You have finally decided to stop renting and invest in buying your own place instead. You start looking for apartments for sale in New York, and you find yourself confused by the sheer variety of options in real estate: co-ops and condos.
You may have heard of them before, but you don’t know what their differences are, or if you want to buy one or the other. So let us give you a brief what-to-know about the confusing world of real estate in New York.
Co-ops are a type of housing that is owned by a corporation that you become a tenant of by buying shares in the building. The building itself is owned by a corporation whose members are the shareholders.
The corporation is responsible for maintenance and major repairs of the building, and the shareholders have voting rights equal to the number of shares they purchase.
When you buy a co-op, you must be a member of the building and pay monthly maintenance fees and real estate taxes.
A co-op has a Board that enforces the rules and manages housing-related disputes. There is an annual election for the board in most co-ops, and members can run for a board position.
The board often has a package of rules, and the number and exact details of these rules may vary from co-op to co-op. They usually include rules for when you can have guests, the number of pets allowed, and the general appearance of the units.
If you decide to sell your apartment, you must offer it to the co-op first and at a price you want to sell it. They will then decide to accept or reject the offer.
Condos are a newer form of living in which the building is owned by an individual. They are very similar to co-ops in terms of the form of ownership, but condos are not owned by a corporation but instead an individual owner in a community of condo owners.
This means that the fees and taxes are much lower, and there is less of a formal bureaucracy enforcing rules. You don’t have to be in a corporation to own one, and it is not always as time-consuming.
However, condos do not have the same guarantee of low-maintenance fees and generally have more rules than co-ops do. These rules can include not putting posters on the walls, the number of pets, and the number of guests allowed. The condo owner’s association will examine these rules, decide if you are violating them, and charge you for any infractions.
In addition, most condos require you to sell your unit to the condo owner’s association. This means that they set your price and conditions, and they can be changed at any time.
Which is Better?
If you are looking for a unit, your decision will probably come down to your preference. The thing is, both of them have something good to offer, and if you are inclined to invest in one over the other, it may just be an indication that your pick would give you better options in the long run.
Just be sure that your choice is indeed beneficial for you so that you will not be wasting money on your first try.
Choosing whether to buy a condo or a co-op depends on your lifestyle and your budget. Both have positive and negative aspects to them, but if you really have to choose one or the other, we recommend looking at the journey rather than just the destination.
The best apartments for sale in New York will be the ones that fit your budget and need the best.
If you are looking for beautiful and affordable apartments for sale in NYC, look no further than our amenities and properties here at Lincoln Towers. We are an 8 building apartment complex, located on the prestigious Upper West Side in NYC. Call us today for more information about our available units and their variety of amenities.