Sylvia Not only closing costs--liquid reserves required post-closing.  A co-op that requires 2 years' worth is generally adding another 10%, if not more.  Now you're not spending that money, but you do have to have it, and your retirement accounts don't count.  So a $600K co-op apartment in Manhattan requires $120K down, around $30K in closing costs (5%), and, if the mortgage and maintenance are $4K a month (on the low end), another $96K in liquid reserves, for a grand total of $246K, or ~40%!

Sylvia Not only closing costs--liquid reserves required post-closing.  A co-op that requires 2 years' worth is generally adding another 10%, if not more.  Now you're not spending that money, but you do have to have it, and your retirement accounts don't count.  So a $600K co-op apartment in Manhattan requires $120K down, around $30K in closing costs (5%), and, if the mortgage and maintenance are $4K a month (on the low end), another $96K in liquid reserves, for a grand total of $246K, or ~40%!

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