Long before the condo-style of ownership, there was the co-operative house ownership scheme, or co-op. Rather than owning your own place, each person had a share in the corporation which in turn owned the whole complex, and each share was proportionate to the comparative scale of the apartment.
The money paid in each installment is put towards regular requirements like water heating, the furnace, building preservation, rates, and insuring the building. You may find that the cost of maintaining a co-operative is more than for a condominium as you will have to pay for all expenses relating to shared spaces. Many times the bill also takes in the cost of electricity and water too. One good thing is that often you can deduct these from your tax though.
Another issue with co-operatives is that you may have to put more money up front and that finding finance can be hard as many institutions will not lend toward a co-op. Also, you will need to be granted permission from the co-op’s ruling body. This can be a long and drawn out process, and will often include all sorts of proof on income and personal references.
There is one advantage that coops have. The transfer of the apartment is a much simpler task, as it is considered to be a transfer of shares.
You may think buying a condo is better, as it is really just like buying your own house. Once again, there are some pros and cons about condos too. First off, there is a significantly higher price for most coops, and high property taxes.
You can finance a higher percentage than you would for a coop, so you won’t need to put a huge down payment down. In addition, the maintenance fees that you will be required to pay are much lower; however, they are not tax deductible.
With a condo there is no ruling body who decides whether you can move in so this part of the process is far less painful. Added to this is the fact that you will be able to use the unit in any manner you choose.
There is a flaw with condos though, as you have no control over your neighbors. Without an approval process, it is much easier to get uncivilized neighbors living beside you.
This individual has been providing advice pertaining to condos for the past two years. Furthermore, this individual is fond of blogging with respect to NYC real estate topics, such as Midtown apartments and Central Park real estate.
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