New Condos in South Slope
My wife and I have been looking for some time in the South Slope area and are intrigued by some of the small new condo developments in the area (not the larger buildings on 4th Ave). I’ve seen a number of posts on this site stating that buying a condo in one of these new…
My wife and I have been looking for some time in the South Slope area and are intrigued by some of the small new condo developments in the area (not the larger buildings on 4th Ave). I’ve seen a number of posts on this site stating that buying a condo in one of these new buildings is a bad investment. Why is that? What makes a condo in a building with 7 other units different than an older condo building or coop? Just trying to understand the risks of buying into one of these buildings before taking the plunge. Thanks
Make sure you check and fully understand the future property tax on the building. There are some new condos in the SS that face a $2000.00 a month (not year) tax bill! The condo/tax topic has been mentioned on the blog in the past as well.
Thanks very much for the response. We are definitely seeing issues with financing since many of these buildings are less than 50 (or in some cases) 70% in contract. I understand the issues with some of these places looking terrible on the outside, but honestly, I’m much more concerned that they seem to becoming reaonable in price and of good quality. Of course, by no means am I an expert in these things.
This is an example of the type of places we are looking at.
http://www.cbhkg.com/listing.asp?propid=103072
Greetings, I live in the SS, but in a house. So we like the ‘hood. Prior to the house, we owned a coop in a 40 unit building in the Slope. So…
– There are issues, I wouldn’t call them risks, with living in ANY small coop/condo. Mainly, there may not be enuf maintenance money to hire a managing agent, super, etc. So you may find yourself shoveling snow, taking out the garbage, filing taxes, etc. Or paying a large amount of money (on a per-apt basis) to get someone to do it for you.
– There are additional risks in buying in a NEW small condo. Some of these risks apply to buying in ANY new condo. In this environment, it is no longer easy to get financing. Most banks will not extend you financing until a large percentage of the apts are sold, like 50% or more. You could be left hanging while waiting. Even if you get the financing, at any time the developer can just give up and decide to rent the rest of the units out. Then you’re living with a bunch of bitter renters but worse, the sponsor retains control of the board and stymies progress. Additionally, in a new condo (as opposed to one that has been around a while) there may be several more or less serious construction defect issues that will need fixing. Bad enuf if all the units are sold, but worse if the sponsor still owns much of the building.
-What’s unique to the South Slope? Because it was cheaper to build here, you have, in some cases, less experienced and less well off developers. Everyone complains that the construction and design is terrible. I think that’s more nimbyism, anti-development attitude than anything else, but it pays to look very carefully at the issue. Frankly, some of these small, cheapo, fugly, mid-block condos in the SS will never get sold and will be turned into rentals. Some will come out OK, the ones that are architecturally more interesting and that offer good design and value for the money.
I’m sure if you posted some of the buildings that you are looking in, you would get a response.