Real Estate Blog

Condo vs Co-Op

In places like New York City ~75% of the Manhattan housing inventory is comprised of co-ops. While co-ops are much less common in Florida a prudent buyer or seller should understand the differences and evaluate real estate decisions with a valid understanding how this could impact the real estate experience.

CondoCo-Op
Owns propertyOwn shares in a corporation that owns the property
OR
Obtains stock + a proprietary lease
OR
Obtains an occupancy agreement
More freedomMore teamwork
More privateMore communal
No board approval to buyRequire approval by the co-op board to buy based on
- ability to pay
- willingness to live the terms of the association
Owner pays property taxShare-holder impact
- real estate taxes are paid through the Co-op
- transfer taxes are not paid by the share-holder
- title insurance is often not available and thus not charged
****purchases and lenders should be as prudent as the title
insurer- no recording tax
- maintenance fees are sometimes tax deductible
Monthly maintenance fees for
- building upkeep
- insurance
Monthly maintenance fees for
- building upkeep
- insurance
- real estate taxes
- mortgage debt of the building

Typical similarities fo Condos and Co-Ops.

+ Equal “say” in how the building is run and maintained.

+ Residents vote on decisions that affect the building.

+ Some resident are elected as board members to cart out the group’s wishes and handle other details.

+ Financing can be limited, not approved by the lender, or not approved by the board.

This article was written by Brian C. Smith- Realtor, EWM Realty International.

For more information or assistance with real estate in South Florida please contact Brian today at 305.318.8200.

#MiamiRealEstate #Co-Ops #SouthBeach

 
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