Condo vs Co-op HELP!

We are in the process of buying a co-op but are considering walking away for various reasons.

Do condos have as many rules and regulations as co-op?

The co-op association required that we leave a 10% down payment...do condo associations require the same?

Will we have to be approved by a board if we buy a condo, like we did for the co-op?

Any condo info you can give will be greatly appreciated!TIA.

Re: Condo vs Co-op HELP!

I am sorry i cant help you but, you may want to post this on the home board..you will have good luck over there.

Re: Condo vs Co-op HELP!

Posted by Jonsgirl04

I am sorry i cant help you but, you may want to post this on the home board..you will have good luck over there.

Re: Condo vs Co-op HELP!

Depends on the condo but generally co-op DO have more rules and regulations. One thing I will say is that these rules are helpful as an owner (though they are a pain at time like when buying and selling lol). They protect the co-op association's finances in various ways. Also condos are hard to find in many areas of NY. HTH

Re: Condo vs Co-op HELP!

We chose condo over co-op 2 1/2 yrs ago. I hear there are less rules, but I still feel like there are too many rules!

But what really made us go condo is the whole re-sale factor. all we kept hearing is how hard a resale is, how the we would never make any money on the co-op (not that you make much on a condo, but there are better chances). The only place I think those thoughts go out the window are in NYC!

Edit: And no board approval for the condo. You got the money to buy, then go for it. Same as down payment - that all goes through your mortgage broker, no dealing with the condo board.

Message edited 4/12/2011 1:04:33 PM.

Re: Condo vs Co-op HELP!

Posted by Lisagail55

We chose condo over co-op 2 1/2 yrs ago. I hear there are less rules, but I still feel like there are too many rules!

But what really made us go condo is the whole re-sale factor. all we kept hearing is how hard a resale is, how the we would never make any money on the co-op (not that you make much on a condo, but there are better chances). The only place I think those thoughts go out the window are in NYC!

Edit: And no board approval for the condo. You got the money to buy, then go for it. Same as down payment - that all goes through your mortgage broker, no dealing with the condo board.

Re: Condo vs Co-op HELP!

Posted by buttercup

Posted by Lisagail55

We chose condo over co-op 2 1/2 yrs ago. I hear there are less rules, but I still feel like there are too many rules!

But what really made us go condo is the whole re-sale factor. all we kept hearing is how hard a resale is, how the we would never make any money on the co-op (not that you make much on a condo, but there are better chances). The only place I think those thoughts go out the window are in NYC!

Edit: And no board approval for the condo. You got the money to buy, then go for it. Same as down payment - that all goes through your mortgage broker, no dealing with the condo board.

ITA the resale factor is a big thing. Its easier to sell a condo than a coop.

I answered your post on the Home board.

Re: Condo vs Co-op HELP!

Posted by buttercup

Posted by Lisagail55

We chose condo over co-op 2 1/2 yrs ago. I hear there are less rules, but I still feel like there are too many rules!

But what really made us go condo is the whole re-sale factor. all we kept hearing is how hard a resale is, how the we would never make any money on the co-op (not that you make much on a condo, but there are better chances). The only place I think those thoughts go out the window are in NYC!

Edit: And no board approval for the condo. You got the money to buy, then go for it. Same as down payment - that all goes through your mortgage broker, no dealing with the condo board.

ITA the resale factor is a big thing. Its easier to sell a condo than a coop.

I answered your post on the Home board.

Re: Condo vs Co-op HELP!

Re: Condo vs Co-op HELP!

Re: Condo vs Co-op HELP!

Thanks everyone! The kicker is that we already payed ALL the application fees for the co-op and got our approval from the board...the reasons we might walk away have to do with continual hold-ups from the sellers bank and attorney (The latest being that the sellers bank LOST THE SHARE CERTIFICATE (esentially like the deed) and is holding up our closing yet again), and our mortgage rate is about to expire. We figure is we have to start the process all over again, maybe we will start it with a different piece of property.

Re: Condo vs Co-op HELP!

Co-ops do have more rules and restrictions, mainly because you own shares in the corporation that owns/manages the co-op, you don't own the unit itelf. Whereas with a condo, you do own your interior unit and can really make any changes you like to the inside. In a co-op, you need approval to do things like take down a wall, even add a washer/dryer!

Many co-ops on LI actually require 20% down.

Because a condo is considered a "better" form of ownership (given that you actually own your unit), condos are usually more expensive than co-ops in the same area. Also, with a co-op, your monthly maintenance typically covers a pro-rated share of property taxes, as well as things like heat, water, snow removal, exterior maintenance. With a condo, you pay property taxes AND common charges, so that adds up.

As far as resale value, in this area, I think it is harder to sell a co-op OR a condo as opposed to a single family home - mainly, because your pool of buyers is smaller (usually first-time home buyers or downsizers).

Re: Condo vs Co-op HELP!

