

Ned Carey · Answer

Coops and condos limit your choices, including the choice to rent. This among other reasons increases your risk. You have less control over costs when you own a condo or coop.

Damon Bodine · Answer

hey @Joseph Villanueva. it depends on your long term goals.  If you're looking to simply stabilize your housing cost than a co-op could be a good idea.  Take in mind most co-op's do require 20%+ down , have subleasing restrictions, and higher maintenance.

Condo to the above poster also occasionally have renting restrictions although thats not always the case.   Condos can be attractive to a first time home buyer because you can usually get to them with a much lower down payment.

Single Family -There won't be as much inventory as most of our housing stock is 2+ units.  That said in a 2 family scenario its a great opportunity to earn rental income day.

A lot of your strategy should be based on your longer term goals, budget, down payment, and location preferences.   An often overlooked part of the NYC housing market are community bank loans which are designed for first time home buyers.  They can offer lower rates, closing cost credits,  sometimes will eliminate the need for PMI etc.    I'm happy to brainstorm with you if helpful.  If we could go a little deeper on your unique situation than you can build your buying strategy from there.  NYC housing market is complex but very doable.

Abel Curiel · Answer

If you're looking to do little to no work throughout the length of your ownership, co-op (sublet friendly) or condo would be a good option to explore. Tons of inventory in some NYC submarkets which gives you many options and a better chance to negotiate a good deal.

One of the limitations with co-ops, however, is that the board can change the rules on subletting leaving you with a decision where you'd either have to sell or occupy the unit. Some co-ops also have a flip-tax which cuts into your bottom line when it comes time to sell. Lastly, Some co-op boards require board approval for any prospective

If you're ok with doing maintenance or hiring out for handy work, I'd recommend a small multifamily (2-4 unit) property. Here, you'll have more flexibility when it comes to making improvements or additions to the property. Income potential here is higher since you can also offer parking, storage, laundry and other amenities to the tenants for a premium rental amount.

Single family investing in NYC could make sense with a rent-by-room strategy.

Hope this helps!

Abel

Coop, Condo or single family house for newbies here in NYC?

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