I'm bidding on an apartment

F Me In The Brain

dankind said:

F Me In The Brain said:

Spiritual_Chaos said:

F Me In The Brain said:

Spiritual_Chaos said:

Meltdown99 said:

Spiritual_Chaos said:

So what is the mortgage rate/percentage on your mortages? 

You can get a variable rate at 1.39% or fixed at 1.79%...thereabouts depending on the bank...interest on mortgages are cheap in Canada...

There are a few variables, but this is pretty much the swedish levels too. 

I will have to pay the fee to the "tenant-owned association"
2% of the loan back per month (amortization).
Plus the mortgage rate which will fall between 1,25-1,6%

I'm not the smartest when it comes to mortgages....we pay 3.6% on our loan, which for when we got it was good.

For Sweden...2% of the monthly loan payment goes to the tenant-owned association?

How much of your loan was provided by the bank, and how much by the tenant owned association?  (%s)  Do you know?

This seems very different -- and appears to be built to benefit the tenant owned association, vs. benefiting the bank, which I think would be great. 

Hmm. Maybe I explained it a bit muddled. And I do not know if "Tenent-owned assocation" is the right term - google gave me that one. 

It seems it can be called: "tenent-owned assocation", or "housing community" or "housing association" or "residents association" 

Basically, when buying an apartment you become part of the "organisaton" owning the building/buildings and you pay a "fee" every month that is being used to keep after the building, if repairs are needed, maybe the facade need a re-painting, pay back on loans that the organisation might have etc etc. The one owning my building (or I guess I am now co-owning by being member) has 300 apartments, while some can be just one building and be like 10-20 apartments big. And if I want I can join meetings and vote on things like "should we install chargers for electric cars on our parking lot?" or "should we change to a more energi efficiant window solution?"

The fee for my specific apartment, and to my specific association is 350 dollars a month. That included broadband and cable television. But not electricty.

Then, I need to pay back the loan to the bank with 2% (or 1% depending on how big of a percantage of the total cost of the apartment I loan, in Sweden the max is 85% so you need 15% of the total cost in cash) a month.

And then I need to pay the mortgage of 1,50% or whatever on the loan every month. 

Good explanation, makes total sense now.

What we call that in the US is HoA, or Homeowners Association, Fees.  (May be other names for it, but this is what I always see it as.)

So, yes - if you live in a gated community or a development subject to a HoA, you would have fees here, as well.  $350 sounds about right -- we did look at one spot in our town right on a golf course but my wife and I both shuddered at the idea of belonging to a HoA and having to deal with other people telling us how long our lawn could be, what color our shed could be, who could park in front of our house, etc.

I would accept this if this was the best option but luckily we had many options and could choose a spot where we get to decide those things and I don't need the approval of four cranky fucks in their 80s.  [A stereotype for HoA leadership is generally retired folks because....well, people who work tend to have less time to obsess about things like parking distance from the curbs, or someone leaving their trash cans out for pick up a day too long after collection.]

Hopefully, your HoA is made up of decent folks just working together to try and keep everyone in a good living space.

We bought a co-op apartment in Brooklyn, and my wife was on the board. S_C's situation sounds similar.

I know several people who joined the HoA / Condo Association boards themselves to "fight the power" from the inside.

Lucky to not have to deal with that, but I am sure many are fine and the horror stories are the ones I hear people griping about.

dankind

F Me In The Brain said:

dankind said:

F Me In The Brain said:

Spiritual_Chaos said:

F Me In The Brain said:

Spiritual_Chaos said:

Meltdown99 said:

Spiritual_Chaos said:

So what is the mortgage rate/percentage on your mortages? 

You can get a variable rate at 1.39% or fixed at 1.79%...thereabouts depending on the bank...interest on mortgages are cheap in Canada...

There are a few variables, but this is pretty much the swedish levels too. 

I will have to pay the fee to the "tenant-owned association"
2% of the loan back per month (amortization).
Plus the mortgage rate which will fall between 1,25-1,6%

I'm not the smartest when it comes to mortgages....we pay 3.6% on our loan, which for when we got it was good.

For Sweden...2% of the monthly loan payment goes to the tenant-owned association?

How much of your loan was provided by the bank, and how much by the tenant owned association?  (%s)  Do you know?

