Buying a home in NYC with $200K/year income. Can you even afford to buy?

[@Cloxxki]

I like your style, awesome video. Definitely subbed and shortlisting you for when I come to Manhattan to rent or buy.

[@SargisMosyan]

Thank you. I am glad the video was helpful

[@singleparentfire2363]

This was very informational, thanks

[@SargisMosyan]

You are welcome. Thanks for watching.

[@Cloxxki]

Good to hear that Manhattan co-ops don't like big loans too much. I never did get into financing anything bigger, or even besides, my phone.

[@SargisMosyan]

It's not that they don't like loans, it's just to make sure the buyers are qualified to buy and carry the apartment. The most common down payment requirement for co-ops across the city is 20%, but there are some co-ops that allow only 10% down payment. So if the building allows 10% down payment and the buyer's DTI and post closing liquidity are within the building's requirements, there shouldn't be any problem for someone to put only 10% down payment (assuming the board doesn't see any other reason for rejection). Some co-ops might even require as high as 40-60% down payments and a lot of post-closing liquidity.

[@Cloxxki]

@@SargisMosyan Well I still appreciate they make their own rules rather than following what the most eager bank accepts while having zero risk themselves 😂

[@mayamarshall4224]

With that hoa it is more complicated but thank you for video was helpful for sure.

[@SargisMosyan]

I am glad the video was helpful. For co-ops what makes it complicated is the combination of the hoa (monthly maintenance) payment and different requirements for every building.

[@Andre-qo5ek]

do you know the outer boroughs? with less income?

[@SargisMosyan]

Hi. Thanks for watching the video. I am happy to help. Can you please specify the question? Where exactly you are interested? Brooklyn, Queens, Bronx or Staten Island or maybe even outside of NYC like Westchester or Nassau counties?

[@Andre-qo5ek]

@@SargisMosyan Queens preferably. My idea is somewhere small and community feeling, but will become something more like LIC but also not lose it's charm. it's a tall ask.

[@SargisMosyan]

I see. You have some options, but it all depends on the budget and the monthly carrying costs. Feel free to reach out directly for more detailed information. You can email me at [e-mail]

[@Cloxxki]

Do high net worth individuals really let a board see their actual wealth, or typically buy a condo through their company or a specially created company? I'm not sure I'd want a glorified landlord to see my true purchase power, if they also know where my kids go to school or to the grandparents and by which means of transport...

[@SargisMosyan]

Thanks for watching the video. To answer your question, yes, doesn't matter what's the buyer's net worth. Co-ops will not review the board package if there is any missing paperwork. A lot of times, if something is missing, or they have questions they will ask for additional paperwork to clarify the situation but it is also possible that incomplete or incorrect board packages might get rejected right away if the board finds out that the buyer is deliberately trying to hide certain information in their financial profile. There are known cases where certain co-ops even rejected famous people who were trying to buy an apartment in their building. The paperwork for the board package and financial requirements depend on that specific building. Some of them can be strict and require a lot of paperwork. Typically yes, if people are buying a condo or single-family or multifamily property, it is a common practice to buy it under an LLC.

[@Cloxxki]

@@SargisMosyan Thanks! Would it be accepted to create a dedicated (escrow) account with a couple year's costs to present, rather than the bulk of private net worth? Imagine the dodgy doorman learning about your full resources...

[@SargisMosyan]

An escrow account might be needed for a completely different situation. In the situation you are describing, which is assuming the buyer is more than qualified to buy and carry the apartment and doesn't want to show all their bank accounts, when filling out the financial statements, nothing is stopping them from only including the bank accounts they want to show, but this might be extremely risky and everything needs to be prepared very carefully. Because the review of one's financial profile includes their tax returns, bank statements, investment portfolio, retirement accounts, paystubs, any K1 statements, corporate tax returns (if applicable), any other real estate owned, etc. So if the buyer is a high net worth person, a business owner or an executive with an extremely high salary, showing only enough cash available for a home purchase and that's it, might raise a red flag and some questions. "Cash in banks" is only a part of someone's net worth and if the board package requirements are to show all your assets and liabilities, just hiding a few bank accounts probably wouldn't make any difference. But if buyers try to hide other stuff such as other real estate owned, or businesses they are operate or libailities such as loans, car payments, etc, this might result in rejection. Every situation is different and every building is different so I am happy to discuss your specific situation if you are considering buying a home in NYC. You can reach out to me anytime.

[@avaramirez7777]

This is why I don't think I will buy a coop

[@SargisMosyan]

Well I agree that buying a co-op might not be the right choice for everyone but co-ops can provide some serious savings and depending on one's situation living in a coop building might actually be better than living in a condo. There are some important pros and cons that needs to be taken into a careful consideration. Thanks for watching.