Hdfc flip tax

Every HDFC building is different. Talk to owners in the building and get a sense of their views of the building and building management.

Would this make the building more appealing to buyers?

Already priced in.

Alanhart priced in to asking price?

No, asking price is meaningless. An asking price doesn't even need to be numerical.

It's already priced into whatever you or anyone else would be willing to pay right now.

So what's your thought on hdfc?

The problem with many HDFC's for sale is that the asking price is dramatically out of line with the income restrictions. With that said, there are some HDFC buildings where asking prices are reasonable to income limits and the buildings are generally well run. When an apartment comes to market in one of those buildings- watch the first open house...it will be a madhouse and there is likely to be several offers within the first week or two.

Flip taxes do not make a building more appealing. In fact, they make the far less appealing. When you sell, do you want to give a massive tax to the coop?

Also, they create volatility in the revenue base of the coop, since sales volumes are different each year.

Which is another way of saying that if flip tax is eliminated, maintenance must increase to fill the gap.

Good input thanks, anything else just trying to educate myself about hdfc.

Another question do hdfc follow the same income restrictions and if not, how is that determined?

Generally speaking an HDFC will generally use a percentage of the NY area median income (NY AMI) and number of family members in the residence as a guideline for the income restrictions. The percentage varies building by building- and while I have seen some buildings use a percentage as low as 40% of the NY AMI, I am seeing more and more use 120% or 165%. Some buildings do not use the AMI at all - and instead use some other types of restrictions. One such restriction I recall seeing in a building was some formula, which was complicated- but in essence was nothing more than making sure that the sales price was no more than a certain percentage of your income (so not really an income cap, but more of a sensibility standard). To get an idea of the income restrictions in table form see http://www.nyc.gov/html/hpd/html/developers/til.shtml
That chart only gives you the 120% and 165% values and is last years numbers (2011 should be adjusted for inflation), but it should give you a general idea.

TX - you've been posting a lot about all sorts of harlem places. Seems like you are all over the map. What is it that you are looking for, exactly?

I'm looking for a unit in the Harlem WH area for under $130,000.

Have you looked at lower Convent Ave- such as 29 Convent, 36 Convent, 33 Convent, or Hamilton Heights Community- new hdfc http://www.uhab.org/sites/default/files/listing_detail/Hamilton_Heights_New.pdf

It probably makes sense to rent.

Pawn Harvester you may be right it seems that the places I can afford just aren't what I'm looking for thanks for your input.