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Your Questions About Woodhaven Queens Apartments

September 5, 2012

Betty asks…

Flip tax on a New York City Co-Op apartment?

Hi. I am in the process of buying a co-op apartment in Woodhaven, Queens, New York. It is considered as 56 shares and the board requires a $300/share (comes out to around $17,000) flip tax to be paid to them when the apartment is sold.
I’ve never heard of a flip tax before and wanted to know if this applies to all co-ops, some, most…? Is this somethign that I should get into or does it make the place harder to sell down the road and not worthwhile?

Side note, the the apartment is selling for $145,000 with a monthly maintenance of $565 (includes utilities).

I plan to live there no longer than 10 years… I need advice is this is somethign that I should do or amybe not?

Administrator answers:

It is a way to get tenants that plan to stay some where a long time. Some places just do not want a huge turnover (just like some others that do not like renters, or buying for kids, or …). It is a way to make sure a “certain” kind of person lives in the building. If you are staying 10 years, then you are ok. The lower maintenance will make up for the flip tax.

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