Is it a mistake to buy an HDFC coop apartment in Brooklyn?
April 22, 2010 11:54 AM Subscribe
I'm strongly considering putting in a offer on an income-restricted HDFC coop apartment in Brooklyn. I just straddle the income limits for 2009, but am well below it for 2006, 2007, and 2008, and the agent has assured me that won't be a problem, given the board an lawyer for this building (meeting the spirit of the regulations, if not the letter). I can afford to put down a large enough down payment so my monthly costs end up being slightly less than what my rent is now (with significantly more stability in cost from year to year). So I'm pretty sure this makes sense for me, but my only question is: is this a mistake in terms of eventually reselling the place?
posted by anonymous to Home & Garden (3 answers total)
It crossed my mind that with mortgage rates so low right now, and likely bound to be higher when I eventually sell (7 years from now? 15?), will the price at which the apartment can be sold likely drop in value as the cost of borrowing goes up, since the income restriction -- while pegged to the city's median income -- will still be in place and so there'd be a limit to any eligible buyer's purchase power?
The places I'm looking at are in a desirable neighborhood, so it has also crossed my mind that young adults with trust funds but little income would be eligible buyers. Should I be creeped out that selling eventually to one of them would follow the letter but not the spirit of the regulations?
For what it's worth, the income restrictions on these places range from 52k/year to 64.5k/year (which I do qualify for outright, even in 2009). (One agent said his building's restriction was above 70k, but he wouldn't tell me that number until I told him my income level, so I'm not sure I trust it.) These range from 1 to 3 bedrooms.
Thanks. (Anonymous for personal reasons.)