Hi John,

When you purchase a co-op you do not own your unit (apartment), but as a stockholder you own shares to a corporation. The corporation has title to the unit, land and building, and there is a board of directors which is elected, and makes decisions as to which buyers they approve or disapprove when purchasing units. Sometimes these Boards can be very strict when approving new buyers with regard to income, background and credit. Sometimes they make rules regarding lifestyles such as requiring for carpeting the floors, pets, and subletting. You pay a monthly maintenance which is usually higher than a condo, and these charges vary - some include only heat, others include heat, gas and electric.

When buying a co-op, there is some risk if the corporation is not financially sound, that the property can eventually be sold. This doesn't happen often, but it can happen. Taxes with a co-op are included in the maintenance, along with the mortgage if applicable on the building and the taxes and interest on the building's mortgage are deductible. Also important: Some co-ops have a flip tax which the owner must pay upon the sale of the unit. It can range upwards of 25% or more of the sale price.

When you buy condo, you own the interior of your unit. You have fee simple title to your unit, and to other parts of the building (common elements) such as the land. Condo owners pay their own property taxes; it is not part of the maintenance. The common charges will usually cover interior maintenance and landscaping, and are almost always substantially lower than a co-op. However, the sale price of condos are almost always much higher than a co-op, so normally you need a higher down payment and of course, the mortgage will generally be higher depending of on location and desirability of the building. Since you are coming with $400,00 in cash, that gives you much more flexibility to look into purchasing a condo. A condo purchase would generally provide you with more independence regarding your unit because you wouldn't be depending on a Board of Directors. So our feeling is, your best best would be condo.

We are very active Realtors with alot of experience selling co-ops and condos in Brooklyn and if you are looking in Bensonhurst/Bay Ridge we can definitely help you. We are very familiar with those neighborhoods. Please feel free to call us at 917-593-4068 anytime so we can discuss your needs.

Hope this helps, and we look forward to speaking with you!

Best regards,

Bonnie & David

John, essentially with a co-op you are buying shares in a corporation. Shares are based on the sf of your unit and will include property taxes, insurance, heat/hot water, maintenance of the building, (including the exterior, roof, plumbing electrical, heating, central air condition systems, elevators etc, landscaping, snow removal and services of building management. In a condo you own the apartment and generally pay for your own expenses but will probably pay more for your unit, directly pay for taxes, insurance, heat and other expenses.

If you are interested in remaining in Bath Beach,or surrounding areas call or email me and I'll talk you thorugh the process . Im a brokder with Pecoraro Realty on 18th Ave/75 th street and own a facilities management and real estate consulting company in midtown. I won't disappoint and happy to help you out.

347-860-5819
facilitate@optonline.net

Thumbs up to you, David and Bonnie. That was a great explanation of the differences between a co-op and condo. I could not have done it better myself!!

Sincerely,
Grace Morioka, SRES, e-Pro
CID Specialist
Area Pro Realty
San Jose, CA

John,

I forgot to mention that on our Trulia blog, and also on our Best Homes In Brooklyn blog, we wrote two articles on co-ops: "Co-op Pitfalls and 4 rules to remember" and "Additional co-op pitfalls." Here are the links. If they don't work directly, just paste them in your browser.

http://www.trulia.com/blog/david_rogoff/2009/01/additional_c…

http://www.trulia.com/blog/david_rogoff/2009/01/co-op_pitfal…

In many cases, a co-op is the best choice for a buyer. But there are certain precautions every buyer should know about to avoid disappointments, and we've experienced many of these situations when we've sold units and it varies from building to building. We will be closing shortly on a co-op which was a foreclosure and we have a contract on another unit where the Board requirements were very strict, particularly with regard to down payment and income requirements. We also have a longstanding contract on a co-op which has not yet closed due to extensive Board approval phases, which is now in stage 3, even though the buyers are qualified.

We will answer any more questions; feel free to e-mail or call us.

Best regards,

Bonnie & David
E-mail: david@BestHomesInBrooklyn.com

Dear John:

Read my blog entry regarding the difference between co-ops and condos here: http://tinyurl.com/qh8zle

I have several co-ops and condos listed in the area you are looking. If I can be of further assistance, please let me know.

Sincerely,
Mitchell S. Feldman
Madison Estates & Properties, Inc.
Office: (718) 645-1665
Email: MitchellSFeldman@aol.com