Questions about Harlem HDFC housing Flip Taxes and weird boards
Started by anonymous
over 19 years ago
Posts: 8501
Member since: Feb 2006
Discussion about
i am finding a few "deals" around Harlem, however there are the catches of "flip taxes" usually about 80% profit goes to the city and the board. These apartments must be very hard to sell you think? I made an offer on one, less then 5% lower than the asking price and still the owner counters wanting more. I am thinking of just leaving my original offer on the table and see what happens... the... [more]
i am finding a few "deals" around Harlem, however there are the catches of "flip taxes" usually about 80% profit goes to the city and the board.
These apartments must be very hard to sell you think?
I made an offer on one, less then 5% lower than the asking price and still the owner counters wanting more. I am thinking of just leaving my original offer on the table and see what happens...
the other property has not only a flip tax, but there is income restrictions, the board has declined 2 potential buyers already and I think, possibly there is some "funny" business going on, like the board is doing something to sabotage the sale?
the agent actually told me that seller would like an all cash deal, lol.. who has 300K+ in the bank and makes less then 90k a year?
what is up?
any ideas on finding more HDFCs?
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Response by anonymous
over 19 years ago
Posts: 8501
Member since: Feb 2006
Interesting findings. Actually I have a question about HDFCs. What does this term stand for? What will be the pro/con for HDFC?
wow, i just saw your listing...and i was wondering how its gone so far? i'm going through something very similar, where i've made an offer into one of these HDFC buildings in washington heights. it had all these weird flip taxes and stipulations. my problem is that my offer has been accepted but i'm having so many problems locating all financial picture of the building. my lawyer has completely gotten the run around by the managing agent and the lawyer, etc.
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Response by anonymous
about 19 years ago
Posts: 8501
Member since: Feb 2006
HDFCs are ment to be affordable to low income people so there is a lots of restrictions on them (income restriction, high flip tax etc..). They want to keep flippers and rich people away. If you want to make money on your investment, HDFC are the wrong place. Income restriction limit who can apply that means if u want to sell your place, you will have only a limited number of buyers.
I was interested in an HDFC but after a long thinking I decided not to go with. I have a low salary and I see my aprtment as an investment for my retirement.
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Response by anonymous
over 18 years ago
You'd should check the proprietary lease to determine how long the income restrictions will be in force. I'm in an HDFC Coop founded in the early '80s and the income restrictions were only in force for the first 10 years.
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Response by OriginalPoster
over 18 years ago
Posts: 194
Member since: Jul 2006
People who have 300,000 in the bank but who have low incomes are kids whos parents buy for them or people who dont make a lot but have inherited money.
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Response by anonymous
over 18 years ago
Posts: 269
Member since: May 2007
I was going to purchase a HDFC co-op in Harlem too but on advise from my attorney and a developer friend of mine...I decided not to move forward due to the resale restrictions. These units serve as community catalysts...laying the groundwork to community development.....people have to remain in those units for quite some time before they can actually sell and make a decent profit. I'd say that currently, if you have the cash just go for a market rate unit...besides some of those HDFC deals just don't make sense and if those of us with a bit of cash aren't willing to buy into those developments, the HDFC will need to modify the conditions since the success of those developments also depend on the sale of the market rate units.
Interesting findings. Actually I have a question about HDFCs. What does this term stand for? What will be the pro/con for HDFC?
"HFDCs: Understanding Resale [UHAB.org]":http://www.uhab.org/index.cfm?fuseaction=Page.viewPage&pageId=510&parentID=476&nodeID=1
Update: fixed link
wow, i just saw your listing...and i was wondering how its gone so far? i'm going through something very similar, where i've made an offer into one of these HDFC buildings in washington heights. it had all these weird flip taxes and stipulations. my problem is that my offer has been accepted but i'm having so many problems locating all financial picture of the building. my lawyer has completely gotten the run around by the managing agent and the lawyer, etc.
HDFCs are ment to be affordable to low income people so there is a lots of restrictions on them (income restriction, high flip tax etc..). They want to keep flippers and rich people away. If you want to make money on your investment, HDFC are the wrong place. Income restriction limit who can apply that means if u want to sell your place, you will have only a limited number of buyers.
I was interested in an HDFC but after a long thinking I decided not to go with. I have a low salary and I see my aprtment as an investment for my retirement.
You'd should check the proprietary lease to determine how long the income restrictions will be in force. I'm in an HDFC Coop founded in the early '80s and the income restrictions were only in force for the first 10 years.
People who have 300,000 in the bank but who have low incomes are kids whos parents buy for them or people who dont make a lot but have inherited money.
I was going to purchase a HDFC co-op in Harlem too but on advise from my attorney and a developer friend of mine...I decided not to move forward due to the resale restrictions. These units serve as community catalysts...laying the groundwork to community development.....people have to remain in those units for quite some time before they can actually sell and make a decent profit. I'd say that currently, if you have the cash just go for a market rate unit...besides some of those HDFC deals just don't make sense and if those of us with a bit of cash aren't willing to buy into those developments, the HDFC will need to modify the conditions since the success of those developments also depend on the sale of the market rate units.