co-ops and limited equity
From: Martin Henner (
Date: Mon, 9 Feb 2009 10:06:50 -0800 (PST)
Three other factors to consider on the question of co-op structure and limits on appreciation.

1. I have seen situations where someone has sold their home and used that money to buy into a co-op that had limits on appreciation. Years later, when they were ready to move to another region, and again buy a home, they discovered that home prices had increased substantially, and they would not be able to get enough money from the sale of their co-op to be able to afford the kind of home they had once owned and sold.

2. There is more flexibility and more competition among banks to grant home equity loans on condos, which people may need on occasion for their children's college tuition or other purposes. Has anyone had experience in being able to get a home equity line of credit on a co-op?

3. There are a variety of reverse mortgage programs for the elderly, permitting people to borrow against their home, getting a payment each month. This permits them to supplement a meager retirement income. But it may be much more difficult to obtain a reverse mortgage on a co- op than on a condo.

Martin Henner
henner [at]
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