Considering making a cash offer in condo with less than 50% owner occupancy

Is this is Manhattan? Wburg? LIC? makes a difference. If you are getting 400 psf in manhattan that would mitigate some risk. In LIC? not so much. but there is always risk in under 50% occupancy.

near 181st St station, west of Fort Washington Ave

Well...apparently nsp and edge do not care if you have cash or not, so it gives no additional leverage, at least that is what they say. Where are condos where this makes a difference?

Also, what was the original price asked? What have other contracts actually been signed at? Is it occupied?. Complete?, etc..because it would seem all that effects the actual risk you are taking. Finally - what price would a manhattan condo have to fall to to make you wish you had waited to buy in manhattan lower down?

Condo??? I live on Fort Washington at 185th, and have been looking at apartments in the neighborhood for a while now. There is only one condo west of Ft Washington at Cabrini and 187th and there are no units currently for sale (only units in contract). So do you mean coop? Or is there a condo that I am not aware of???

jim, buying lower down is what I prefer but haven't seen anything I liked in my price range.

ynotie, should have typed coop. You are looking to buy in the area? Do you think resale value will be there in years to come?

We were looking more seriously about a year and a half ago, and are now just keeping an eye on things in case there is a great opportunity. Back when we were more serious, we were considering making on offer on a nice one bedroom at 200 Pinehurst. VERY glad we did not make the offer as prices in the neighborhood have dropped significantly since then. In 2007, the river view 1 bedroom apartments along Cabrini blvd and Chittenden ave were asking 475-550K-ish. Now, there are units in castle village asking only 375! There were two nice units on the market for below 400K on chittenden recently (direct river and palisades views), but both were pulled from the market after price drops(never went to contract). These prices are less than the NON-river view apartment on which we almost bid.
I think I know the building you're looking at. We looked at apartment at 854 181st, where the Corcoran broker was telling us about his coop down the block. They had to go to court to keep their coop status, which they almost lost due to the occupany <50%. They apparently won the case, but I'm surprised the occupancy hasn't crossed the 50% threshold since then.
I'm of the opinion that the neighborhood will do very well in the long term (as in the 10yrs you mentioned), but may still have a sizable distance to fall in the short term (next 2-3 years)...but I'm no expert.
Just check the subletting rules of the coop. I haven't looked in that specific building, but those in the hood at which I have looked had 1 or 2 year minimum use as a primary residence before allowing sublets. Best of luck either way!

OOPS...lost a chunk in the post above...here it is in full:

We were looking more seriously about a year and a half ago, and are now just keeping an eye on things in case there is a great opportunity. Back when we were more serious, we were considering making on offer on a nice one bedroom at 200 Pinehurst. VERY glad we did not make the offer as prices in the neighborhood have dropped significantly since then. In 2007, the river view 1 bedroom apartments along Cabrini blvd and Chittenden ave were asking 475-550K-ish. Now, there are units in castle village asking only 375! There were two nice units on the market for below 400K on chittenden recently (direct river and palisades views), but both were pulled from the market after price drops(never went to contract). These prices are less than the NON-river view apartment on which we almost bid.
I think I know the building you're looking at. We looked at an apartment at 854 181st, where the Corcoran broker was telling us about his coop down the block. They had to go to court to keep their coop status, which they almost lost due to the occupancy being below 50%. They won the case, but I'm surprised that they haven't crossed the 50% threshold yet.
Just be sure you know the building's sublet policy. I haven't looked in that specific building, but those in the hood at which I have looked had 1 or 2 year minimum use as a primary residence before allowing sublets. Best of luck either way!

Gutsiest move I ever saw man

Chris
I have been a realtor since 1972 and have seen 4 of these markets and losses of property values. This one was the deepest and most widespread but mostly limited to the coasts, east and west. If you truly believe you will hold the unit for 10 years, historically speaking, even in this downturn, which by the way we are pretty much through i believe, properties bought ten years ago are still worth significntly more than they were then. Those are stats that you should be able to confirm.
Good luck

whoops...is phoenix on the coast?

or las vegas? is that on a coast?

moron. borker.

What's the matter columbiacounty, were the drinks not strong enough?

Did you stay sober in sympathy of your sister aboutready and whatever she "caught from the toilet seat"?

OK so I forgot about Phoenix and Vegas. Those markets were supported by buyers mostly from California, and both of those markets are improving. But my point is still the same. A 10 year time frame starting in this type of market historically has resulted in significant increases in value.
Isn't this supposed to be about helping Chris T not insulting eachother?

so you forgot?

insulting each other?

you're insulting everyone here; you said "most widespread but mostly limited to the coasts, east and west."

except for the unfortunate face that phoenix and las vegas were down hugely and are not on any coast that we know of.

whoops...i was wrong about everything but i'm still right?

that's outrageous.

but...you're a borker.

hey riversider: stfu.

"Chris
I have been a realtor since 1972 and have seen 4 of these markets and losses of property values. This one was the deepest and most widespread but mostly limited to the coasts, east and west. If you truly believe you will hold the unit for 10 years, historically speaking, even in this downturn, which by the way we are pretty much through i believe, properties bought ten years ago are still worth significntly more than they were then. Those are stats that you should be able to confirm.
Good luck"

Best part is, this genius doesn't get that this recession is *already* longer and deeper than anything he lived through. Hell, the guy basically has no experience outside of the biggest RE bull market in history. So of course his perspective would be horrible.

I wouldn't listen to brokers for RE market advice, let alone economic cycle advice. Remember, these were the morons telling folks to buy 2-3 years ago.

chris--

I have been a dumb fuck since 1972 so listen closely as i give you some stupid, useless advice.

Hoping 30yrs will pitch in.