"Can an international Buyers or Investors buy a property in a co-op?"
Co-ops are 80% or more of New York Real Estate. Co-op buildings are regulate by Co-op Boards, they make every decision about the coop building and set each coop house rules and policies. Co-Op board of directors would have to approve every potential purchaser.
International Buyers or Investors to buy an apartment in a co-op building are not easy for several reasons:
- Co-op purchaser approval takes weeks up to months -- and is a rigorous and far from easy process. The majority of co-ops only approve buyers with United States employment, United State income tax and good to excellent United State credit history minimum of two years. A Co-op does not need provide an explanation for a potential buyer's rejection by law.
- There are often restrictions on how much financing a buyer can use (for example, no more than a certain percentage of the unit price).
- Most of the co-ops restrict the right to lease apartment, which makes it unattractive to investors. Usually, co-op apartments can be rented out for 1 or 2 years after a certain number of years of owner occupancy, all the perspective tenants will have to be approve and interview by the coop.
- Co-ops has to approve your use of the apartment such as having staying guests or performing renovations.
- When selling (or renting it out when allowed) a co-op, the buyer will have to be approve and interview by coop, which reduces the number of qualified buyers and therefore reduces the price of your investment.
- Some coops does have "flip taxes" on the resale of a co-op to discourage speculators.
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Eileen Hsu 許雅嵐 (email: EHSU(@)elliman.com)
We specialize in Manhattan New York Condominiums, townhouses, condops and cooperatives. We are condominium residents ourselves so we understand the Manhattan New York condominium community. We also enjoy all Manhattan neighborhoods, especially Upper West Side, Lincoln Square, Midtown East, Murray Hill, Financial District, Chelsea, Fifth Avenue, Greenwich Village, Nolita and etc just to name a few. If you or you know someone that may be interested in selling, buying or leasing their Manhattan New York condo, call us today (917)837-8869 or (646)644-6929 and we can discuss your specific Real Estate needs in private. Thank you.
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