A condo is considered real property and you actually own the unit. You will pay yearly property taxes and monthly common charges. There are tax exemptions that you can apply for if you qualify. I can discuss that with you separately if you like. If you don't need to live in NYC, Westchester County is a great option with many affordable options.
Accredited Buyer Representative
Licensed Associate Broker
William Raveis Legends Realty Group
The main difference between a coop and a condo is the type of ownership. Here's the main points:
- cooperation owns real property
- individual owners owns shares in a cooperation
- you get a 'stock certificate' & 'proprietary lease'
- board of directors or coop board approves tenants/buyers, leases and sales
- may have sublease restrictions
- monthly maintenance includes heat & hot water, maintenance and utility charges for common areas, and real estate taxes. It may also include mortgage interest if the building has a loan, which is tax deductable
- there is usually a flip tax (sales charge) when an owner sells and application fee, move-in charge for buyers
- in NYC, prices tend to be lower to a comparable condo
- owns real property
- you get a title at the end of the purchase
- monthly common charges covers maintenance of common areas, property managers and contributions to a reserve fund
- owner usually covers all utilities for the unit
- owner has to pay their own taxes
- has a condo board, tends to be more liberal than coop boards
- leasing a condo out is not a sublease and usually does not require board approval
- sale of a condo does not require board approval
- sale price tends to be higher
- transfer taxes at closing
I hope this answers your question. If you need further assistance, please feel free to contact me.
You should shop around and see what the costs involved are in the areas you're interested in. Good luck!
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Co-ops (short for "cooperatives") are apartments buildings owned by a corporation. Individual tenants do not own their apartments in exactly the same way that they would a condominium or home. They actually own shares of stock in the corporation. These shares are apportioned based on the size and floor level of their apartment, and ownership is established by a stock certificate and occupancy is governed by a "proprietary lease". The corporation pays all real estate taxes, maintenance expenses, and the underlying mortgage on the building. The co-op owner's portion of the payment depends on the number of shares owned in the corporation.
In NY Condos are pricier. closing costs are higher in condos too.