Hi, I am a first time potential buyer and I am currently investigating investing in an HDFC property, which is all I can now afford. I have read some of the previous posts about the topic, so I know some of the specifics about resale restrictions and income requirements, but I was hoping for some general advice on how the process differs from the standard one. Is it that much more difficult or... [more]
Hi, I am a first time potential buyer and I am currently investigating investing in an HDFC property, which is all I can now afford. I have read some of the previous posts about the topic, so I know some of the specifics about resale restrictions and income requirements, but I was hoping for some general advice on how the process differs from the standard one. Is it that much more difficult or lengthy? How competitive is the market? I am not sure I want to waste too much time if it is an impossible objective.
Also, I am having difficulty finding listings. Does anyone know of any comprehensive listing for these properties or of any good buildings with available listings? Are they that far and few between? Is there high turnover, which would make it worthwhile to wait? I am looking something below Harlem, but preferably downtown.
Thanks in advance for any help!
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Response by the_nerve
almost 15 years ago
Posts: 102
Member since: Oct 2008
Can't help with HDFC tips but just in case you didn't see it, searching on here is just a matter of adding 'income restricted' in the advanced search options. This of course assumes listings are correctly identified in the first place.
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Response by semerun
almost 15 years ago
Posts: 571
Member since: Feb 2008
There is a lot of great advice on HDFC buildings on this discussion site. Assuming you are reading the full thread (and not last 20 posts preview) there is a search discussions search box- type HDFC and there is a lot of information there.
Yes, there are downtown properties, i.e. East Village. Some properties will be labeled income restricted or HDFC- others may not. It's really a guessing game when reviewing listings. I know there is a complete list out there of HDFC buildings somewhere on the web- I can't recall where I saw it though.
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Response by eliz181144
almost 15 years ago
Posts: 211
Member since: May 2009
NoviceBuyer - we purchased in an HDFC. Let me know what you're curious about. In general, if you're desireable (good job, solid savings) for them - they're often very flexible/bend rules. Overall, it's no more lengthy than the average sale.
Just be careful: make sure the building has a solid reserve fund. Some HDFCs we looked at had very high maintenance to make up for alow reserve fund. My recommendation is to only buy if the financials are very solid.
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Response by npaik
almost 15 years ago
Posts: 25
Member since: Jul 2007
Hi Novice Buyer:
A few things about HDFCs:
1. The agency that deals with them is called UHAB and you could see apts they have available and how to apply at UHAB.org
2. ALL HDFCs have salary restrictions how strictly they enforce them depends on the building but they are ALL supposed to have them.
3. You 100% should have an attorney that specializes in HDFCs if you are planning to purchase in one. Each building is different and depending on the particular building and their regulatory agreement with the city etc there could be issues with financing and re-sales, etc. Once these buildings are up and running they are run by your fellow purchasers a lawyer needs to check out the paperwork and see if the building's finances are solid and the building is being run properly and does not have 'issues.'
4. You need to be aware that in most cases you will not make a large profit when you sell. These apts are intended for low-middle income people to live on a long term basis and there are usually strcit sublet policies and high flip taxes involved with these apts.
Hope that helps. Good Luck!
Best,
Nicole Elyse Paikoff
Senior Associate Broker
Corcoran Group
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Response by NoviceBuyer
almost 15 years ago
Posts: 5
Member since: Aug 2011
Thanks for the comments and suggestions everyone. I thought I had looked through most of the previous posts and found them repeating much of the same limited info. I will give it a try with the newly suggested search terms.
Thank also for the offer to help eliz18114. Do you know of any particularly good buildings that came through in your search or of any listing? I have not come across much (either at the HDFC or UHAB sites).
One last quick question: does anyone have a sense of often these properties go into and out of the marketplace? This is similar to my earlier question of how long the process takes, but what I am trying to get at is how big the overall pool of these properties are. I have a relatively short time horizon to get this done, but I would love to see some other potential properties, other than the limited few I have found. I am guessing there are more than the few I have already seen and I just need to continue digging and/or find a good broker.
Again, everyone's help is much appreciated!
