If i pay a co-ops for two bedroom and a bath by cash, hoe much money should i need to pay for other fees like property tax and something/

Asked by Kay, Norwalk, CT Sat May 5, 2012

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Stephan von…, Agent, Darien, CT
Sun May 6, 2012
Hi Kay -
A Co-Op is a corporation, where all the shareholders are the owners of the properties included in the corporation. This is not the same as for a Condo complex. The number of shares granted to each shareholder is dependent on the size of the unit owner - i.e., a 3 bedroom unit owns more shares than a 2 bedroom, etc. As a corporation, you don't pay taxes directly for individual units - the corporation pays all taxes as a whole. Each unit (shareholder) pays a monthly fee to the corporation (common charges) that include taxes, debt interest & principal, insurance, service fees like water, sewer and sometimes electric and heating, property maintenance, garbage, etc. As a corporation, it gets to write off (deduct) from its taxes much of these operating expenses and capital expenses. This deduction is then passed down to all the shareholders. Many well run Co-Ops may have $1,000 (or less, or more) per month of common charges, but then have a 60% to 80% deduction on those expenses making for a very low operating cost for the shareholders. However, should a Co-Op have significant capital projects or heavy debt loading, there is less of a deduction for the shareholders which leads to higher monthly fees. The key is to understand a specific complexes financial standing and projected capital expenses. This way you can calculate your specific costs as a shareholder. Of course this element is also very important from a property value perspective. There are several Co-Op's in the area - some better than others. Search wisely and be sure to obtain full financial disclosure before purchasing.
I would be happy to help you in your search - just let me know.
Cheers -
Stephan von Jena
William Pitt Sotheby's International Realty
147 Rowayton Ave., Rowayton, CT 06853
203-434-8472
svonjena@wpsir.com
http://www.stephanvonjena.com
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Todd Turcotte, Agent, Norwalk, CT
Sat May 5, 2012
Hi Kay,


If I understand your question correctly, you are basically asking how much the common charges and taxes would be on a 2 bedroom, 1 bath co-op.

For co-op's in this area, you would be looking at about $900 - $1,200 per month which includes your common charges, taxes, and in some cases your heat and hot water as well.

Co-op ownership is a bit different than owning a condo.

For specific questions, feel free to contact me directly.


Sincerely,

Todd Turcotte

Milligan Realty, Norwalk
Web Reference:  http://www.toddturcotte.com
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