Tip #4: Pros & Cons of a Co-Op

In our last tip of the day, we described the definition of what is a Co-op? (https://garayrealestate.com/tips-of-the-day/what-is-a-co-op/)

As previously discussed, Co-ops are very prevalent in the Manhattan area. If you are unfamiliar with purchasing in Manhattan or Brooklyn and are purchasing for the first time, there may be a lot of information to learn.

Here is a breakdown of some advantages and disadvantages to purchasing a Co-op:

Co-op Pros

• Less expensive than a Condo
• Lower closing costs
• More space and affordable price/sf compared to Condo units
• Maintenance is tax deductible

Co-op Cons

• Do not own actual title to the property
• Very difficult to sublet
• May not allow Pied A Terre’s
• Can be difficult to sell since the board must approve the purchaser
• Strict board application process
• Must provide a lot of financial documentation

As you can see, there are positives and negatives to purchasing a Co-op unit. The decision is purely subjective and depends on various factors.

To further discuss whether a Co-op unit may be the right fit for you, please reach out to us, garayrealestate@gmail.com