Monday, June 9, 2014

Review of multifamily housing for sale::How to Get Real Estate Listings?







Review of multifamily housing for sale::How to Get Real Estate Listings?








There               are               three               ways               to               own               real               estate               in               the               United               States:               fee               simple,               condominium,               and               cooperative.

Fee               simple               is               the               most               common--               it               is               the               legal               method               of               owning               a               single               family               house               and               the               plot               of               land               below               it.

Condominium               owners               hold               the               right               to               the               interior               space               of               a               defined               unit               and               a               share               of               the               land               it               sits               on.

Cooperatives,               or               co-ops,               are               where               a               corporation               owns               the               entire               building               and               shares               of               the               corporation               are               sold               to               buyers.

A               person               who               owns               shares               is               entitled               to               occupy               a               specified               unit               within               the               building,               but               does               not               directly               own               that               unit.

Daily               life               within               a               co-op               is               very               similar               to               a               condominium,               but               buying,               selling,               and               subleasing               substantially               different.

House               cooperatives               are               largely               a               historic               relic.

The               legal               basis               for               owning               a               condominium               wasn't               established               until               the               National               Housing               Act               of               1961.

So               if               the               unit               you               are               considering               buying               is               inside               a               building               older               than               1961,               there               is               a               good               chance               it               is               a               co-op.

Even               though               most               new               buildings               are               condominiums,               cooperatives               still               have               their               uses               in               modern               real               estate               development.

All               fifty               states               have               laws               on               the               books               to               allow               cooperative               housing.

The               most               frequent               new               type               of               co-op               is               a               mobile               home               park,               where               residents               buy               a               share               of               the               land               and               gain               the               right               to               park               their               trailer               on               the               property.

Rental               apartment               buildings               that               lack               individual               utility               metering               are               frequently               converted               to               cooperatives               when               they               are               sold.

Co-ops               are               also               found               in               situations               where               the               building               does               not               own               the               land               it               sits               on.
               According               to               the               National               Association               of               Housing               Cooperatives,               1.2               million               Americans               live               in               cooperative               housing.

Co-ops               are               common               is               older               cities               like               Philadelphia,               San               Francisco,               and               Washington               because               there               are               many               buildings               constructed               before               1961.

The               largest               preponderance               of               co-ops               is               in               New               York               City,               where               85%               of               all               multifamily               units               are               owned               as               cooperatives.

Co-ops               are               also               found               in               situations               where               a               group               of               people               desires               communal               facilities               and               specialized               living.

Student               cooperatives               offer               inexpensive               housing               near               many               college               campuses.

Artists,               the               hearing-impaired,               and               elderly               individuals               have               also               established               co-ops               throughout               the               country.
               Co-ops               fall               into               three               categories:               full               market               rate,               limited               equity,               and               no-equity.

Full               market               rate               co-ops               are               similar               to               condominiums-the               shares               can               be               sold               for               whatever               the               market               will               bear.

Limited               equity               co-ops               restrict               the               resale               price               of               shares               to               enhance               their               affordability.

No-equity               co-ops               are               the               cheapest,               and               least               common,               of               all.

As               the               name               implies,               the               owner's               shares               cannot               appreciate               in               value.

It               is               important               to               understand               which               type               of               co-op               you               are               considering               buying,               since               lenders               usually               steer               clear               of               no-equity               and               limited-equity               co-ops.
               Mortgages               can               be               obtained               for               a               co-op.

A               primary               difference               is               that               a               buyer               must               select               a               lending               institution               from               a               pre-approved               list               maintained               by               the               co-op               board.

Banks               demand               that               the               co-op               board               sign               an               agreement               to               foreclose               on               the               owner's               shares               if               the               mortgage               defaults.

A               list               of               approved               lenders               can               be               obtained               from               the               co-op's               management               office.

"Share               Loans,"               as               co-op               mortgages               are               officially               known,               are               available               in               most               varieties               available               for               traditional               mortgages.

Purchasers               can               select               from               adjustable               rate,               fixed               rate,               or               hybrid               loans.

Because               of               the               added               risk               of               writing               a               co-op               share               loan,               rates               are               generally               .25%               higher.

Most               major               banks               have               gotten               into               the               co-op               mortgage               business,               so               buyers               should               be               able               to               find               financing               with               a               well-known,               reputable               institution.

A               20%               down               payment               is               required               for               a               co-op               mortgage.

Home               equity               lines               of               credit               (HELOC)               are               generally               not               available               for               co-ops.

Of               course,               a               monthly               fee               is               charged               to               owners               by               the               co-op               board               to               maintain               the               communal               property.
               There               are               several               advantages               to               purchasing               shares               in               a               housing               co-op.

Foremost               is               the               affordability               of               the               share               purchase               price.

Because               co-ops               require               a               large               down               payment               and               usually               cannot               be               subleased,               prices               are               generally               lower               than               a               comparable               condo.

Even               though               the               purchase               price               is               lower,               owners               can               expect               the               property               to               appreciate               at               the               same               percentage               rate               as               comparable               condos.

Co-op               owners               are               eligible               for               all               favorable               tax               treatments               available               to               other               real               estate               owners,               including               mortgage               interest               and               real               estate               tax               deductions.
               Cooperative               housing               has               other               financial               benefits.

Real               estate               taxes               are               almost               always               lower               than               condominiums               because               the               building               is               assessed               a               whole               instead               of               as               individual               units.

Imagine               there               are               two               identical               buildings,               one               of               which               is               a               co-op,               the               other               a               condominium.

The               condominium               is               comprised               of               10               individual               units               whose               value               is               $100,000.

Taxes               due               on               each               unit               come               to               $500               a               year               (or               5               mills).

The               co-op               is               assessed               as               one               big               piece               of               property               worth               $500,000.

Using               the               same               millage               rate,               the               building               owes               taxes               of               $5,000.

Divided               among               the               shareholders,               this               is               only               $250               a               year.
               Of               course,               there               are               drawbacks               to               co-op               ownership.

Many               co-op               boards               strive               to               keep               owner-occupancy               very               high               by               forbidding               or               severely               restricting               the               ability               to               sublease               a               unit.

Boards               can               also               implement               rules               that               condo               boards               cannot.

Examples               are:               owning               of               pets,               playing               of               musical               instruments,               and               the               number               of               nights               a               guest               can               stay               with               you.

Co-op               boards               can               also               block               a               sale               of               shares               for               any               reason.

Finally,               the               housing               corporation               has               final               say               on               disposal               of               the               property.

If               the               majority               of               shareholders               want               to               sell               the               property,               it               can               be               sold               over               the               minority's               objection.
               Buyers               will               find               that               housing               cooperatives               are               a               viable               option               for               them               to               live.

While               they               are               somewhat               nontraditional,               co-ops               fill               an               important               need               for               housing               in               older               cities               and               areas               with               high               cost               of               living.






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