When you purchase a co-op, you do not own any real property. As previously mentioned you own shares of stock in a corporation and the corporation is the building you are living in. Most co-op in this area do not allow you to rent out your unit. Some allow you to rent out the unit only after living there for a year. I have seen co-ops that only allow the owner to rent out the unit once. It is best to check with the board of each co-op to see what their restrictions are. In most co-ops all of the utilities are included. Also, most co-ops have an underlying mortgage. Many of these co-ops went through a renaissance and renovated their common areas. The building took out a mortgage to cover the renovations so part of your monthly fee goes to paying off that loan. Each co-op only has one tax bill associated with the building so the monthly fees include each shareholder's portion of property taxes.
In condos you own real property. There is rarely a restriction where you cannot rent out the unit. Most condos have separate utilities so the monthly maintenance fee only covers the common amenities like doorman gym, etc, along with the water, sewer, and common building insurance. In a condo you will pay your own separate property taxes.
The biggest issue with co-ops is that they are difficult to finance. I recommend speaking with Wells Fargo, Chase, or Citi Group. Smaller banks rarely finance them. Stick with large major banks. Financing is something to consider in the future when you go to re-sell. There are many more financing options for a condo buyer out there versus a co-op. The pool of people who can get a condo mortgage is much larger than ones who can get co-op financing and receive board approval.
I hope this helps. Please let me know if you have any additional questions.
Walter J. Burns
1 Newark St.
Hoboken, NJ 07030
201-653-8488 Ext: 230