Home Buying in Elmsford>Question Details

timex177, Home Buyer in Bergenfield, NJ

what is better condo or house or coop? What's the best way to determine what works for me?

Asked by timex177, Bergenfield, NJ Mon Oct 29, 2012

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Hi, There is a big difference between a coop and a condo. A coop is tun through a corporation, the shareholders being the people that live in the building. You do not technically own the unit (and are not responsible for the inside) but own shares in the corporation. This entitles you to a proprietary lease and you pay monthly maintenence rather then property taxes. Your maintenence includes your pro rata share of the entire buildings property taxes, care for the grounds, etc.

With a condo you own the unit and are responsibile for what is inside. You will pay property taxes and also monthly common charges.

Coops usually have a minimum down payment requirement which is rarely below 10%. They scrutinize your finances to make sure you have solid monthly income, great credit, no judgements against you, strong reserves in the bank, and a debt to income ration that meets their requirements. You will fill out a large application package and have to go in front of a board for approval, unless it is a sponsor unit (these are units sold by the sponsor for the first time and dont need board approval). This art of the process comes when you have a fully eecuted sales contract and also a mortgage committment from your bank. You can be turned down for any reason and possibly waste all that time.

With a condo you don't have to go through the board approval process. Coops are a good option if you are looking for the most affordab;le form of ownership but thats pretty much it.

I hope this helps, fewel free to message me with any other questions.

Christopher Pagli
Accredited Buyer Representative
William Raveis Legends Realty Group
1 vote Thank Flag Link Mon Oct 29, 2012
look at what's available in your price range for all 3 property types.

co-op and condo's = lots of stuff taken care of for you as part of home owner association fee

condo - you own unit
co-op - you own shares in the corporation that owns all the units. you get a proprietary lease to a specific unit (the unit you're buying).

home - no association fee; but you'll still be paying in other ways. you take care/maintain property yourself and or hire services/repairs.

it depend on the community, but in general I find that condo's have greater appeal than co-op's.
0 votes Thank Flag Link Thu Jan 2, 2014
As others have pointed out, it's a personal choice.

A small condo assoc. can be great…or it could suck. We are currently in a 4 unit building and 1 owner has made it his goal to make everyone's life miserable, because his is. We've had to take him to court and have paid thousands to an attorney to represent the assoc. Not worth it. On the other hand, you could have 4 great people and you all get along and have cookouts, and everyone shovels snow, etc.

A large condo assoc. can be either/or too. It take a percentage of approvals to get things done and it could be that the majority don't agree with painting the building, for example, so you have to wait it out.

We are moving to the Elmsford area and are going with a single family this time. This also has issues as the people who live next to you could play loud music, have parties to all hours… You just never know.

Good luck!
0 votes Thank Flag Link Thu Jan 2, 2014
Only you can decide what's best for you based on your financials, wants, needs, lifestyle, etc...
0 votes Thank Flag Link Mon Oct 29, 2012
It really depends on your personal situation. If you have 20% to put down then its really your personal preference. If you want to take advantage of the FHA government program then you will want to look at 1-4 family homes or FHA approved condo's. Also, if you don't mind being a landlord then a two family home might be a smart decision for you since you will have someone paying about half of your mortgage and you will be able to claim more deductions on your tax returns.
0 votes Thank Flag Link Mon Oct 29, 2012
Down payment is a deciding factor. If you don't have a minimum of 20% to put down only look at condos.
0 votes Thank Flag Link Mon Oct 29, 2012
Hi ...really it is a financial and personal choice. You should speak with a Mortgage Banker and find out what is financially possible and then go from there. If you need numbers of Mortgage Bankers, just give me a call and I will help!

Thanking you in advance for your attention to this matter.

Century 21 Schneider
0 votes Thank Flag Link Mon Oct 29, 2012
Many factors can help you determine whats best for you. Family size , money saved , location , etc.... it's pretty much a personal choice. I'd speak to a real estate agent in your area , they will help
You determine what will work best for you. Feel free to call me if you have further questions .
0 votes Thank Flag Link Mon Oct 29, 2012
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