Question

Explain the difference between a coop, a condo, and a house. Also, detail three different types of mortgages and explain which type of real estate and mortgage would be best for you. What are your 5- and 10-year goals that will get you closer to achieving your goal of homeownership? Be specific and use actual numbers reflecting the current market state and your financial plan.

Answer 1

ANSWER:- The difference between the a coop,a condo, and a house are defined as above:-

COOP:-Coop is short for housing cooperative. In cooperative housing, instead of owning a specific unit, you own shares in a corporation. This means that co-ops are not considered real property. However, coops may be treated as real property for tax purposes.

CONDO:- It is a type of living space similar to an apartment but independently sellable and therefore regarded as real estate.

HOUSE: It is abuilding or part of a building occupied by one family or tenant; dwelling place.

Let understand it in more details:-

Coop:- It is also known as COOPERATIVE.In a coop, owners own a share of a corporation, and you’re basically investing in the property. Typically, the larger your apartment, the more shares you own. You also pay what seems like a high monthly maintenance fee, which covers basics like building upkeep and staff salaries, and also your taxes.

We were warned to allow about six months between signing the contract and when we could move in for a coop, while a condo could usually be completed in two to three months. Banks told us that the coop approval process for loans took longer.

However, we heard from some friends they had a hard time getting home equity loans from most banks after the financial crisis because coops aren’t your property. There are some specialist banks that will do it, but you will have to pay a higher interest rate.

Condo:-Condos are just like houses in the sense you will be the title owner of an actual piece of property. They require as little as 10 percent down, but know that if you over less than 20 percent, you may face additional mortgage insurance costs. And if you ever want to take out a home equity loan in order to purchase another property, you’ll easily be able to leverage your condo.

Condos tend to cost more per square foot so you’ll need a larger down payment. They also have higher closing costs than coops since you have to cover title insurance and bank fees. Also if you want to buy in Manhattan, condos, depending on your price point, can be in short supply,except for the luxury and super-luxury range.

House:- There are no formal monthly maintenance fees per se, we found that we were actually able to consider houses that were a bit over our price range for condos and coops.

Houses often come divided into two- or three-family apartments. It’s great because you can rent out a unit or two and help cover the additional cost of the mortgage.

However, we weren’t keen to be first-time owners and landlords at once. If you don’t want the hassle of tenants, it can be expensive to reconfigure the property to make it a one-family house. You may have to reroute gas lines, knock through floors, and add staircasestasks we weren't ready to take on.

ANSWER:-Different type of Mortgage are as following:-

1)Simple Mortgage: It has below characteristics:-

i) That the mortgagor must have bound himself personally to repay the loan

ii) That to secure the loan he has transferred to the mortgagee the right to have the specific immovable property sold in the event of his having failed to repay.

2)Unsufructuary Mortgage: It has below characteristics:-

i) That the possession of the property is delivered to the mortgagee;
ii) That the mortgagee is to get rents and profits in lieu of the interest or principal or both;
iii) That no personal liability is incurred by the mortgagor.

3) Mortgage by Conditional Sale: It’s defined as a situation, where the mortgagor ostensibly sells the mortgaged property :-

i) on the condition that on default of payment of the mortgage money (loan) on a certain date the sale shall become absolute or

ii) on condition that on such payment being made the sale shall become void or,

iii) on the condition that in such payment being made the buyer shall transfer the property to the seller,

Here,the real estate and the mortgage is best is the Simple Mortgage because the loans are paid personlly.

ANSWER:- The 5- and 10-year goals that we will get closer to achieving our goal of homeownership are challenge, capturing the change in one’s physical appearance from what it was a decade ago to now, has become a social media craze. While participating in such challenges can make you feel good for some time, there is little beyond that. On the other hand, if you set yourself a financial challenge, it might not garner any likes or comments as it is private in nature, it could make a qualitative difference to your future.

ANSWER:-The use of actual numbers reflecting the current market state and our financial plan helps in knowing the information found on the financial statements of an organization is the foundation of corporate accounting. This data is reviewed by management, investors, and lenders for the purpose of assessing the company's financial position.

The main purpose of financial analysis is to utilize information about the past performance of the company in order to predict how it will fare in the future. Another important purpose of the analysis of financial statements is to identify potential problem areas and troubleshoot those.