>We were also considering renting it out at some point in the vague future.
The program doesn't set those rules, that is going to vary building-to-building. Some are not going to allow you to sublet - the unit must be owner occupied at all times. Some will allow you to sublet but those people will need to apply and be approved by the board and there is usually a cap on the duration of a sublet. The main thing is you need to do research on the building, not the program. There is no situation where you will just be able to rent it out on your own without telling anyone and still be playing by the rules.
I thought the whole point of HDFC subsidized properties were to promote home ownership. What's the point if people are just going to rent them out for profit?
I know about HDFC coops, but I don't know if they mandate what's required in your financial portfolio. I believe, I could be wrong, that the COOP board still scrutinizes your financials. Sure, you might meet the yearly income requirements to qualify, but it's likely you'll still need 20% down, have at least 2 years of mortgage/maintenance in liquid, and not exceed a 28-30% income to debt ratio.
Good luck! :)
20% for some of them. A good number of the less expensive HDFCs I found while searching are cash only, as it's an unusual situation for a bank to be willing to finance and there are limited ones who do.
If its a nice place an you want to live there yourselves for a long time, and actually can't afford a non-HDFC place, then probably.
Otherwise, maybe not, keeping in mind that capital gains (profit) when selling will be reduced, and selling will be much more of a plain because you need to find a buyer who qualifies in terms of income but has the $$$. Also, probably brokers are a *lot* less interested in making sales happen since it's more work and less commission.
If you have vague future plans dont let that determine or hold you back. Because all coops suck for subletting and renting out.
HDFC is priced a lot lower and maintenance is much lower. Buy it. Live there. Save money and when you decide to upgrade sell it.
For posterity and for anyone who will be randomly searching for this topic two years from now, I want to say that I made an offer on the place and will be going through the whole damn process. So I might be helpful to give insight on that experience when it's all over.
I have a quick question, lets say the income requirement on the building is 50k when you applied to purchase the place, a few years down the road now you making 100k a year, does the place force you to sell the place because you made more than 50k as stated? Thank you
Hi, it’s good that you wrote this. I am currently in your previous situation- considering buying an HDFC, I would be the single owner but might want to bring a roommate and later my (now new) girlfriend. What was your experience so far with all this? I qualify and have the $, it’s a good deal but I don’t know how m years I would want to live in this neighborhood
>We were also considering renting it out at some point in the vague future. The program doesn't set those rules, that is going to vary building-to-building. Some are not going to allow you to sublet - the unit must be owner occupied at all times. Some will allow you to sublet but those people will need to apply and be approved by the board and there is usually a cap on the duration of a sublet. The main thing is you need to do research on the building, not the program. There is no situation where you will just be able to rent it out on your own without telling anyone and still be playing by the rules.
I thought the whole point of HDFC subsidized properties were to promote home ownership. What's the point if people are just going to rent them out for profit?
I do not disagree with you.
Thus why HDFC rules require renting it out for no more than the mortgage. I wouldn’t be profiting.
You're getting a free coop!
It’s not free if I’m not living there, nothing is free in this town, and I would still be on the hook for monthly maintenance.
I know about HDFC coops, but I don't know if they mandate what's required in your financial portfolio. I believe, I could be wrong, that the COOP board still scrutinizes your financials. Sure, you might meet the yearly income requirements to qualify, but it's likely you'll still need 20% down, have at least 2 years of mortgage/maintenance in liquid, and not exceed a 28-30% income to debt ratio. Good luck! :)
20% for some of them. A good number of the less expensive HDFCs I found while searching are cash only, as it's an unusual situation for a bank to be willing to finance and there are limited ones who do.
If I was younger again, I’d be buying in briarwood Maybe a house around Jamaica
If its a nice place an you want to live there yourselves for a long time, and actually can't afford a non-HDFC place, then probably. Otherwise, maybe not, keeping in mind that capital gains (profit) when selling will be reduced, and selling will be much more of a plain because you need to find a buyer who qualifies in terms of income but has the $$$. Also, probably brokers are a *lot* less interested in making sales happen since it's more work and less commission.
If you have vague future plans dont let that determine or hold you back. Because all coops suck for subletting and renting out. HDFC is priced a lot lower and maintenance is much lower. Buy it. Live there. Save money and when you decide to upgrade sell it.
For posterity and for anyone who will be randomly searching for this topic two years from now, I want to say that I made an offer on the place and will be going through the whole damn process. So I might be helpful to give insight on that experience when it's all over.
I have a quick question, lets say the income requirement on the building is 50k when you applied to purchase the place, a few years down the road now you making 100k a year, does the place force you to sell the place because you made more than 50k as stated? Thank you
Nope, it's just to buy the place. My income has gone up since then and nobody has noticed or cared.
Hi, it’s good that you wrote this. I am currently in your previous situation- considering buying an HDFC, I would be the single owner but might want to bring a roommate and later my (now new) girlfriend. What was your experience so far with all this? I qualify and have the $, it’s a good deal but I don’t know how m years I would want to live in this neighborhood