Co-ops target home buyers who intend to live in their co-op purchase as a primary residence.
Buying a co-op requires a board package of 2-3 years of tax returns, references, and a board interview because co-op boards look for potential like-minded shareholders who buy into the co-op community.
These become barriers of entry to many wealthy international buyers who ultimately cannot get into a co-op building in New York City if their intended use is not as a primary residence. Celebrities encounter the similar problems because the co-op board’s concerns are focused on the quality of life for the building’s residents where having a group of paparazzi camping outside the co-op building creates an inconvenience for everyone.
The result is international money bidding up condominium prices in New York City instead of co-ops.
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