Prospective buyer review (not renter):
Cons:
- Extremely limited financing: only one credit union known to offer 5/1 ARM at 4.75% (floored at 4.75% and allowed to go up to 10.75%); no fixed rate financing available. Conventional loans nowadays go as low as 2.875% for 5/1 ARM and 3.5% for 30y fixed.
- Will not bother to look at Resale in this building again. Sponsor owns over 70% of the building and wields too much influence over Board. They exercised the First Right of Refusal against my purchase, even though Seller had been trying to sell for a year without success and had to lower sale price.
- Owner-occupied ratio hovers around 20% and Sponsor has to sell probably another 75 units before getting to 50% owner-occupied ratio. Sponsor has been selling 3-5 units/year, so that day is over 10 years away at the same pace. If market ever crashes and you need to get out, you have very small pool of prospective buyers; big banks do not underwrite loans unless it is 50% owner-occupied.
- Board application process is as extensive and intrusive into personal finance as an application for a Co-op purchase. I was surprised.
Pros:
- Building is located on Ditmars Ave within 15-20mins walk from Ditmars Bld N, Q station. There is a bus stop in front.
- Price reflects some discount for the terrible financing situation (discount is probably less attractive than in the past, but is still there). Good if you are all cash buyers and have no better idea on how and where to use your cash
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