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One of the main benefits to buying a HDFC co-op apartment in NYC that seem to be overlooked is the fact that real estate taxes are lower. HDFC buidlings are not assessed at the same rate as regular buildings, and from what I've heard the real estate taxes for a HDFC building is about 1/3 (one third) of the taxes for a comparable, non-HDFC building.
With that said, you can only buy a HDFC coop apartment if you can come up with the funds, as banks seem to be generally hesitant to loan against limited equity co-ops. After all, if they do a coop foreclosure, they'll be bound by the same rules as the shareholder. Meaning higher than normal co-op flip taxes and needing to sell to a buyer that meets strict maximum HDFC coop income requirements.
But obviously if you have low income, but a lot of assets, this can be a great arbitrage play for you. In fact, many HDFC co-op listings openly advertise that they prefer or only want all cash offers and buyers on their listing. Great example candidates include students with no income, but with rich parents who are happy to gift them the money. Or people with inheritances, trust funds or simply a lot of unrealized gains and wealth that don't generate much taxable income. I've even heard about a real estate investor with hundreds of rental properties in the Detroit area coming to NYC to buy a HDFC co-op, and he was eligible because all of those rental properties generated so much depreciation that he had a negative or close to negative income. Crazy the games that people can play.
With that said, you can only buy a HDFC coop apartment if you can come up with the funds, as banks seem to be generally hesitant to loan against limited equity co-ops. After all, if they do a coop foreclosure, they'll be bound by the same rules as the shareholder. Meaning higher than normal co-op flip taxes and needing to sell to a buyer that meets strict maximum HDFC coop income requirements.
But obviously if you have low income, but a lot of assets, this can be a great arbitrage play for you. In fact, many HDFC co-op listings openly advertise that they prefer or only want all cash offers and buyers on their listing. Great example candidates include students with no income, but with rich parents who are happy to gift them the money. Or people with inheritances, trust funds or simply a lot of unrealized gains and wealth that don't generate much taxable income. I've even heard about a real estate investor with hundreds of rental properties in the Detroit area coming to NYC to buy a HDFC co-op, and he was eligible because all of those rental properties generated so much depreciation that he had a negative or close to negative income. Crazy the games that people can play.