Hi everyone! Does anyone know the positives, negatives etc.. .about Co-ops? It is looking that this is all we can afford at the moment, but I need to know the deal with them? I have researched very little!?!
Does anyone know of any good areas to look for co-ops? Obviously you can see that I am new to all this House-buying business!!?!?! argh! Thanks. -sue
nov04LIbride
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Re: Co-Op vs. Condos vs. Home?
Co-op means that when buying you will have shares in the entire complex. It is governed by a board, who then decides how much $ will be allocated for upkeep, etc. Generally co-op prices are lower, but maintenance fees for ones we saw ranged from $650-800 a month, in addition to mortgage, etc. The maintenance fees vary in terms of what they include (heat, hot water, etc.). Condos are more like buying a home--it is not like having a share in the complex. Condos also charge monthly charges for maintenance fees and upkeep--anywhere from $200-300 for the ones we were looking for.
My lawyer explained it to me like this: first you would want to get a house if you can afford it. If you can't afford a house, try for a condo. If you can't afford a condo, getting a co-op is still better than renting in that you will make some $ back when you sell.
Some co-ops are risky if the board decides to keep maintenance fees lower and not invest in upkeep, new roof, etc. It could lower the resale value in units in the whole complex. We were looking at a co-op in Smithtown, but didn't wind up getting the apt. we wanted so we backed out.
Danielle&Scott
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Re: Co-Op vs. Condos vs. Home?
My parents just bought a condo in oceanside. The entire thing is brand new inside, plus it has new windows. They got a really good deal too. If I was you, I would try to avoid a Co Op. From what I hear, it is a nightmare. You have to ask permission to do anything to your co op. If you own a condo, you can do what ever...because the condo is yours.
hotelcalie
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Re: Co-Op vs. Condos vs. Home?
We have a co-op in Bayside. We have had no problems and we do not need permission for changes inside our place. Our board has been fine and we have had no problems. In our area Condos start at $350K so that was not in our budget. Our co-op was much less and now we can save almost $2K a month for our house fund! Good Luck!
I used to live in Park City in Rego Park...Its a great and very convenient area
ChristineC68
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Re: Co-Op vs. Condos vs. Home?
Danielle&Scott - Co-ops are not a nightmare. It's not the same as a condo or house but not a nightmare.
We are in a sublet co-op & my mother is in a co-op and the board has been no problem what so ever.
We have painted and did minor renovations with no problems.
The board does ask to be notified if we were going to say take down a wall (to be sure it's not weight bearing) and we need to comply with insurance requirements (which I am sure would apply to condos as well) and we have to do things with in regular hours (that's just being neighborly) but they are not unreasonable.
But nov04LIbride has it right: co-ops are owning shares in a corp. condos are owning your living space houses are houses
The maintenance fees of co-ops includes mortgage interest & real estate tax for the building which is tax deductible. (this may apply to condos as well, I really don't know).
suezboss
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Re: Co-Op vs. Condos vs. Home?
THANKS everyone!
DjPiLL
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Re: Co-Op vs. Condos vs. Home?
Posted by nov04LIbride
Co-op means that when buying you will have shares in the entire complex. It is governed by a board, who then decides how much $ will be allocated for upkeep, etc. Generally co-op prices are lower, but maintenance fees for ones we saw ranged from $650-800 a month, in addition to mortgage, etc.
Is that a 2br co-op? I am paying $546 maintenance for my 2br co-op in Bayside. Stay away from co-ops that charge high maintenance. They will be more difficult to sell when that time comes.
But then again... I am in an older building so the taxes are cheaper which keeps the maintenance down. The two newer buildings by me have maintenance in the $750-800 range. I could never pay that much for maintenance unless its for a 3br.
