Co-ops vs. Condos: The skinny (moved from THE PARKCHESTER INFORMATION NETWORK website)

originally posted on THE PARKCHESTER INFORMATION NETWORK website


Co-op vs Condos (excerpt from am New York)

Co-ops
1. Ownership: Owned by an apartment corporation. Buyer owns "shares" of a co-op. The larger the apartment unit, the most shares one owns.
2. Price: Typically less expensive than a condo due to relative abundance.
3. Financing: Usually requires a 25% down payment.
4. Board approval: Usually all prospective buyers are required to have an interview.
5. Subletting: Usually requires extensive board approval.
6. Monthly fees: Shareholders pay monthly maintenance fees to cover various building expenses. Portions of the maintenance fees are tax deductible.

Condos
1. Ownership: Buyers own property, much like owning a home with a personal deed and real estate tax bill.
2 Price: Usually more expensive than a co-op.
3. Financing: Buyers can generally finance up to 90%.
4. Board approval: Usually not required.
5. Subletting: Offers more flexibility.
6. Monthly fees: Owners pay monthly common charges which are not tax-deductible. The charges are typically less than a co-op's.