I am noticing more and more "younger", generation Y - as people call it, looking to buy real estate. They call me up all gung ho - ready to be an adult and buy their first home. Most of the Y's get a bit of sticker shock and they become scared. Don't be scared. Here are a few affordable options of real estate that you can buy.
Co-ops - What are they?
A co-op is a cooperative setting. Meaning the units can either be garden apartments (two story buildings) or an apartment in a building. Either way, the owner of the apartment does not own the apartment - they own shares in the stock. With each co-op the amount of shares vary.
- Most 1 bedroom co-ops in the 11357, 11358, 11364, 11361 area range from $125,000 +.
- Most 2 bedrooms co-ops range from the 185,000 + range.
The shareholder pays for maintenance, which includes taxes, maintenance on your grounds, garbage pickup and some boards have all the utilities included (this varies). The maintenance along with your mortgage is usually 40-50% Tax deductible.
The applicant must be approved by the board of directors in a co-op. This can be very nerve wrecking for any purchaser. You must be able to disclose ALL your income and debt on paper to the board - before you even get to have a face to face with the "directors" and up until recently, the board was able to deny you with no rhyme or reason.
The benefits of owning a co-op:
- Any clogs or back up in plumbing you can call the maintenance - they will fix it.
- Windows, boilers and leaks within apartment is to be taken care of by the co-op.
- Stoops, walkways and parking lots - taken care of by the co-op.
- Snow removal, garbage pickup and bulk pick up - taken care of by the board.
- Pay one maintenance that includes taxes, sometimes homeowners insurance, and salary to maintenance men.
- Share holder does not have to maintain grounds.
- Board maintains and repairs everything in hallways and exterior of building. Low maintenance for shareholder.
- Cheaper to buy into.
- Some co-ops you can sublet (Could also be a negative).
Negatives of co-ops:
- Board sets the rules. (Sets policy on pets, subletting and requirements).
- Higher maintenance, which only goes up - never goes down.
- Harder to buy into - applicant MUST meet board requirements.
- You do not own real property.
- Higher requirements for down payments.
- Must have board approval before buying.
Some of the more popular co-operatives:
· Alley Pond Garden.
· Bay Terrace the Sections.
· Bay Terrace.
· Baydale Garden.
· Bell Park Garden.
· Birchwood (Americana, Versailles and Seville).
· Clearview Garden Apartments.
· Cloverdale Garden Apartments.
· Cryder House.
· Cryder Point.
· Estates of Bayside Garden.
· Kennedy Quad.
· Leharve Owners Corp.
· New Windsor Park.
· Rocky Hill Terrace.
· Windsor Oak Garden.
· Windsor Park and,
Towers at Waters Edge.
When you start your search, it is important to know what you can afford, how much you have to readily put down and what you are qualified to buy. By knowing this you can 1.) narrow your search down, and 2.) be a valid "shopper". Keep in mind that each one of the co-ops that I named all have different board requirements, so it is a good idea to talk to your Realtor (me) about which ones will suit you.