How to Decide between a New York Condo or Co-op?

How to Decide between a New York Condo or Co-op?

 

 

According to the latest census New York State holds seventh position in the most densely populated states of the U.S. As such acquisition of place to live can be a daunting experience. So how to decide between a New York Condo or Co-op?

 

Difference between a Condo & a Co-op 

 

A co-op is actually also an apartment like a condo, except that it belongs to a corporation. So when you purchase a co-op you actually buy shares of that corporation and not actual property. The shares give you the right which gives you an exclusive lease and instead an owner you become more of an investor in the co-op.

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Generally, the bigger the apartment, the greater your share the co-op. The co-op usually maintains and governs itself through a board made up of the residents.  Since all residents are stake holders, they conduct a very rigid approval process.  Residents also have to pay for the upkeep of the building, staff salaries, real estate taxes on the building etc.

 

If you purchase a condo, then you become the owner of that apartment, just like you would a house. The buyer gets the deed of the condo, and each apartment gets its own tax bill unlike in co-op where everything is bundled together into monthly bills. Furthermore, condos tend to be newly constructed buildings and have additional benefit of common amenities like gym, movie area and rooftop BBQ spots.

 

Price: Co-op Vs. Condo

 

There are significantly more co-ops than condos in New York City, however that scenario has been changing for the last few decades. In general co-ops tend to be cheaper in term of per square foot comparison. Condos have greater closing costs; if it is financed there will be mortgage tax and title insurance, co-ops have neither. With condos there may be greater flexibility is your down payment is small, some condo boards demand a higher down payment. If you are interested in a luxury condo contact Noble Black, the top real estate agent in Manhattan, NY.

 

Location and Facilities

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A lot of new the construction in New York tends to be that of condos and not co-ops. For the same number of bedrooms the newly constructed condos usually have a few hundred square feet of extra space compared to old buildings in which most co-op are located.  Also because the construction is newer, it is more chic with many luxuries like pools, concierge service, fitness centers etc.

A lot of the pre-war classic, buildings were converted into co-ops in the 1980s. Such buildings have the more opulent décor like fireplaces and crown moldings. Location wise buildings near the financial sector tend to be condos while those near Central Park are co-ops.

So how to decide between a New York Condo or Co-op? I guess it comes down to how much money you have and personal preferences. Do you prefer the convenience and facilities the newly constructed condos have to offer or would you rather savor the historical architecture?