Comments on: Coops and Condominiums in NYC http://english.martinvarsavsky.net/general/coops-and-condominiums-in-nyc.html Blog of an entrepreneur Mon, 13 Feb 2012 19:31:49 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Sergio Fogel http://english.martinvarsavsky.net/general/coops-and-condominiums-in-nyc.html#comment-18547 Sergio Fogel Thu, 26 Jul 2007 14:14:44 +0000 http://english.martinvarsavsky.net/general/coops-and-condominiums-in-nyc.html#comment-18547 There are some other interesting financing models. In France there is something called "reverse mortgage". It is catered to old people, whose main (or only) asset is their home. In practice, they stay to live in the house, and receive a monthly payment for life. The catch is that when they die, the bank keeps the property. Formally, you sell the house to the bank, which pays for it in lifetime installments, and rents it back to you for life. A strange scheme used in Bolivia is called anticretico. The owner "rents" an appartment to someone, but instead of receiving a monthly rental, he or she receives a large amount of money. When the apartment is returned, the capital is returned. There are some other interesting financing models. In France there is something called “reverse mortgage”. It is catered to old people, whose main (or only) asset is their home. In practice, they stay to live in the house, and receive a monthly payment for life. The catch is that when they die, the bank keeps the property. Formally, you sell the house to the bank, which pays for it in lifetime installments, and rents it back to you for life.

A strange scheme used in Bolivia is called anticretico. The owner “rents” an appartment to someone, but instead of receiving a monthly rental, he or she receives a large amount of money. When the apartment is returned, the capital is returned.

]]> By: Sergio Fogel http://english.martinvarsavsky.net/general/coops-and-condominiums-in-nyc.html#comment-18546 Sergio Fogel Thu, 26 Jul 2007 14:05:19 +0000 http://english.martinvarsavsky.net/general/coops-and-condominiums-in-nyc.html#comment-18546 I heard of some coops that do not allow children. When your first child is born you have a few months to sell. I heard of some coops that do not allow children. When your first child is born you have a few months to sell.

]]> By: Fernando López de Ayala http://english.martinvarsavsky.net/general/coops-and-condominiums-in-nyc.html#comment-18507 Fernando López de Ayala Thu, 26 Jul 2007 11:37:51 +0000 http://english.martinvarsavsky.net/general/coops-and-condominiums-in-nyc.html#comment-18507 Do your neighbors really ask you about your finances to make sure you can afford the expenses of your condo? Come on Martin, we all know about your finances and properties... <b>Ask them to read your blog! Do your neighbors really ask you about your finances to make sure you can afford the expenses of your condo?

Come on Martin, we all know about your finances and properties… Ask them to read your blog!

]]> By: Antoin O Lachtnain http://english.martinvarsavsky.net/general/coops-and-condominiums-in-nyc.html#comment-18489 Antoin O Lachtnain Thu, 26 Jul 2007 09:31:44 +0000 http://english.martinvarsavsky.net/general/coops-and-condominiums-in-nyc.html#comment-18489 The thing about the coop though is the way that it is geared. The coop has a mortgage that finances the building. As a result of this,when someone new joins a coop, the rest of the members are essentially going into business with him/her. I guess that justifies being a bit more careful. But the whole coop interviews thing seems like an occasion for sin. It is just too easy to enforce your prejudices against some unfortunate person, either by refusing to let them join (which actually isn't too bad) or by refusing to accept any of an existing members' prospective purchasers (which could financially cripple somebody). With any apartment, you aren't really buying real property. The square footage of actual ground you have an indirect claim on is tiny. You are essentially buying a share in a community, and the value of your apartment is going to be proportionate to the strength of that community. The thing about the coop though is the way that it is geared. The coop has a mortgage that finances the building. As a result of this,when someone new joins a coop, the rest of the members are essentially going into business with him/her. I guess that justifies being a bit more careful. But the whole coop interviews thing seems like an occasion for sin. It is just too easy to enforce your prejudices against some unfortunate person, either by refusing to let them join (which actually isn’t too bad) or by refusing to accept any of an existing members’ prospective purchasers (which could financially cripple somebody).

With any apartment, you aren’t really buying real property. The square footage of actual ground you have an indirect claim on is tiny. You are essentially buying a share in a community, and the value of your apartment is going to be proportionate to the strength of that community.

]]> By: andi http://english.martinvarsavsky.net/general/coops-and-condominiums-in-nyc.html#comment-18483 andi Thu, 26 Jul 2007 09:05:20 +0000 http://english.martinvarsavsky.net/general/coops-and-condominiums-in-nyc.html#comment-18483 The only alternative to renting in Sweden are "bostadsrätter", similar to NYC coops, but nowhere near as discriminatory. Getting approved by the board is usually just a formality as the discrimination that goes on in NYC would not be legal here. Still, you cannot rent your apartment without board approval (sometimes denied in my buildning) and you have to ask for permission for major renovations (almost always allowed in my building). But getting rid of someone that doesn´t follow other rules (like playing loud music after 23.00) can be quite difficult, the board has to go through the courts. About finances: people's salaries, net worth, etc is public information in Sweden (MAJOR culture shock for many foreigners) and very easy to obtain. Everybody knows everybody else's salaries but I doubt boards check as it is be easier to get rid of somebody that doesn't pay the monthly expenses than to deny someone membership. The only alternative to renting in Sweden are “bostadsrätter”, similar to NYC coops, but nowhere near as discriminatory. Getting approved by the board is usually just a formality as the discrimination that goes on in NYC would not be legal here. Still, you cannot rent your apartment without board approval (sometimes denied in my buildning) and you have to ask for permission for major renovations (almost always allowed in my building). But getting rid of someone that doesn´t follow other rules (like playing loud music after 23.00) can be quite difficult, the board has to go through the courts.

About finances: people’s salaries, net worth, etc is public information in Sweden (MAJOR culture shock for many foreigners) and very easy to obtain. Everybody knows everybody else’s salaries but I doubt boards check as it is be easier to get rid of somebody that doesn’t pay the monthly expenses than to deny someone membership.

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