So let's say somebody actually does think it is prudent to buy a co-op in the next few months (i don't want to debate that logic) how does one pass(assuming you have stable employment) the asset test that many boards have set up when your latest brokerage statements are going to show a 20-35% reduction in your net worth, prices have to reflect that, right?
That may very well be a problem for you and others. That will likely slow what little ction there is even more. The boards are not going to be flexible on this issue. In fact, they may be even more difficult.
You're assuming there is a direct5 coorelation between the market and co-op prices...wrong.While there might be some linkage the more direct fundamentALS OF SUPPLY AND DEMAND WILL PREVAIL .
Suddenly, no one will be able to pass co-op interviews. Co-op boards will refuse to approve sales if they think the prices are too low. Inventory will rise. People will go bankrupt.
Okay - that's the worst-case scenario. But I knew someone it happened to in 1993.
Or: co-op boards will get smart, lift sublet restrictions, reduce cash requirements, allow pets, and act like decent human beings.
Steve - While I think that may be a bit extreme, I do think it will happen a few times. They never have to give a reason for turning someone down, but it is a tricky situation. If they aren't careful it can be a slippery slope.
Co-op Discount
So let's say somebody actually does think it is prudent to buy a co-op in the next few months (i don't want to debate that logic) how does one pass(assuming you have stable employment) the asset test that many boards have set up when your latest brokerage statements are going to show a 20-35% reduction in your net worth, prices have to reflect that, right?
That may very well be a problem for you and others. That will likely slow what little ction there is even more. The boards are not going to be flexible on this issue. In fact, they may be even more difficult.
You're assuming there is a direct5 coorelation between the market and co-op prices...wrong.While there might be some linkage the more direct fundamentALS OF SUPPLY AND DEMAND WILL PREVAIL .
Are you employed in the financial sector? One additional concern is that no matter how good your particular situation is, the boards may be gun shy.
Suddenly, no one will be able to pass co-op interviews. Co-op boards will refuse to approve sales if they think the prices are too low. Inventory will rise. People will go bankrupt.
Okay - that's the worst-case scenario. But I knew someone it happened to in 1993.
Or: co-op boards will get smart, lift sublet restrictions, reduce cash requirements, allow pets, and act like decent human beings.
Oh never mind!
Steve - While I think that may be a bit extreme, I do think it will happen a few times. They never have to give a reason for turning someone down, but it is a tricky situation. If they aren't careful it can be a slippery slope.