I think I found a great deal with some caveats... - Posted by Selim

Posted by Joe on March 17, 2006 at 10:36:26:

Like you said, this isn’t an investment, it’s a deal for your personal residence. So you just have to look at your budget, schedule, location, etc and see if it works for you. I have no idea how that subsidized housing works, but there are probably rules about how and when you can move out or sell the place, what price you can sell at, etc. So this would take a lot of research to determine if you could make money by living there. But one thing is for sure … the government builds these things for low income people to have a decent place to live. These don’t build them for investors to make money off of.

I think I found a great deal with some caveats… - Posted by Selim

Posted by Selim on March 16, 2006 at 19:23:44:


My name is Selim…this is my first posting… I’m hoping for some feedback to what is going on here so I might have a better idea on how to proceed…

Several months ago I was searching the nyc housing department for real estate deals. One deal I found was for a condominium to be built in my neighborhood (I lived in a neighborhood that is being “gentrified”). The idea is that I submitted my name to a lottery process and if I am chosen, I can receive an apartment, provided it becomes my primary residence (can’t be an investment vehicle primarily).

I received a letter saying that I have been chosen for an interview. They gave me a list of the apartments in the building and what the subsidized ones go for…here is an example:

3 br 2 bath, 1053 sq ft. Price: 179,000 + 457 monthly maintenance, 18 a month real estate taxes. The unsubsidized apartment in this complex, same dimensions, goes for : 395,000

Now obviously the difference is significant. Here is why I am concerned…

  1. I am not in control of the sale…I don’t have an opportunity to negotiate or even inspect the apartment since it has not been completed yet.

  2. I currently am renting a large apartment (3 br two bath) with two other people. Since I am the lease holder, I set it up so that I am only paying less than 300 a month in rent. I don’t want to have to give up the lease to this rent stabilized apartment

any thoughts? I know that deals come and go and I don’t even know whether i have this deal yet (I haven’t been chosen) but I want to go into it with open eyes. Thank you for your feedback in advance.