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Robert Kravath's Blog

By Robert Kravath | Agent in New York, NY

Why Buy a Co-op Apartment? What Is a Co-op Building Looking For In a Buyer?

Manhattan is unique in having so many coop apartments. About 75% of the apartments for sale are coops, the rest condos. There are many more coop than condo buildings in Manhattan. In general a coop apartment is about 30% less expensive than a condo, assuming the apartments are equal in aspects such as area, views, condition, monthly charges, etc. Because coop buildings have requirements that condo buildings do not have, and because coops do not allow unrestricted renting, there are fewer buyers for coops, so prices for coops are lower.

The average coop building is looking for:

1) 20 – 25% down payment. Can be more for some buildings.
2) 18 months to 2 years of mortgage and maintenance payments in liquid assets after the down payment.
3) A 25 – 28% debt to income ratio.

The monthly maintenance payments are tax deductible. The amount is different for each building.

There are many elements that go into deciding if a coop is right for you. Buying in Manhattan is challenging but ultimately rewarding in many ways. To be successful will require an experienced real estate broker and mortgage expert.

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