Condo or Co-op? The age old question.

So - you're ready to buy in Manhattan! Congratulations on taking the first step - deciding to do it. You're searching the internet, finding listings, deciding on neighborhoods, but there is still a lingering question in the back of your mind...

What is the difference between a CONDO and a CO-OP?

We're going to try and break it down for you the best we can.

Interested in a CO-OP? Here's what you need to know...

• When you buy a co-op, you do not own your apartment. Sounds strange? Instead, you own shares of the co-op corporation that owns the building.
• You need to be approved by the Board of Directors. This process is time consuming, and often requires a large amount of documents pertaining to your finances, current living situation, and employment.
• It is harder to sub-lease your co-op, but this depends on the individual building.

Okay, those are the facts. So tell me about what I'm paying...

• The good news is, most co-ops tend to be less expensive than the comparable condo.
• Monthly fees? You'll be paying maintenence fees that cover heat, hot water, insurance, staff salaries, and real estate taxes. These monthly fees are usually higher than the monthly fees for a condo because they cover the underlying mortgage for the building.
• Bright side of the maintenence fees? Some are tax deductible.

Okay. That should just about cover the basics of a Co-Op. Now how the heck is a condo different?

What is a condominium?

Buying a condo is much more like buying a house. When you purchase your condo, you own it! Each unit has its own deed and its own tax bill.

So why go with a condo?

• No board approval!
• More flexibility to sublet!

But let's talk money...

• Condos are generally more expensive than their comparable co-op.
• However, in most cases, buyers are able to finance a larger portion of the purchase price (up to 90%), and can put less money down.
• Monthly fees are much less than a co-op.
• But - they are not tax deductible.

Still have questions? Want advice as to which route to take? We're here to help! Shoot us a comment and we'll get back to you right away!

- Team Levan