Home Buying in Long Beach>Question Details

Dan Rizzo, Home Buyer in Long Beach, NY

As a buyer looking in Long Beach, NY, what are some of the key factors that would sway me towards a condo rather than a co-op?

Asked by Dan Rizzo, Long Beach, NY Mon Nov 16, 2009

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Hi D.rizzo

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.

Good Luck!

Allen Bauman
Century21 Yve R.E.
Licensed R.E. Agent
NYS Certified Residential Appraiser
allen.bauman@gmail.com
516-791-3846
0 votes Thank Flag Link Mon Nov 16, 2009
Your question is one that I am asked quite frequently. The advantage of buying a condo is that there is no board approval required. Generally if you are able to get a mortgage you can buy the condo. If you are planning on renting out the condo, you are usually allowed to without restrictions.

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.

GOOD LUCK,

Alex Rubin
0 votes Thank Flag Link Mon Nov 16, 2009
Co-op v. Condo” What’s the difference?



Simply put, the traditional housing “co-op” 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 “co-op”, must include provisions for management and maintenance of the building(s) and “common” 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 “co-op”.

The “condo” advantage of individual unit ownership can be compared to the benefit of being able to “choose” your neighbors in a “co-op” setting, where the application process is very often quite selective. In the sale of a “condo”, once a price is agreed upon, the deal is done; whereas the “sale” of a “co-op” requires approval by the Board of Directors—which can be (and often is) withheld based upon arbitrary selection criteria—with no recourse to the buyer or seller if the “sale” is not approved.

“Co-op” ownership represents an “interest” (i.e. stock) in realty; “condo” ownership is actual ownership of realty. Price differences reflect demographic and geographic distinctions. You decide what’s best for you.

Anna
0 votes Thank Flag Link Mon Nov 16, 2009
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