If you are a NYC property owner or are currently looking to buy, you are aware of the continuing debate over which is better – New York City condos or coops. though New Yorkers will always argue over which one is better, there is definitely a better choice for you. The first step to understanding if a New York City condo is your best option or if you belong in a coop is understanding the difference between the two.
What is a New York City condo?Buying a condo is similar to purchasing a house in that your unit is entirely yours. If you choose to buy a condo, your unit will have its own deed and tax bill. New York City condos are not controlled by a board and maintenance fees are relatively low.
Financing your New York City Condo
When purchasing a New York City condo, you are often able to finance up to 90% of the purchase price. This means that you do not need to put as much money down as when purchasing a coop. Condos are, however, more expensive than coops. Monthly fees, called Common Charges must be paid to finance the upkeep and maintenance of common areas.
Defining Coops: How they differ from New York City CondosMost NYC apartments available for purchase are coops, so if you are looking to buy, this option will give you the greatest variety. If you are looking to buy in a pre-war building, this is most likely your only option.
The most important thing to understand about buying a coop is that you are not actually purchasing your particular apartment, but rather shares in a coop corporation which owns the building. Like a condo, there are monthly maintenance fees, although they are quite a bit higher.
All coops are under the guidance of a Board of Directors. What does this mean for you? This means that you will have to be approved by the board before you are able to purchase the apartment. This process is not so simple. It is often lengthy and rigorous. Boards are known to ask for extensive information regarding finances, employment, and even your personal history.
Financing your New York City Coop
Financing on New York City coops is often limited by the Board of Directors. Upon purchase, many Boards require a cash down payment of at least 25% of the total cost. Some more exclusive coops do not allow any financing at all.
Now that you are familiar with the basic differences between New York City condos and coops, which one is right for you?