To be brief Alex and Anna are both correct. Anna has concentrated on the legal differences between a condo and a coop while Alex cut to the chase on the practicality of ownership within each legal structure.
The differences are that with a coop once you have a deal with the seller you still need to be approved by the coop board and they can blow you off for any reason, not tell you why and get away with it.
Also financing options are more limited by the board and lenders.
With a condo you make your deal with the seller, get your mortgage and you own your unit just like single family home ownership.
Long Beach in the past has had a large selection of coops and condo's. But with this market there are fewer units to choose from because owners are not putting them on the market and many who are have inflated prices. Long Beach is a great city(it is a city not a village). Take your time do some research on the streets and buildings you prefer. If I can help contact me for more information or to see some properties.
Century21 Yve R.E.
Licensed R.E. Agent
NYS Certified Residential Appraiser
As far as a co-op, you are usually not allowed to rent them or they require at least a certain amont of time that it must be owner occupied before it can be rented. Many people, especially first time buyers are intimated with the co-op board approval process. These fears are usually overblown. Each co-op board is different and our local Realtors are familiar with the idiosyncracies of each board. Some require larger down payments than others and most want to make sure that after buying the unit, the buyer has enough cash reserves to maintain their monthly payments.
Find a local Realtor who you feel comfortable with and they will be able to help you find a great co-op or condo that fits your needs.
Simply put, the traditional housing â€œco-opâ€ involves the formation of a corporation for the purpose of acquiring title to a multi-unit building and, in turn, leasing individual units (apartments) to the shareholders of the corporation; whereas condominium ownership involves acquiring title to individual apartments or units. In fact, condominium ownership is, for most practical purposes, only one form of cooperative housing and, like the â€œco-opâ€, must include provisions for management and maintenance of the building(s) and â€œcommonâ€ areas, usually dictated by an elected Board of Managers, in the case of a condominium, and a Board of Directors in the case of a â€œco-opâ€.
The â€œcondoâ€ advantage of individual unit ownership can be compared to the benefit of being able to â€œchooseâ€ your neighbors in a â€œco-opâ€ setting, where the application process is very often quite selective. In the sale of a â€œcondoâ€, once a price is agreed upon, the deal is done; whereas the â€œsaleâ€ of a â€œco-opâ€ requires approval by the Board of Directorsâ€”which can be (and often is) withheld based upon arbitrary selection criteriaâ€”with no recourse to the buyer or seller if the â€œsaleâ€ is not approved.
â€œCo-opâ€ ownership represents an â€œinterestâ€ (i.e. stock) in realty; â€œcondoâ€ ownership is actual ownership of realty. Price differences reflect demographic and geographic distinctions. You decide whatâ€™s best for you.