Condo vs Coop in NYC

Are you thinking about purchasing an Apartment in Manhattan and are unsure of the benefits for a Condo vs Coop in NYC? In fact, there are several key differences that may or not be dealbreakers for your purchase.

For those that do not live in New York City, Manhattan Apartments can be a challenging experience to new home buyers. The rules are different here in the big apple!

Many people may not realize, but a Coop is a essentially a Corporation. When purchasing in a Cooperative building, the buyer is purchasing shares in the building. Depending on the size of the Apartment, floor and other details, the shares will differ from other Apartments in the building. There are buyers that do not want to own shares in a property and this impacts their Condo vs coop NYC purchasing decision. 

On the other end of the spectrum, when buying a Condo Apartment, the purchaser actually buys the real property. The Condominium structure divides a building into a series or Apartment Condos. Each Apartment is sold as real property.

Additional key differences in the Condo vs Coop in NYC debate include the ability to rent within the building as an investment, re-sale value and board approval process. Below we break everything down for you.

Condo Vs Coop in NYC – Key Differences

Condos Pros & Cons

• Ownership of real property
• Limited board approval process
• Unlimited subletting
• Closing costs may be more expensive than a Co-op depending on Apartment financing, flip tax and other items

Coop Pros & Cons

• Ownership of building shares
• Board approval process
• Limited subletting
• Closing costs may be less expensive
• Coops are typically less expensive to purchase than a Condo. In fact, they can be almost 1/3 less in price

In a perfect scenario, a Condo Apartment would be the ideal purchase. It provides the buyer with more flexibility to maneuver with a purchase and ownership. However, buying a Condo requires more capital and might be cost prohibitive for certain buyers. Unfortunately, financial factors can dictate purchasing decisions for many buyers putting a clear stamp on the Condo vs Coop in NYC purchasing decision.

Submitting a Coop board application can be a treacherous process. I have seen buyers be rejected by Coop boards creating all types of problems for prospective purchasers. It is very important to work with a qualified Broker that can submit a thorough and extensive board package.

If you are looking to purchase a Condo or Coop in New York City, please contact us at GarayRealestate.com We will meet you for coffee and discuss every step of the process.