Real Estate News

Property Management Companies NYC

Property Management Companies in NYC The difference in your investment becoming a smashing success versus an utter failure may come down to choosing one of the elite  property management Companies

Advice for the Savvy Real Estate Investor

Advice for the Savvy Real Estate Investor Economic down cycles offer incredible opportunities for savvy real estate investors. Wealth is created when buying low, not acquiring at the peak of

Are you looking to invest in New York City Real Estate? Planning to purchase a new Apartment?

In New York City there are three types of building structures;  Condos, Coops and Condops. Each building structure offers advantages and disadvantages. Lets have a look at all three:

Condos

  • Advantages
    • Buyer owns the real property
    • Flexible sublet policy
    • Can rent as investment
    • Pied a Terres allowed
    • 90% financing
    • Easier board approval process
    • Less reserves required for board approval process
    • Greater pool of buyers when reselling due to limited board approval process
  • Cons
    • Higher closing cost
    • New construction may include buyer paying transfer tax
    • Price of a Condo is typically higher than other building structures

Coops

  • Advantages
    • Less expensive than Condos
    • More value for your money
    • Maintenance tax deductibility
    • Lower closing costs
    • No title search
  • Cons
    • Own shares and not real property
    • Lengthy board application process
    • Stringent board review in some cases
    • Minimum reserve requirement after closing
    • Strict income/debt ratio required
    • Strict sublet policy in some cases
    • Certain coops do not allow pied a terres, guarantors or co-purchasers

Condops (This is an underlying Coop) 

  • Advantages
    • Hybrid between Condos and Coops
    • Less expensive than Condos
    • More value for your money
    • Maintenance tax deductibility
    • Lower closing costs
    • No title search
    • Easier board approval process
    • Flexible sublet policy
  • Cons
    • Few Condops in New York City

After looking at all three building structures, my thoughts are as follows:

  1. If money is no object, a Condo is a better investment
  2. If you are on a relative budget and prefer more space for your money, a Coop is the way to go
  3. Condops are excellent for many buyers, but inventory is limited