A co-op apartment is a unit in a building that is leased exclusively to the person who purchases it. Buying a co-op apartment is different than buying a house. Instead of actually buying the property where you live, what you are doing is buying into a corporation, usually a limited liability corporation (LLC) that owns the building (purchasing shares vs a title). Once you purchase these shares you can live in the apartment as your primary residence, but there are restriction for renting and selling. Generally there is a monthly maintenance fee/common charge that covers costs like taxes, underlying mortgages, building & common area maintenance, monies allocated for capital improvements/expense, and some shared utilities.
A co-op apartment, and every other apartment in a building, is subject to the bylaws the corporations establishes. The board can have deciding power over whether or not you can buy a co-op apartment, and deny or approve your right to rent. The board also must approve any person to whom you wish to sell your co-op.
What is an HDFC Co-op? HDFC stands for 'Housing Development Fund Corporation'. HDFC's are much more affordable housing than traditional Co-op's and Condo's in NYC. Read more about it here: http://ezinearticles.com/?HDFC-Coops---The-Best-Deal-in-New-York-City-Real-Estate?&id=2267922
HDFC vary from traditional Co-ops in that the potential owner must meet income restrictions and intend to live in the unit. In determining if an HDFC co-op is right for you, please ask yourself the following:
1- Am I interested in purchasing real estate in Manhattan at 40-60% lower prices than the average condo/co-op?
1- Am I looking to live in the apartment for 5+ years?
2- Do I make less than 120% of median income level?
(1 person - $96,240, 2 persons - $113,563)
3- Do I have solid finances, and a 10-25% down payment accessible?
4- Would I like to have the benefits of owning versus renting and put money towards equity in my home?
5- Would I like to take advantage of record low interest rates?
6- Would I like to be a part of co-operative housing and possibly participate on the board?
If you answered YES to the questions above you are an ideal candidate for a HDFC co-op!
Particular restrictions that apply to this HDFC co-op:
1- Income restriction 1 person - $96,240, 2 persons - $113,563
2- 30% of profits on resale to the Co-op (example, you purchased $250k and sold $350Kk, for a profit of $100k, $30k to the co-op)
3- 18 month maximum lease available during 5 year period of ownership, tenant subject to Board approval.
For additional information regarding co-op's please visit: http://www.manhattanapts.com/coops-condos.html
