What is a Co-op?

Question

I'm considering moving to NYC, but I'm a little afraid of not being able to find an apartment within my price range. I see alot of references to "co-ops". Not exactly sure what these are. Anyone with mortgage experience in the NYC area out there???

Answer 1

I live in NYC and I own a co-op, basically you pay a certain amount of money (thousands), you pay a carrying charge ( much smaller amount than rent) and you live there, when you move you sell the apartment back to the community (board). please note the apartment must be returned in the exact way recieved or they deduct the fix it money from the inital payment.
you are able to get tax deductible for the apartment (just like a house) but you cannot make a profit. To be honest, i think it is the next best thing to if you cannot afford the $1500 rent that NYC is charging and lets not talk about the cost of a house. Hope this was helpful.

Answer 2

I live in a co-op, although in Canada. The difference between just renting, and a co-op, is that in a co-op, you buy a share, perhaps $1000- $3000, which is refundable when you move, plus usually you are supposed to do about 4 hours work per month at the co-op, like helping with landscaping, or shovelling snow, or attending committes or whatever...hope that helps, and applies to NYC.

Answer 3

A housing cooperative is a legal mechanism for ownership of housing where residents either own shares (share capital co-op) reflecting their equity in the co-operative's real estate, or have membership and occupancy rights in a not-for-profit co-operative (non-share capital co-op), and they underwrite their housing through paying subscriptions or rent.

I rented one when I first moved to DC and did not understand what it was. As a renter it was cool, but if you are trying be one of the owners in the co-op then that is a different story. People that own a unit in the co-op can rent out that unit just like an apartment.

Answer 4

A co-op is kind of like a condo, but the ownership is different. In a condo, you own the space you live in as an individual piece of real-estate, and you have a title for that section of the building. In a co-op, you own a share of stock in a corporation that owns the entire building, rather than a tangible piece of real-estate. There are advantages and disadvantages to each. One advantage of a co-op is that the taxes are cheaper or non-existent.

Answer 5

co-op is essentially a paid internship. not much since you're an intern but something at least. probably not enough for your rent in NYC. most likely will need to find a roomie.

Answer 6

I think it means that the two of you buy or rent the property together. You share the payments and the property equally, where as co-sign would mean that you owned the property but they kinda vouch for you and have to pay if you don't. I guess it would be kinda like a time-share but you'd both be living there at the same time.

Answer 7

you basically own your apartment....but in order for you to get in you need to sit in front of the co-op board which can reject you for any reason.......i don't know what your finances are like but, check with

corcoran.com
and
craigslist.org

Also, the word on the street is you are better off buying a condo, more ownership...less rules......no co-op board......

Answer 8

its like an apartment or a condo, but u can't do anything to it, there are strict rules...watch haouse hunters on HGTV at 10 nyc time to find out what one really is

Answer 9

Co-Op Mean Cooperation. It most likely means there are people who work together.