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Response by Macau
almost 15 years ago
Posts: 33
Member since: Jul 2010
I would say decide first where you would like to live and that will more quickly answer your question of "how big is the pool of these properties." May I ask where you're looking? Manhattan? I found the .gov sites did not have a lot of inventory listed, but if you do a simple nyt search, the price range you'll be looking at will inevitably yield hdfc housing. Brokers advertise these apartments in the same way they do open market housing.
And definitely make sure the financials are in order. Also, not to come off as too obsequious, but in the spirit of HDFC, investors or even "trust fund babies" really have no business trying to get into an HDFC housing. I'm not saying you are either of those! I mention this because if the board is strict about who they let into the building, meaning they take care in investigating somebody's finances, then the process may take a while and be quite invasive (as most co-ops are anyway...). But it also means you've got a good board in place and probably a well-run building.
Can't help with HDFC tips but just in case you didn't see it, searching on here is just a matter of adding 'income restricted' in the advanced search options. This of course assumes listings are correctly identified in the first place.
There is a lot of great advice on HDFC buildings on this discussion site. Assuming you are reading the full thread (and not last 20 posts preview) there is a search discussions search box- type HDFC and there is a lot of information there.
Yes, there are downtown properties, i.e. East Village. Some properties will be labeled income restricted or HDFC- others may not. It's really a guessing game when reviewing listings. I know there is a complete list out there of HDFC buildings somewhere on the web- I can't recall where I saw it though.
NoviceBuyer - we purchased in an HDFC. Let me know what you're curious about. In general, if you're desireable (good job, solid savings) for them - they're often very flexible/bend rules. Overall, it's no more lengthy than the average sale.
Just be careful: make sure the building has a solid reserve fund. Some HDFCs we looked at had very high maintenance to make up for alow reserve fund. My recommendation is to only buy if the financials are very solid.
Hi Novice Buyer:
A few things about HDFCs:
1. The agency that deals with them is called UHAB and you could see apts they have available and how to apply at UHAB.org
2. ALL HDFCs have salary restrictions how strictly they enforce them depends on the building but they are ALL supposed to have them.
3. You 100% should have an attorney that specializes in HDFCs if you are planning to purchase in one. Each building is different and depending on the particular building and their regulatory agreement with the city etc there could be issues with financing and re-sales, etc. Once these buildings are up and running they are run by your fellow purchasers a lawyer needs to check out the paperwork and see if the building's finances are solid and the building is being run properly and does not have 'issues.'
4. You need to be aware that in most cases you will not make a large profit when you sell. These apts are intended for low-middle income people to live on a long term basis and there are usually strcit sublet policies and high flip taxes involved with these apts.
Hope that helps. Good Luck!
Best,
Nicole Elyse Paikoff
Senior Associate Broker
Corcoran Group
Thanks for the comments and suggestions everyone. I thought I had looked through most of the previous posts and found them repeating much of the same limited info. I will give it a try with the newly suggested search terms.
Thank also for the offer to help eliz18114. Do you know of any particularly good buildings that came through in your search or of any listing? I have not come across much (either at the HDFC or UHAB sites).
One last quick question: does anyone have a sense of often these properties go into and out of the marketplace? This is similar to my earlier question of how long the process takes, but what I am trying to get at is how big the overall pool of these properties are. I have a relatively short time horizon to get this done, but I would love to see some other potential properties, other than the limited few I have found. I am guessing there are more than the few I have already seen and I just need to continue digging and/or find a good broker.
Again, everyone's help is much appreciated!
I would say decide first where you would like to live and that will more quickly answer your question of "how big is the pool of these properties." May I ask where you're looking? Manhattan? I found the .gov sites did not have a lot of inventory listed, but if you do a simple nyt search, the price range you'll be looking at will inevitably yield hdfc housing. Brokers advertise these apartments in the same way they do open market housing.
And definitely make sure the financials are in order. Also, not to come off as too obsequious, but in the spirit of HDFC, investors or even "trust fund babies" really have no business trying to get into an HDFC housing. I'm not saying you are either of those! I mention this because if the board is strict about who they let into the building, meaning they take care in investigating somebody's finances, then the process may take a while and be quite invasive (as most co-ops are anyway...). But it also means you've got a good board in place and probably a well-run building.