Co-op VS. Condo

Hi Everyone
FH and I have started to look at condos and co-ops and also houses
We are looking in Long Beach and Forest HIlls but noticed that the majority of those buildings are co-op.

Does anyone live in a co-op building and like it? Is it a real inconvience having to be approved bo a board, etc???
Does anyone know of any places that are condo in those areas that are for sale??

TIA!!!

Re: Co-op VS. Condo

We rent right now but we too started out looking at Co-Op's and Condos/Townhouses. These were the reason we decided NOT to look into CO-Op's:
-Hard Resale
-board approval
-no pets (usually)
-Certain rules & restrictions
-maintance sometimes is more than a condo with taxes. I see places with maintance well over $900, well if you bought a condo with 3K in taxes, your monthly charge is $250. Even with utilities, it won't come close to $900 per month.

Re: Co-op VS. Condo

I lived in a co-op for 2 years when we first got married and I really enjoyed it.

I liked that there needed to be board
approval because that meant everyone living there was able to afford it (for the most part).

It was waaaay cheaper than any condos we saw, including the maintenance.

And I found it was easier to sell because we were able to put it on the market for a lot less than most condos and houses.

Both have their good and bad points. I've never lived in a condo, so I can't say much about them.

Re: Co-op VS. Condo

Donald Trump says NEVER buy a co-op only a condo

and from just renting in a co-op building for the last month- I see why

they can also be harder to get loans for- the building also has to be approved

Re: Co-op VS. Condo

Re: Co-op VS. Condo

My accountant advised me against buying a co-op when I was looking to purchase my first place. But, on just one income, that was all I could afford at the time. So, I bought in a very nice development with pretty strict rules and I enjoyed living there very much.

In the 2.5 years that I lived there the board took care of any concerns I had and I don't know if I would have had the same resource in a condo. Also, I sold it for twice what I paid, so it was a wise purchase for me.

I actually felt that because the owners were invested in the property as a group, that we worked together to improve the development's value.

Re: Co-op VS. Condo

We've lived in a co-op for 4 years and we loved/hated it for many reasons.

It was a major PITA to get into a co-op...it takes months. The super, who lives here, is annoying and was rude to us. We have to ask the board for everything...and get inconvienced when someone else has to do work. We get letters about having to shut the water off so someone else can fix their co-op. The maintenance is pretty high and we get additional charges for assessments that seem to never get done.
However, we bought the co-op cheap and we're selling it for a really GREAT price. We also sold it in a month with a realtor...so we didn't have any problems there. It was all we could afford when we first started out. I guess it was worth it because if we rented, we wouldn't have any money for our down payment on our house.

Re: Co-op VS. Condo

If you have a co-op, you do not actually own any propery, you own shares in the co-op company. In a condo you actually own the apartment. Co-op fees will usually be much higher than condos because your fees include the underlying mortgage of the building and also taxes for the building. If for some reason the underlying mortgage is not paid and the "company" goes under, you will lose your home. This would not happen in a condo.

A co-op board doesn't have to give you any reason for not approving you. They can say no and never tell you the reason they did.

Co-ops will also require a lot of money down.

Personally, I would never live in a co-op, I think a condo is much better investment.

Re: Co-op VS. Condo

In the areas that you are looking, it will probably be much easier to find a co-op than a condo. In the city there are many more co-ops b/c they can be more selective about who they let buy than condos.

I lived in one and didn't mind it at all. I had a pretty laid back board, as long as you could afford it, they approved you. And whenever we had a problem, there was someone there to fix it.

We also close to doubled the selling price in less than 3 years...so it was a great investment.

Message edited 11/21/2006 10:45:48 AM.

Re: Co-op VS. Condo

Hi Ladies,
Thank you sooo much for all of the responses!!
All of this information was so helpful!!!
FH and I were thinking about a condo rather than a co-op purely for the approval and board and them putting limitations on what you can or cannot do
If we cant find a good condo we will star tlooking at houses in that area as well

we were also thinking the bayside area but we noticed on line there were many co-ops

if anyone sees any condos in that area def let me know
Thanks so much!!!!!

Re: Co-op VS. Condo

I looked in Long Beach- there are alot of condos- starting around $400K with 6K in taxes- generally speaking

bayside- I think it's just baybridge- super expensive- but way lower taxes then long beach

I don't recommend where I rent now- Towers at Waters Edge- another poster had isssues with them also- looks can be decieving

I also looked in westchester and decided a house is better for us b/c it's the same amount of money

Re: Co-op VS. Condo

DH and I bought a coop in august 2005. We felt that a condo was waaaay too much money . Our coop is pretty lenient, we had to put 10% down, you can have pets, and the board checks to make sure you are under a certain debt to income ratio. You just have to read the rules carefully. We put up a sattelitte dish w/out getting approval. Not only did they pull down the dish unexpectedly, we got fined 1000 dollars we made a big stink so they reduced the fine to 200, but we still had to pay for the guys to reinstall the dish

Re: Co-op VS. Condo

I live in Forest Hills and love it. There are many more co-ops then there are condos. Having owned a co-op I too have faced the pros and cons and would 100% recommend purchasing a condo. However, condos are typically a lot more money, so many (such as myself) end up going the co-op route. The rules of the building really depend on the board. My current building allows pets, only requires 10% down, and allows subletting after a couple of years. Others are much stricter with 20%-35% down requirements, no pets allowed and no subletting etc. You have to shop around and find what fits your needs.

Good Luck!

Re: Co-op VS. Condo

We live in a co-op, and I have enjoyed living there. While it's true that you don't own the apartment outright, it can be a great investment for a first-time buyer since they do tend to cost less than condos.

Boards vary--ours is fairly easy, as long as your financial information is good. If you have financial issues, you may have trouble getting a place, but they aren't picky about who you are, what you do, all the stuff people imagine when thinking of co-op boards. We've had good response to things that need to be fixed that are not our responsibility.

There are plusses and minuses to both. Also, as you noted some areas are loaded with co-ops. If you are looking in Bayside, that's definitely true there. We have friends who live in Bayside, and we live in Great Neck, mostly co-ops there too. They are both great areas to live in--if you want info about the towns, FM me.

Good luck!

Re: Co-op VS. Condo

I don't know much about Forest Hills but I live in a co-op in NYC. I actually grew up in the apt. and my mom signed it over to me when she moved out. DH & I did have to go through board approval which wasn't that bad (I think because the board members knew me) although I was only 20 with not a limited credit history they approved me. They did state this was because they knew me and my mom. In general the board approvals here are very strict. Also, make sure of the co-op boards policies. Ours has a no dog rule and DH decided to buy me a dog 5 years ago for my birthday. The board ended up suing us and we had to get a lawyer and deal with a lawsuit for over a year although at the end we were allowed to keep the dog. I think condos are more flexible with rules such as these. Good luck!

Re: Co-op VS. Condo

Message edited 11/22/2006 10:41:34 AM.