<p>The New York City residential real estate market is so unique that one of our main types of home ownership doesn’t even exist in most of the country – co-ops. Before you can choose a home, you need to know what a co-op is and how it differs from a condo.</p><h2 id="1611dd71-0ec0-406a-a6cd-2a92ecdc59df" data-toc-id="1611dd71-0ec0-406a-a6cd-2a92ecdc59df">The technical differences</h2><p>When you buy a condominium (condo) you buy Real Property, just as you would when you buy a house. You own all of the square footage of the apartment and a percentage of the common areas of the building and owned land. 15-20% of the apartments for sale in New York City are condos. When you purchase a cooperative apartment (co-op), you are actually purchasing shares in a corporation that owns the building. You receive a stock certificate for your shares, and a proprietary, exclusive use lease to the apartment. About 80-85% of the apartments for sale in New York City are co-ops, including virtually all buildings built before the 1980s.</p><h2 id="b0f96019-008b-4c22-8b3d-b3b1ea6cbf4b" data-toc-id="b0f96019-008b-4c22-8b3d-b3b1ea6cbf4b">The practical differences</h2><p>The purchase of a condo is similar to the process of buying a house and less complex than a co-op. Condos are very investor friendly because you can almost always rent them out freely, and they don’t require board approval. They tend to have higher purchase prices than co-ops, but require lower down payments. Co-ops tend to have lower purchase prices than condos, but all purchases are subject to the cooperative’s Board of Directors’ approval, which can add several weeks to the purchase <a target="_blank" href="https://purplerealestatenyc.com/2021/01/09/a-nyc-home-buyers-timeline-8-steps-to-closing/"><strong>time frame</strong></a>. Boards often look for 24-36 months’ worth of mortgage and maintenance payments in the buyer’s bank accounts after closing and usually require a down payment of 20-50%. The co-op board sets house rules that dictate how apartments and common spaces can be used, so co-ops are great if you are looking to live in the home, instead of renting it out. Every case is different, so we can <a target="_blank" rel="noopener noreferrer" href="https://calendly.com/allisondeutsch/consultation"><strong>schedule a chat</strong></a> to talk about your needs and what is the best choice for you.</p><p>&nbsp;</p><h2 id="dcae2193-f34e-483f-897a-d8d7e1ff90e0" data-toc-id="dcae2193-f34e-483f-897a-d8d7e1ff90e0">Condos</h2><ul><li><p>REAL PROPERTY</p></li><li><p>HIGHER PURCHASE PRICE</p></li><li><p>INVESTOR FRIENDLY</p></li><li><p>NO BOARD APPROVAL</p></li><li><p>SHORTER TIME FRAME TO CLOSE</p></li></ul><h2 id="c9dc7799-c81b-472b-85b6-0d68be654642" data-toc-id="c9dc7799-c81b-472b-85b6-0d68be654642">Co-ops</h2><ul><li><p>OWN SHARES IN A CORPORATION</p></li><li><p>LOWER PURCHASE PRICE</p></li><li><p>USUALLY REQUIRES A HIGHER DOWN PAYMENT</p></li><li><p>GREAT FOR FAMILIES AND AS A PRIMARY RESIDENCE</p></li><li><p>LONGER BUYING PROCESS</p></li><li><p>BOARD APPROVAL REQUIRED</p></li></ul>

The New York City residential real estate market is so unique that one of our main types of home ownership doesn’t

Co-ops vs condos: what’s the difference and which is better?

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Co-ops vs condos: what’s the difference and which is better?

Co-ops vs condos: what’s the difference and which is better?

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