Permanently Affordable Condo - The Sutton

Hi all. I was recently approved to purchase an affordable condo at The Sutton on First Ave in NYC. 1 Bedroom condo for under $400k, sounds like a dream right? Unfortunately upon receiving and then reviewing the offering plan, I discovered that the affordable condos are "permanently affordable." That is, when re-selling the condo, the sales price is restricted as purchase price adjusted for... [more]

Hi all. I was recently approved to purchase an affordable condo at The Sutton on First Ave in NYC. 1 Bedroom condo for under $400k, sounds like a dream right? Unfortunately upon receiving and then reviewing the offering plan, I discovered that the affordable condos are "permanently affordable." That is, when re-selling the condo, the sales price is restricted as purchase price adjusted for inflation (based off of the CPI). Additionally, there is an income cap and an asset cap for the buyer. As such, it makes the condo extremely restrictive. I guess my question is, has anyone heard of anything similar to this? From what I understand, each affordable condo project is different, with some projects requiring a certain number of years before being able to re-sell at market value. However, I have never heard of a permanently affordable condo. While it's still a very affordable opportunity to live in a nice area in Midtown Manhattan, I am concerned about tying up all of that capital with no real opportunity of appreciation of my asset. I'm not looking to purchase this condo to re-sell, but I would like my equity to grow at more than just inflation. If anyone has any insights, that would be greatly appreciated. [less]