In the recent weeks a new concept in non other then Chelsea in NYC is doing sort of a controlled apartment sales with a few buildings in the area. According to the article this is a sort of lottery and I would agree if the property really became yours but there is a huge deal breaker in the fine print. The fact that you cannot profit from the sale of any of these units should you be a lucky winner of getting approved for a purchase on one. Let me repeat that, you get chosen out of a bunch of applications to be approved for purchase, so you do purchase the unit, however while you purchase the unit and apparently own the unit you are not entitled to a profit when you do decide to sell the unit.
Between 30,000 and 50,000 people sent postcards to the city by last Friday’s deadline in the hopes of winning a spot in the middle-income Chelsea co-op, where apartments start at just $64,000.
Only 300 people will be picked for Penn South’s waiting list to buy studio apartments, 600 for one-bedroom apartments and 300 for two-bedroom apartments.
“Today, we retrieved 10 bags full of postcards from applicants to the Penn South Mitchell-Lama affordable housing lottery,” the city’s Department of Housing Preservation and Development, which is running the lottery, wrote on its website.
“We estimate that the bags hold between 30,000 to 50,000 postcards. Please note that this is a limited lottery and only applicants whose postcards are drawn in the lottery will be notified. Good luck!”
Socialism or equality, whatever it is it’s weird
I guess this is the way things are going to get done in the future, real estate creates wealth, creates retirement, creates estates and assets for children upon death. Not anymore, not if you buy a Chelsea apartment on this expanding list of apartments. While you do buy it cheap, it’s kind of a bummer owning real estate, surely paying that common charge bill they have on the higher side, where is the benefit of owning the real estate? Why not get into a rent controlled apartment in NYC, another thing that thankfully never caught on outside of NYC as far as I know.
The name of the game is being able to make profits, just as if the market tanked, would the seller still be entitled to there original purchase price or is this simply a stop on profits?