Condo versus CO-OP....

[JDY]

Would someone please highlight the differences for me? Thanks!

 

[ducklite]

Condo--you own the space within the four walls, and a portion of common area. You own real property, and your mortgage is for that real property.

Co-op, you own shares (basically stock) in a corporation which owns real property, and as a benefit of you share ownership you are entitled to occupy a certain amount of space in the building, and are entitled to use of common areas.

Co-ops are generally much harder to get finiancing for (except in NYC) and that financing generally carries a higher interest rate because you aren't getting a mortgage. You are getting a loan secured by shares of stock in a corporation. The corporation holds the mortgage, not the individual unit owners.

Hope that helps.

Anne

 

[adamak]

In NYC, condo's price costs slightly more, but co-op's monthly maintence cost is higher. You can write off part of the co-op maint. cost. Co-op is also sometimes more difficult to sell, because people are afraid of the board. Some boards are very difficult and even though the seller / bank has no problem with the buyers, the board can reject that.