Home Buying in Lynbrook>Question Details

Perfectphoto, Home Buyer in Lynbrook, NY

Are there any advantages (Co-op - Condo) with one over the other as far as taxes, re-sale or maintenance.?

Asked by Perfectphoto, Lynbrook, NY Thu Feb 7, 2013

Do I need a lawyer or real estate broker to check on the properties financial situation, I have heard that some properties could be in bankruptcy court.

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Answers

7
Michael Richman’s answer
Hi,

The advantage of a condo is that it is easier to buy and sell. The advantage of a coop is that the approval process keeps out marginal purchasers who are more like to harm the financial position of the coop. In either case, your lawyer should look at the financial statements for the coop or condo you decide to purchase.

Michael Richman
Licensed Real Estate Associate Broker
KIAN Realty
450 7th Avenue Suite 1501
New York, NY 10123
212-757-8268 x220
917-991-2528
mrichman@kianrealtynyc.com
http://www.kianrealtynyc.com
0 votes Thank Flag Link Sun Feb 10, 2013
There is a big difference betweent the two. When buying a co-op, you're actually purchasing shares of a corporation, which translate to a lifetime lease on the co-op unit. You do not pay real estate taxes on a co-op but you typically pay a higher monthly maintenance fee compared to a condo unit. Co-op boards can reject you even though a bank can approve you for financing. They can also dictate what your minimum down payment has to be, typically 15-20%.

A condo is real property. You'll pay taxes and maintenance (also known as homeowner dues). The condo will not set a minimum required down payment but they will sometimes review your financials and credit as well. The down payment amount is determined by your lender.

In both co-ops and condos, your lender will review the board's financials. Co-ops must be approved and condo's financials must meet Fannie Mae's guidelines.

You should always allow your Loan Officer to look into the co-op or condo you're interested in pursuing to make sure they meet all requirements. This way you don't tie yourself into a deal for months and it doesn't even work out!

It's a simple as the way Josh described it below. Homeowner's insurance, is your hazard insurance. The lender requires that you carry a hazard insurance policy to cover yourself and the lender from most physical damages to your property. You elect the company from whome youd like to purchase hazard insurance from.

Private mortgage insurance is a totally separate policy that your lender obtains to protect a percentage of the loan amount, again protecting the lender.

Javier Meneses
NMLS #23130
Senior Loan Officer
Sterling National Bank
jmeneses@snb.com
(516) 606-9648
1 vote Thank Flag Link Thu Feb 7, 2013
Coop you own shares, with a Condo you have a deed.
0 votes Thank Flag Link Tue May 14, 2013
Call me at 516-815-2434 if you would like to view condo's or coop's
Flag Tue May 14, 2013
First steps:

1. Meet with a Local Mortgage Banker to get prequalified for mortgage financing. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.


2. Get a referral to a good, local, real estate attorney. Call the attorney, retain the attorney so you have her information handy when you make an offer. Having that information at time of offer helps you demonstrate to the Seller how serious you are, and they will consider your offer with more interest.

3. Line up a Home Inspector. A good home inspector will scare the heck out of you: that's what you pay him for! But you'll concentrate on the fundamentals of the property: roof free of leaks, plumbing, heating and electrical up to code and in good working order. Again, when you make an offer and you have your Home Inspector ready to go, your offer will be considered with much more interest by a Seller because you truly have your "ducks in a row" and your preparation demonstrates your serious attitude about conducting the purchase transaction in a timely manner.

4. Find an experienced Local Realtor who works in your desired shopping area. A serious pro Realtor will refuse to show you homes until you are Prequalified for mortgage financing. Don't take offense! That Realtor doesn't want you to be disappointed and wants you to have a smooth experience as you shop for your new home.

Put together your Team of real estate professionals and shop 'til you drop!

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

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0 votes Thank Flag Link Tue Feb 19, 2013
One last thing... Yes in the state of New York to buy anything you need a lawyer. You would want one anyway the lawyer is for your best interest.
0 votes Thank Flag Link Thu Feb 7, 2013
Easy terms..

Coop is a share, a certificate. You can write off the whole maintenance. Maintenance is usually more then a condo reason being heat, hot water, real estate taxes, shoveling, maintenance for the building is all included in the maintenance.

Condo is a deed. You can write off the whole maintenance. Maintenance is much less like $100 or a little more depending, however you have to pay heat, hot water, real estate taxes, removal of your own shoveling depending on the condo, water sewage and home owners insurance.. Jeannette Batsikas everyone answers were helpful as well.
0 votes Thank Flag Link Thu Feb 7, 2013
Co-op ownership represents an interest (i.e. stock) in realty; condo ownership is actual ownership of realty; for any specific tax questions, it's really in your best interst to consult with your tax professional, and or, attorney. As to the property's financials--yes it's very important to review with your attorney the building's financials, along with all other related paperwork.
0 votes Thank Flag Link Thu Feb 7, 2013
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