You may be considering buying a condominium or cooperative unit in New York. However, like many people, determining which one is the best option for you may feel difficult. There are pros and cons to both condominiums and co-ops that you need to be aware of.
Cooperatives
A housing cooperative is a legal entity such as a corporation, association or society that owns real estate. Its residents jointly own the cooperative’s building.
One of the main benefits of co-ops is their price. Co-op housing typically costs less than condominiums because the units are kept off the market, the government subsidizes their mortgages and the condominium fees cover only property-related items.
When trying to decide between condominiums and cooperatives, you should consider that co-ops are environmentally friendly. Since co-ops are non-profit, they use fewer resources and services, such as heating and cooling, than condominiums do.
However, there are some downsides of co-ops as well. For example, they require a high down payment, which can be a big obstacle for many people. Co-ops also have strict guidelines about what you’re allowed to do with your unit. If you’re a private person who owns dogs or cats and enjoys hosting parties frequently, buying a co-op may not be for you.
Condominiums
Condominiums are a type of housing where a person owns the land and building that they live in. Condominiums are legally owned by their residents, but most condominium units also come with an individually leased or rented portion of common property.
Condos can be more expensive than co-ops because condominiums are on the market and include more services. Also, some condos have limited space. On the other hand, condominium units are more flexible than cooperatives because they allow residents to customize their units.
Are you thinking of buying condominiums or cooperative real estate? If so, it would help to consider these pros and cons before making a choice.