This seems very different -- and appears to be built to benefit the tenant owned association, vs. benefiting the bank, which I think would be great. 

Hmm. Maybe I explained it a bit muddled. And I do not know if "Tenent-owned assocation" is the right term - google gave me that one. 

It seems it can be called: "tenent-owned assocation", or "housing community" or "housing association" or "residents association" 

Basically, when buying an apartment you become part of the "organisaton" owning the building/buildings and you pay a "fee" every month that is being used to keep after the building, if repairs are needed, maybe the facade need a re-painting, pay back on loans that the organisation might have etc etc. The one owning my building (or I guess I am now co-owning by being member) has 300 apartments, while some can be just one building and be like 10-20 apartments big. And if I want I can join meetings and vote on things like "should we install chargers for electric cars on our parking lot?" or "should we change to a more energi efficiant window solution?"

The fee for my specific apartment, and to my specific association is 350 dollars a month. That included broadband and cable television. But not electricty.

Then, I need to pay back the loan to the bank with 2% (or 1% depending on how big of a percantage of the total cost of the apartment I loan, in Sweden the max is 85% so you need 15% of the total cost in cash) a month.

And then I need to pay the mortgage of 1,50% or whatever on the loan every month. 

Good explanation, makes total sense now.

What we call that in the US is HoA, or Homeowners Association, Fees.  (May be other names for it, but this is what I always see it as.)

So, yes - if you live in a gated community or a development subject to a HoA, you would have fees here, as well.  $350 sounds about right -- we did look at one spot in our town right on a golf course but my wife and I both shuddered at the idea of belonging to a HoA and having to deal with other people telling us how long our lawn could be, what color our shed could be, who could park in front of our house, etc.

I would accept this if this was the best option but luckily we had many options and could choose a spot where we get to decide those things and I don't need the approval of four cranky fucks in their 80s.  [A stereotype for HoA leadership is generally retired folks because....well, people who work tend to have less time to obsess about things like parking distance from the curbs, or someone leaving their trash cans out for pick up a day too long after collection.]

Hopefully, your HoA is made up of decent folks just working together to try and keep everyone in a good living space.

We bought a co-op apartment in Brooklyn, and my wife was on the board. S_C's situation sounds similar.

I know several people who joined the HoA / Condo Association boards themselves to "fight the power" from the inside.

Lucky to not have to deal with that, but I am sure many are fine and the horror stories are the ones I hear people griping about.

Speaking from experience, a Brooklyn co-op (and likely S_C's situation) is very different from suburban HOA naysayers. In a co-op, you are all maintaining an urban building(s) and space that you share. The arguments certainly can get heated, but usually, common sense wins out  (e.g., one board member wants prettier exterior doors and trash cans, while one board member wants to repoint the building; in these types of situations, the building is usually repointed). In a suburban HOA situation, common sense is usually left by the wayside to focus way too much on aesthetics/blights.

F Me In The Brain

Got it thanks for the distinction.  Hoping his setup is like what yours was.

hedonist

Spiritual_Chaos said:

hedonist said:

Read the associations' by-laws, if you can - perhaps you have access to those?  You may be assessed down the road for special or one-time costs (upgrades, damage, etc.) not included in the standard amount.

Ours is almost $700 a month!

How big is it? I mean, mine is just 35,5 square meeters. For me and the cat

750 sq. ft., plus a husband and TWO cats! It’s not huge by any means, but works for us despite our collective stuff from over the years. 

Spiritual_Chaos

So weird, the relationship between a bank and yourself. Every dollar/euro/pound/Swedish krona you have go into their bank - and has done for all your life - but they are still not "on your side" but want to trick you as much as possible. 

Saying one interest rate. Then when you counter with another banks offer -- they lower it. Shouldn't they take "care" of me as a customer, and make sure I get the lowest possible interest rent from the getgo? In a parallelll twilight zone society, that could have been how it works.

F Me In The Brain

Yeah, if only they were not trying to make as much profit as they can.  
Good for you, for playing both ends to make your bank come around.
Not playing the field is a fool's game.

The Juggler

Spiritual_Chaos said:

So weird, the relationship between a bank and yourself. Every dollar/euro/pound/Swedish krona you have go into their bank - and has done for all your life - but they are still not "on your side" but want to trick you as much as possible. 

