CO-OP Ownership
Interested in owning a CO-OP, but not sure where to start?
When it comes to buying a CO-OP here is what you need to know:
OWNERSHIP
Residents who own the apartment are shareholders of a corporation that owns the entire building
MAINTANENCE
Maintenance charges include operating expenses, amenities (if any available in the building) debt service on underlying mortgage, real estate taxes on the property and some utilities (depending on the building)
FINANCING
CO-OPS require 10-20% down and if in healthy financial standing should have no problem getting approved.
PROPERTY TAXES
Property taxes are usually lower in co-ops as they are split among board members. Tenant-Shareholders are able to deduct their share of the mortgage interest and real estate taxes paid by the corporation.
AFFORDABILITY
Co-ops are usually at lower prices as compared to condos, and are a great primary home if you plan to reside in it
RENTING
CO-OPS require 2-3 year owner occupancy before they can be rented depending on the building and rules and regulations