Hi there , I'm looking to buy an apartment in Queens, NY. Majority of the places I like are coops. I've been getting a strong advise not to buy a coop, but I'd like to know if there is a difference between coop and condo. I think condos in Queens are seriously overpriced and cost as much as houses. Why would there be such a difference in prices? Why the demand on condos is so much higher? Is there any legal restrictions in buying and selling coop? What is a difference in holding a title to condo versus owning a coop apartment?
2006-06-26 07:26:49 · 3 answers · asked by dmitry k 1 in Business & Finance ➔ Renting & Real Estate
In a condo, you own the physical unit itself, and pay maintenance for common areas; with a coop, you own shares in a corporation and allow yourself to "rent" your unit. Your maintenance is much higher in a coop than a condo. In a condo, you can vote on issues; with a coop, you vote for a representative for the shareholders, there is also the agent's rep, and usually the sponsors' rep on the board. Sometimes when you sell a coop, there's a flip tax that has to be paid back to the coop board. We bought a coop on Long Island in 1990 - big mistake - the maintenance was high when we bought - $800 (you pay the underlying sponsor's mtg.; taxes; garbage; water; super's salary; managing agent's fee, etc. thru maintenance in a coop), and eventually got to $1,200 per mo. due to balloon payments on the underlying mtg. When we wanted to sell, we were in a jam - you can lower the price and take whatever hit you want, but you can't change the monthly maintenance - it took us 2 years to sell (I had a 2 bedroom unit and had three children there - it was rough) - we took a $20,000 loss but it was worth getting outta there!
2006-06-26 07:45:27 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Condo's you actually own the space you live in. Coops you own a share of the entire building, kind of like stock. What others do to their unit has more of an affect on you in a coop. at least this is what I understand from when I was shopping for a place.
2006-06-26 07:33:36 · answer #2 · answered by wolvesfan1590 2 · 1⤊ 0⤋
according to my real estate textbook, individual coop units can't be mortgaged without making other owners liable. Condos on the other hand can be individually mortgaged w/o putting other owners at risk. This explains the price difference that you are seeing.
2006-06-26 07:46:22 · answer #3 · answered by Homer J. Simpson 6 · 1⤊ 0⤋