Real Estate News
Buy Smart. 7 Tips for Purchasing a Luxury Apartment in New York City
Purchasing a multi-million dollar luxury Apartment in New York City is no small undertaking. If you are lucky enough to have the cash to buy the Apartment of your dreams,
Buying A Hamptons House Investment? What Town is Right for You?
You've hit the jackpot and are ready to buy one of the Hamptons luxury homes for sale on the market! But you have a big decision to make. There are
North 8th Street. A Gem Block in Williamsburg
As a designated Streeteasy and Zillow expert for 49 North 8th Street, this particular block offers serenity and charm. While some streets in North Williamsburg are busier than others, North
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:
- If money is no object, a Condo is a better investment
- If you are on a relative budget and prefer more space for your money, a Coop is the way to go
- Condops are excellent for many buyers, but inventory is limited
