Co-ops on LI - a good investment? (Islip, Rochester: sale, apartment complex)
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I was born and raised on Long Island, and have lived here most of my life. I lived in Rochester for a few years right after college but moved back to LI in 2001. I have been a renter since I was living in Rochester - almost ten years now. Like many people, I often talk about leaving LI, but I doubt I will for a good five years yet, maybe more. As a single person on a salary just under 60K, I cannot afford a house, or even a condo (although I looked at a 2 bedroom house in Bayshore that was actually very nice and only 150K, but I think I would be in over my head with normal house maintenance and taxes). So for the past year I have been looking at co-ops, and found a nice one in Islip.
My question is, are co-ops a good investment? I know houses and even condos appreciate much faster, but I am so tired of renting and having nothing to show for it. If I pay a little more monthly than what I pay for rent in my current apartment complex, I could be owning. My concern is if I end up deciding at some point that I want to leave LI in less time, like 3-5 years. I am fine with breaking even, but I don't want to take a loss.
I really want to buy. I am tired of living in a complex where they keep raising rent, the superintendent is obnoxious and people don't care about whether or not they litter on the grounds/don't pick up after their dogs/spraypaint on the playground slide and jungle gym. Prior to my current complex, I lived in basement apartments - those are even more annoying. Everyone keeps telling me now is a great time to buy. I just want to make sure I am doing the right thing.
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In general a co-op is not really a great investment. There may be a few exceptions based on the location. Where exactly would this one be? If it is where I think it is, I would be very careful.
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Thank you for your reply. It is off of Union Blvd, in Islip proper. Would not a co-op be better than renting?
Here is my experience. Yes and No...here is why. Back in 2000, I bought a one bedroom completely renovated Co-Op in Valley Stream. New everything from floors to appliances...all I had to do was pick out my paint color. At that point the Co-Op had an ownership occupancy rate over 80% and rising. This is key in getting banks to approve a loan for a Co-Op. Also these renovated a apartments were being purchased from a sponser (basically someone who was basically "flipping" the apartments with the consent of the Co-Op Board). What was key, was that it meant I could buy with a down payment of 10% vs. 20%. The sale price was $59K! The mortgage and two-thirds of the maintenance was tax deductible. I ending up selling it in 2005 for over $140K...so it was worth it.
That being said, these are different times. The tax write-off is still beneficial, and because it's more difficult to get loans these days because of income/credit restrictions, a Co-Op might be the way to go. The downside is that a Board can make selling more restrictive and you usually need a downpayment of at least 20% to purchase a Co-Op. Hope this helps.
My friend bought a co-op in Islip about a year ago. Its located in a development called Forest Green. He loves it and it has proved to be a great investment. I have been there several times and I wish I could have bought for the price he paid. I guess it gets a bad rap b/c many years ago it was quite the hell hole, when it was rentals. But since live in owners actually live there its fine.
Which co-op were you looking at? There are several in this vicinity. And please do yourself a favor....before taking any advice from this forum go out and due your own investigating. Many people post comments without ever being or seeing what a place or neighborhood is like.
Quote:
Originally Posted by teenerz
I was born and raised on Long Island, and have lived here most of my life. I lived in Rochester for a few years right after college but moved back to LI in 2001. I have been a renter since I was living in Rochester - almost ten years now. Like many people, I often talk about leaving LI, but I doubt I will for a good five years yet, maybe more. As a single person on a salary just under 60K, I cannot afford a house, or even a condo (although I looked at a 2 bedroom house in Bayshore that was actually very nice and only 150K, but I think I would be in over my head with normal house maintenance and taxes). So for the past year I have been looking at co-ops, and found a nice one in Islip.
My question is, are co-ops a good investment? I know houses and even condos appreciate much faster, but I am so tired of renting and having nothing to show for it. If I pay a little more monthly than what I pay for rent in my current apartment complex, I could be owning. My concern is if I end up deciding at some point that I want to leave LI in less time, like 3-5 years. I am fine with breaking even, but I don't want to take a loss.
I really want to buy. I am tired of living in a complex where they keep raising rent, the superintendent is obnoxious and people don't care about whether or not they litter on the grounds/don't pick up after their dogs/spraypaint on the playground slide and jungle gym. Prior to my current complex, I lived in basement apartments - those are even more annoying. Everyone keeps telling me now is a great time to buy. I just want to make sure I am doing the right thing.
Thank you for your reply. It is off of Union Blvd, in Islip proper. Would not a co-op be better than renting?
That's where I thought you meant .
No. Please do not buy a co-op there. It is a very dangerous complex with Section Eights and all.
Thank you for your input. I must admit I find that very surprising, as I have been there many times during the day and at night (around 12:30-1 am) and it was very quiet. I also have friends at work that live in Islip (in houses, not in the co-op complex) that have driven by and spent time in the complex at night investigating on my behalf. Additionally, I know of several people (one at work, and two who are friends of friends) who have lived there for some time and enjoy it.
The section eights you are referring to - I assume they must be renters? I don't know anything about section eight, but I can't imagine anyone would be able to buy a co-op if they are section eight (especially with the 10% down payment that the board requires). Currently these co-ops are 95% owner occupancy, so I am confused as to how section eight individuals could be causing a problem. Thanks again for your response, and any additional insight would be appreciated!
My friend bought a co-op in Islip about a year ago. Its located in a development called Forest Green. He loves it and it has proved to be a great investment. I have been there several times and I wish I could have bought for the price he paid. I guess it gets a bad rap b/c many years ago it was quite the hell hole, when it was rentals. But since live in owners actually live there its fine.
Which co-op were you looking at? There are several in this vicinity. And please do yourself a favor....before taking any advice from this forum go out and due your own investigating. Many people post comments without ever being or seeing what a place or neighborhood is like.
Thank you for your reply. It is Forest Green that I am looking into. I began looking there last summer as well and since then they have added a little dog run, which to me is excellent. (Dog friendly is a big plus for me!) They have several one bedrooms available now. Since I cannot afford a house or a condo at this point, I figure a co-op is the next best thing. I live in an apartment complex in Holbrook now, but no one has any respect for anyone else (leaving trash all over), the superintendent is lazy and rude and the fees are ridiculous ($50 a month to have a dog!). Plus I can't paint or change anything unless I want to get charged for it when I move out. I have spent a lot of time looking at co-ops in Islip between last summer and this one, and I feel comfortable with the area and ready for the purchase. I just want to make sure the investment is sound, especially if I move off the Island in five years.
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" Charleston South Carolina"
(set 4 days ago)
Location: home...finally, home .
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I wasn't thinking of Forest Green , I don't think. The ones I meant are the apartments (and co-ops) across from the high school on Union Blvd. Maybe the ones you want are the ones that are further down and are more secluded . Those seem to be really nice and surprisingly affordable .
__________________ ******************
People may not recall what you said to them, but they will always remember how you made them feel .
Bottom line is that you get to write off your mortgage interest and a portion of your maintenance! money in your pocket! even a slight increase in value gets you your down payment back and then some when you sell! find a coop that DOES NOT HAVE A FLIP TAX and a reasonable board. A super tough board going in is super tough going out.
what do you get when you rent? a receipt and not even a thank you!
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