Real Estate News

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