Saying one interest rate. Then when you counter with another banks offer -- they lower it. Shouldn't they take "care" of me as a customer, and make sure I get the lowest possible interest rent from the getgo? In a parallelll twilight zone society, that could have been how it works.

Well the bank isn't a charity. If they gave out bottom of the barrel rates to everyone they'd be out of business sooner than later and people would have less options to obtain financing.

So you gotta dance a little to get peace of mind in knowing you're getting a good deal. Good work out you.

Spiritual_Chaos

The Juggler said:

Spiritual_Chaos said:

So weird, the relationship between a bank and yourself. Every dollar/euro/pound/Swedish krona you have go into their bank - and has done for all your life - but they are still not "on your side" but want to trick you as much as possible. 

Saying one interest rate. Then when you counter with another banks offer -- they lower it. Shouldn't they take "care" of me as a customer, and make sure I get the lowest possible interest rent from the getgo? In a parallelll twilight zone society, that could have been how it works.

Well the bank isn't a charity. 

That. I do understand. I do not think they two need to be mutually exclusive. Or whatever it's called.

Spiritual_Chaos

Third concersation with "my" bank and they still can not match the competitors offers fully. 

But I think I will stay. Because I am a sucker.

F Me In The Brain

How far off are they?
Just do the math on the lige of the loan.  Tony percentage may not mean much but at least that makes you understand what you are giving them by staying.

Spiritual_Chaos

F Me In The Brain said:

How far off are they?
Just do the math on the lige of the loan.  Tony percentage may not mean much but at least that makes you understand what you are giving them by staying.

The competitor 1,23% if I bind the loan for three years.  

My bank "We can only go down to 1,25%" Haha. To not match the last 0,02% when I'm saying I'm leaving after 30 years.... At least they came down from the initial 1,59% when I pressed them about competitors offers.

Was really hoping a third bank - which is smaller, local and cooperatively owned and I have all my insurances at (home insurance, cat insurance and accident insurance) would match it. But they pretty much said "we can't match that, but if you switch over to us you will get a bit of a discount on your insurances so you will only pay 10 dollars more per month than at your current bank". Haha. What a sales pitch!

dankind

Spiritual_Chaos said:

F Me In The Brain said:

How far off are they?
Just do the math on the lige of the loan.  Tony percentage may not mean much but at least that makes you understand what you are giving them by staying.

The competitor 1,23% if I bind the loan for three years.  

My bank "We can only go down to 1,25%" Haha. To not match the last 0,02% when I'm saying I'm leaving after 30 years.... At least they came down from the initial 1,59% when I pressed them about competitors offers.

Was really hoping a third bank - which is smaller, local and cooperatively owned and I have all my insurances at (home insurance, cat insurance and accident insurance) would match it. But they pretty much said "we can't match that, but if you switch over to us you will get a bit of a discount on your insurances so you will only pay 10 dollars more per month than at your current bank". Haha. What a sales pitch!

I smell a budding capitalist!

Spiritual_Chaos

Signed the loan at the bank today. Nothing left to do, but clean out my presemt apartment and move all my things.

Purple Fairy Tree

Congratulations Spiritual- have fun packing and keep us updated xxx

hedonist

That’s exciting!

F Me In The Brain

Let me know where to send your housewarming gift.

dankind

F Me In The Brain said:

Let me know where to send your housewarming gift.

Poor S_C won't know what that is, and he could hurt himself. 

Plus, scissors are better. Cheese/toppings stay put. I think I've already shared that I'm a convert.

GlowGirl

Spiritual_Chaos said:

Signed the loan at the bank today. Nothing left to do, but clean out my presemt apartment and movie all my things.

Congrats. Enjoy the new apartment. The photos you posted earlier look really nice. 

F Me In The Brain

dankind said:

F Me In The Brain said:

Let me know where to send your housewarming gift.

Poor S_C won't know what that is, and he could hurt himself. 

Plus, scissors are better. Cheese/toppings stay put. I think I've already shared that I'm a convert.

HesCalledDyer

Spiritual_Chaos said:

Signed the loan at the bank today. Nothing left to do, but clean out my presemt apartment and movie all my things.

Just seeing this thread & catching up.  Congratulations my dude!!!