Cesar,

Co-ops are generally cheaper because they're more difficult to purchase and sell. See the link below for a better explanation. Read Mitchell Hall's answer as the co-op information and requirements he lists are common to all co-ops. I don't think it was mentioned prior, but it's common for co-ops to require personal interviews.

What is the risk of the building needing renovations, etc? In the case of co-ops, who is responsible? Your real estate attorney can conduct a review of the co-ops financials to help estimate any future expenses and assessments. The co-op community will be responsible for sharing the costs of renovations and improvements to the building.

Who manages the building? The co-op's board will be responsible to make decisions concerning improvements, expenses and social life (enforcement of co-op rules).

Will I expect to do it at some point? I don't think it's required that you run for election.

Will I have a hard time re-selling it? Perhaps, perhaps not. The financial disclosure of a potential buyer is intrusive, the financial requirements may be a hardship for many buyers, but there are buyers that seek co-ops for the value, stability and generally bigger apartments.

Great questions.

Hi Cesar,

thanks for your answer, very helpful. However, i am still unsure about eventual expenses. What is the risk of the building needing renovations, etc? In the case of co-ops, who is responsible? Who manages the building, the actual board members. Will i be expected to do it at some point? And will i have a hard time reselling it?

Hello Cesar,

First may I expalin the difference between the two. When purchasing a co-op, you are buying shares in the corporation. When buying a condo you are purchasing real property. A co-op's maintenance could be as high as $800.00 per month, as opposed to $300's for a condo. However, the prices of condos are usually double that of co-ops. So the answer lies in what you are prepared to spend. It is better to purchase a condo, but purchasing a co-op is better than paying rent to a landlord, which does not give you any tax relief. If you have any questions, from one Cesar to another Cesar do not hesitate to contact me.

Cesar Galindo
Cgalindo@prosperityREG.com

Hi Cesar,

A Condo is real estate property you own with a deed, v. a Co-op, which provides a master lease (personal property) and shares in an entity (personal property).

Regards, C.