Re: Condo vs Co-op HELP!

Re: Condo vs Co-op HELP!

We used to live in a co-op. I will tell you that there are a few very important things:
1. what is the owner to rent ratio of the co-ops? you really want more owners then renters.
2. what percentage of owners make up the board for the co-op? Preferably, you would like a very strong owner board, they look out for the owners interests more than the management group
3. What is the percentage of management owned co-ops?

We lived in a majority owned owner co-op, the management company owned a small percentage of the apartments, so the owner-dominated board was very strong, which worked out for the owners favor. The management company likes to carry debt (mortage, etc) - in the building we lived in - the owners voted to pay off the mortage on the building (which in turn lessens your maintenence tremendously). They also voted to start a fund for maintenance, landscaping, etc.

If you go with the co-op, get involved in the board, go to the meetings and make sure you know what's going on, at the end of the day, it protects your investment.

Good luck with whichever you choose!

Message edited 4/12/2011 3:21:15 PM.

Re: Condo vs Co-op HELP!

OMG my board was slow and rude at times too (esp with paper work oy!). They are all like that! BUT I must say when I had an issue in the building , they jumped right on it!

Re: Condo vs Co-op HELP!

I own a condo. I decided against a co-op for several reasons.

1. biggest reason was re-sale value. Selling a condo is much easier than selling a co-op.

2. Board approval. For some reason, the approval process for buying a condo was much easier/shorter than that for a co-op.

3. Ability to do anything I want with my condo. A co-op tends to have more restrictions on things yoiu can do inside the apartment. For ex: Paint. I can actually knock down a wall, pain my entire room black, install extra dividers in my bedroom, etc. I could not do these things with a co-op because technically you are the owners of SHARES in a co-op. In a condo, you actually own the PROPERTY itself.

4. My aunt bought in a co-op and hates it. The restrictions are stifling. She was told she could have a small dog. Now the Board voted against pets so she can not own a bird, dog or cat.

Also, if she wants to move elsewhere, she can not sublet her apartment or rent it out. My condo board actually allows owners to rent out after living in the apartment for a least a year. This was a major deal breaker to me because I was single when I moved in. After a a year I met my husband and we got married, which required me to rent out my condo because I could not afford to short-sell it (property tanked in 2008 along with every other apartment in my area).

There are exceptions of course. But for the most part, the above differences were enough to push me toward a Condo instead of a Co-op. The sucky part is that Condos tend to be more expensive, and in NYC particularly, not that easy to locate (My condo is in Lindenwood/Howard Beach where the majority of properties are homes and co-ops).

Re: Condo vs Co-op HELP!

Re: Condo vs Co-op HELP!

I can only speak from my experience, but we chose a condo over a co-op about 4 yrs ago. There wasnt a set down payment % like there was for a co-op. We met the board but that was it....it seems like they just wanted to get to know us.

I like that we don't need permission to do any work in our place, we knocked down walls, did floors, painted etc.

We are in the process of selling our condo and its been relatively easy, our buyers are getting an FHA loan and theres been no problem. So i think condo is a better decision IMO

good luck!

Re: Condo vs Co-op HELP!

We currently own a co-op and chose it over the condo two years ago when we bought it because- 1. we were very young and couldn't really afford the cost of a condo and 2. we knew the amount we got our co-op for we could sell it for so we would at least break even, in a few years when we're ready to leave we may even rent it instead. We know we probably wont get more than what we paid but that's ok. It is our first home and we knew that if we wanted to own v. rent that's what we were up against.

As far the rules, nothing has ever affected us or our way of life. No one has ever bothered us about anything ever. We both love where we live and we're happy with our decision. We had to be "approved" by the board too, which turned out to just be a meeting where they gave us various keys and association guide books. There was no actual approval. We also did not have to leave any amount of money down with the association, just the reg. down payment like you would leave when buying any house.

Re: Condo vs Co-op HELP!

Re: Condo vs Co-op HELP!

whether you buy a coop or a condo one advice I will give you is this: check/find our who your neighbors are above and below you. Even ring the bell and check the floors , see if they have adequate carpeting upstairs.
I could be wrong but I don't think condos have 80% carpeting rule like co-ops do.
And yes condos do have less rules (like you can have a dog, in some coops you can't)but condos are pain in the neck too. Also check and make sure that the coop building is financially stable and strong.
If it was me and money wasn't an issue I would DEF go with a condo rather than a coop, but even better I would wait, save and buy a house

Message edited 4/13/2011 10:58:21 AM.

Re: Condo vs Co-op HELP!

When worrying about resale value, I think it also matters WHERE you're looking to buy. In my neighborhood, its mostly coops and they sell relatively well, especially in my complex. That's just cuz the neighborhood's desirable and there's no condo stock here.

Re: Condo vs Co-op HELP!

Message edited 4/13/2011 10:57:28 AM.