Coops, which are also known as cooperative housing projects, are not a foreign idea. In fact, these were around before Condominiums began. Coops are apartments that are sized in an appropriate way to the number of shares you owned of a certain company. Meaning, the more shares you have, the more space you have.
There is a monthly fee you will have to pay if you own a coop. These will contribute to staff salaries, insurance, real estate taxes, heat, and of course hot water. This monthly fee can certainly add up if property taxes, utilities, and maintenance are added on. For some, owning a coop is too pricey on a month to month basis, but you should remember that some may be tax deductible.
There are a few negatives about coops you will have to keep in mind. A higher down payment is usually required, and it required a strict and time consuming approval process.
There is one advantage that coops have. The transfer of the apartment is a much simpler task, as it is considered to be a transfer of shares.
You may think buying a condo is better, as it is really just like buying your own house. Once again, there are some pros and cons about condos too. First off, there is a significantly higher price for most coops, and high property taxes.
You can finance a higher percentage than you would for a coop, so you won’t need to put a huge down payment down. In addition, the maintenance fees that you will be required to pay are much lower; however, they are not tax deductible.
The other advantage a condo has is the fact that there is no strict approval process you need to go through. This can certainly free up a lot of your time.
There is a flaw with the condos though, as you have no control over your neighbors. Without an approval process, it is much easier to get uncivilized neighbors living beside you.