Home Buying in Yonkers>Question Details

Nadira Ambani, Home Buyer in Richmond, VA

if i buy a coop do i have to pay a monthly maintenance fee?

Asked by Nadira Ambani, Richmond, VA Sun Sep 22, 2013

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8
Yes, monthly maintenance fees need to be paid...
1 vote Thank Flag Link Mon Sep 23, 2013
Yes co-op's always have a monthly maintenance fee which typically covers the property taxes as well.
1 vote Thank Flag Link Mon Sep 23, 2013
Hi, yes there is always a monthly maintenance fee. This includes your pro rata share of the buildings overall taxes, maintenance of the property, building insurance, and whatever else they need to cover.

Christopher Pagli
Accredited Buyer Representative
914 406 9023
1 vote Thank Flag Link Sun Sep 22, 2013
Condominiums (condos) and cooperatives (coops) are both affordable alternatives to buying a house. If you are considering home ownership, but don’t want a house, consider these options. However a condo is not a coop, each has its advantages.

Ownership:
A coop is an asset like any other piece of real estate except you are not really buying the property. When you buy a condo you are buying the actual site (like a house). In a coop, you are buying shares of a corporation (which is leasing you back the place where you will live). It is a North-Eastern phenomenon that makes ownership affordable.


Style:
Both condos and coops can come in different styles. Both come in a townhouse style which is a multi level attached home that usually has a yard in back. Both come in apartment style, which can be a mid-rise building (6 stories or less) or high rise building. Some come in garden style which is a one or two story attached building that usually opens to a great courtyard and has beautiful grounds. The point is the style does not make it a condo or coop, the ownership does.

Price:
Generally condos are much more expensive than coops of the same size and location. Coops have a common charge which usually includes maintenance and taxes. Condos have a maintenance charge only. You pay your own taxes separately. Some cover utilities, some don’t.

Restrictions:
Many co-ops have restrictions on pets, renting, parking waitlists, and income requirements. Most have down payment requirements of 10-15%. Others are more. This is a board requirement, so neither you nor the seller can avoid this. The only way around this is to find a sponsor unit that does not have this requirement. You need to discuss these restrictions with your realtor before you go out to see co-ops.

Buying & Selling:
The process is like buying a house for both except, when buying a coop usually you must get approved by your fellow share holders (the Board). Because you are entering into a business relationship with your fellow shareholders, they will require you to submit an application with your financials etc. They can reject you, and are not required to disclose why. Usually it is a financial reason. Coops can take longer because of the approval process.

Which is harder to sell? Neither. If you price them right, they will both sell. You can purchase a coop as low as $9,000 in Cold Spring (I’m not kidding, I did the search), or a condo for $5.2 Million at the Ritz. If you need help…@AskReynet.
Web Reference: http://AskRey.net
0 votes Thank Flag Link Mon Sep 23, 2013
depends on the coop.

Get with your Realtor on the different coops in your area.
0 votes Thank Flag Link Mon Sep 23, 2013
Maintenance does include all the things mentioned before and monthly payment for the underlying mortgage, if any. Good news is, you can deduct 40% - 60% of the maintenance for income tax purpose.
0 votes Thank Flag Link Sun Sep 22, 2013
Absolutely. This how the corporation takes care of the building, pays a super etc.
0 votes Thank Flag Link Sun Sep 22, 2013
Co-ops, condos and homeowner associations all require a monthly maintenance fee.
0 votes Thank Flag Link Sun Sep 22, 2013
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