Condo vs. Co-op
While condos and co-ops have some similarities, they also differ in important ways that give tenants a wide range of choices. The real estate market in New York City is unique from all others in the country in many respects. The fact that apartments for sale in NYC are either condominiums or co-ops is one of the greatest distinctions.
Both condos and co-ops typically have a doorman and a superintendent on duty; some will also have a concierge who will handle any tasks the other two are unable to complete. The facilities can be basic (perhaps only storage space in the basement) or extensive, including a landscaped terrace and a gym.
The ownership of the property is really the only distinction between condos and co-ops. If you reside in a condominium, your particular unit is yours to own. If you reside in a co-op, you are a shareholder in the business that owns the structure. You don't own the apartment if you own a co-op. Instead, you have the legal right to occupy the structure and take part in its management.
Co-ops are more appropriate for temporary residents. Condos might be a better option for people looking for long-term residence. A condo is an investment in real estate, therefore each monthly payment you make will assist you in accumulating wealth over time. Depending on where you live, co-ops might require substantial down payments of 20% to 30%.
How Do Condos Work?
Condos are privately owned units housed in a larger apartment complex. A condominium is actually an inner unit within the building; it does not include any outside or communal areas.
Similar to homeowners associations, condo associations are in charge of managing condominiums. The façade and common parts of the building are maintained and repaired by the condo association. This includes things like landscaping or routine maintenance of the building's common areas.
All condo owners are required to follow the association's regulations governing the building. Owners pay monthly dues to the condo association in exchange for the maintenance that is done. Though it does include monthly fees, buying a condo is typically less expensive than buying a single-family house. However, compared to homeowners, condo owners will have less maintenance to handle themselves.
How Do Co-ops Work?
A corporation that owns and runs co-ops, which are a sort of cooperative housing. In reality, when you buy a co-op, you're actually buying stock in the company rather than actual real estate. You are granted greater room to live in the property the more shares you hold.
Shareholders in co-ops provide a collective vote on decisions that impact the building's occupants and its property. The maintenance payments are gathered by volunteers from the co-op community, who also handle maintenance and repairs. For everyday building needs, the co-op board may also appoint a property manager. The board also decides who may purchase corporate shares and considers requests for the property.