Co-op Vs. Condo – What’s the Difference?
Rebloged from Rand Site (by permission)

Co-ops and Condos are different. A Co-op is a corporation; you actually buy shares in the corporation. The monthly maintenance includes the property taxes and mortgage interest if the building has taken out a mortgage for improvements. These costs are deductible on your personal income taxes – on the listing it will tell you how much is tax deductible, usually about 50%. Co-ops have a Board of Directors and require an application with a fee and board approval for all perspective buyers. They also usually have a minimum down payment that varies from 10% to 35% depending on the building and not all Co-ops allow pets.

With a condo you actually own the unit from the outside wall in and in addition to the common charges you are also responsible for paying the property taxes as well. The taxes will be posted on the listing. Condos also have a board but there is not usually board approval or a minimum down payment requirement. Condos also usually allow all pets. There are not as many condo complexes as there are co-op complexes so the old supply and demand theory – condos are more expensive than co-ops.

The maintenance and common charges both include the maintenance of the building, heat and hot water (unless the heat is electric). Sometimes other utilities, like electric are included but then there is a monthly fee for items such as air conditioners and dishwashers. Some buildings also have temporary assessments for things such as oil costs or improvements. These charges are for a specific period of time.

Some of the Differences

Condominium

Deed ownership to unit and undivided interest in common elements.

Unit owner may finance and refinance his unit with mortgage.

Condominium cannot mortgage common elements.

Condominium Board of Managers has right of first refusal of match offer to purchase or lease unit. (Most never exercise it)

Failure of unit owner to pay common charges increases costs to other unit owners for operating expenses – no risk of foreclosure to other unit owners.

Condominium may foreclose on individual unit for failure to pay common charges.

Units separately assessed for real estate taxes – each unit owner pays his own real estate taxes and mortgage.

Each unit owner deducts real estate taxes and mortgage interest paid directly by him.

On new condos, buyer may be locked into specific bank or two. On resales, most will make a loan. Rates are comparable to a home.
Cooperative Apartment

Ownership of stock or corporation owning building with right to a lease to a designated unit.

Cooperator may finance and refinance his stock ownership and lease with loan secured by pledge of stock and lease as collateral. Called personal loan.

Failure of cooperator to pay maintenance (rent) increases costs to other unit owners for operating expenses and debt service on underlying mortgage-risk of foreclosure on entire building.

Apartment corporation foreclose on cooperator’s apartment for failure to pay maintenance.

Entire building assessed as a whole – cooperator’s maintenance used to pay portion of real estate taxes and underlying mortgage.

Each cooperator deducts his proportionate share of real estate taxes and interest on underlying mortgage paid as part of his maintenance – also, deducts interest on individual cooperative apartment loan paid directly by him.

Interest rates and sometimes points are higher because it’s a personal loan.

THIS UNIT IS SOLD AND CLOSED.

CLICK ON THE GRAPHIC BELOW  OF THE NANUET CONDO

Gorgeous Eastern Sky View. CLARKSTOWN schools. Coach Bus to NYCity Enters complex. Well cared for, recently painted. Truly move-in ready. Neutral Colors. Kitchen with center island. As Big as a home and much sought after Fordham Unit. Walk to all kinds of shopping and restaurants. Master Bath with whirlpool bath and shower. Walk-in closets. Ceiling Fans. Bright and sunny home. Two car oversized garage. Lots of extra parking just steps away. Easy access to pool. PANORAMIC views.

THIS PROPERTY ON KINGS COURT LOCATED IN VISTA of The Hamlets is now SOLD, but this will
give you an idea of what a one bedroom, one bath unit in Vista looks like. This one was a beauty.

$273,999:  Updates and Renovations:*   Freshly Painted
*   New Faucets* 
*   New stainless steel appliances
*   New medicine chest in bathroom
*   New blinds/roman shades throughout the condo
*   Shelves put up in garage, office, laundry room
*   Finished office/den
*   Heat and air in office/den
*   Cable hookup in office/den
*   Hot water heater 1 year old
*   New light fixture in interior hallway
*   A/C compressor 2 years old
*   Carpets freshly steamed cleaned
*   Entire unit freshly painted
*   Abundant storage in unit, closets/garage/basement/crawl space
*   Walk-in closet
*   Hallway Closet with interior light
*   New deck
*   New front porch and steps
.

 Tour #2 

 

 

The Hamlets - All Properties Listed For Sale in 2009

The Hamlets - All Properties SOLD and Closed in 2009

THE HAMLETS OF NANUET MARKET REPORT

2009 Market Update

]]> http://www.rocklandcountyrealestate.com/uncategorized/the-hamlets-of-nanuet-market-report/feed/ 0 http://www.rocklandcountyrealestate.com/uncategorized/rockland-condo-townhouse-and-co-op-real-estate-market-reports/ http://www.rocklandcountyrealestate.com/uncategorized/rockland-condo-townhouse-and-co-op-real-estate-market-reports/#comments Mon, 12 Jan 2009 14:30:16 +0000 admin http://rocklandcountyrealestate.com/?p=2662

2009 Reports

All reports are prepared using statistics from The Greater Hudson Valley
Multiple Listing Service. (GHVmls)

SORTED BY Location

SORTED BY Sold Price/then location 

Sorted By Status (active now, under contract, sold & closed)

Economic Outlook & Home Ownership

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