Mortgage & Maintenance Reserves

I think 2 years

I was on admissions committee at relatively nice Chelsea building from about 1997-2007, but it wasn't anything uber luxurious or white glove. We always looked for 2 years of reserves post-sale to "test" a buyer's financial wherewithall to own and maintain the unit without cause for worry. Not sure if UWS is somehow its own type of beast, but 2 years is not unusual around the city at many coops.

Typically it's 6 months.

Two years is insane, unless you're also counting their IRA.

so...i buy an apartment for $1 million, with monthly charges of $2,000. i put down $300 K; finance 700K at 5% or so. Annual carry costs of about $60K? It's insane to think that I still have $120 K ? or is it insane to think i don't?

I was thinking more along the lines of people buying $400K apartments.

Monthly carrying costs of $2700.

Insane to assume they'd also have $65,000 in the bank after closing.

so, i buy an apartment for $400 K, with monthly charges of $900. i put down $100 K, finance 300K at 5%. annual carry costs of around $25 K. crazy to have another $50 K?. of course not. why would someone put down more than 2/3rds of their liquid assets on an apartment in this environment?

"why would someone put down more than 2/3rds of their liquid assets on an apartment in this environment?"

Because that's the way Americans have been buying homes since the 1930s.

I don't know any building who is satisfied with just 6 months these days. Any addresses, NYCMatt?

Typically it's 1-2 years post-closing.