How are Coop Maintenance charges determined?

Started by Nams
over 13 years ago
Posts: 2
Member since: Feb 2007
Discussion about
A broker told us last weekend that the maintenance of a 3-BR coop we liked is high because the building financials are not good. Is that a correct correlation? Shouldn't we avoid buying in the building if the financials are not good?
Response by anonymous
over 13 years ago
Posts: 8501
Member since: Feb 2006

Absolutely! wow, the broker told you this?? bad financials are NOT a good sign, esp if it's a key reason why the maint fees are high.

If the broker is correct you should avoid buying into this building because it would mean a bad investment. And it also means your maint fees will only go up further. Run away as fast as you can!!!

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Response by anonymous
over 13 years ago
Posts: 8501
Member since: Feb 2006

Agreed that it can be a bad sign, but it is not necessarily a fatel blow for some. I am happy to hear a broker tell you that though. I do not generally trust brokers a ton, so you should do some more homework and have a lawyer look at the books before you compelely give up on the place if it is otherwise great.

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Response by millefeuille
over 13 years ago
Posts: 73
Member since: Jan 2007

What does 'high' mean? Are there some guidelines for evaluating how much the maintenance of coop should be? Thanks in advance.

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Response by anonymous
over 13 years ago
Posts: 8501
Member since: Feb 2006

http://www.urbandigs.com/index.html

"February 20, 2007 Maintenance Charges: The Hidden Devil...!
If your monthly maintenance + real estate charges equal more than 1.65x the total square footage, then you better make sure the asking price of the property has been lowered to compensate for the higher cost of carrying the apartment! Read this post to see why! Originally Published November 29, 2005."

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Response by anonymous
over 13 years ago
Posts: 8501
Member since: Feb 2006

maintenance more than 400/600/800 for a 1/2/3 bedroom is considered high in nyc

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Response by anonymous
over 13 years ago
Posts: 8501
Member since: Feb 2006

#6, your rates are too low.

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Response by anonymous
over 13 years ago
Posts: 8501
Member since: Feb 2006

I agree with #7. I live in a condo and my property taxes for 1000 square feet are $450/mo. A coop of similar size could not possibly cover its portion of property taxes (which would be similar), and the underlying mortgage on the building, AND the labor to maintain the building on less than $600/mo.

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Response by anonymous
over 13 years ago
Posts: 8501
Member since: Feb 2006

We have a 300' studio in a small building UES, our maintenance is 543 per month.
No way a one bedroom coop is considered high in Manhattan for 400 month.

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Response by anonymous
over 13 years ago
Posts: 8501
Member since: Feb 2006

#6 you have to distinguish between coop and condo maintenance charges. Coops will be higher but they also include property taxes (income tax benefits are passed along to the shareholder). Condo owners pay taxes separately. When you add it all up it comes out about even.

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Response by anonymous
over 13 years ago
Posts: 8501
Member since: Feb 2006

You should have your attorney look at the financials (last two years) of the building. They may sometimes have assestments for fix amount of time that would make the maintanance look more than it is. Get a good real estate broker and a good Manhattan real estate lawyer. If it doesn't look good your attorney will make sure you do not sign the contract.

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Response by anonymous
over 13 years ago
Posts: 8501
Member since: Feb 2006

In our co-op, the maintenance is calculated by the number of shares of the unit x a dollar amount (the same for all units). Our fee is right in the middle (higher than some, lower than others).

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Response by anonymous
over 13 years ago
Posts: 8501
Member since: Feb 2006

rock paper scissors

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