6 Key Differences between Condo and Co-op Properties in New York City

Are you in the market for a new property in New York City? If so, you’ve likely realized that the city offers more than just the traditional condominium property type. NYC is a unique market in that the vast majority of available apartments for sale are co-ops, which is not actually a form of real property. Instead, co-op residents actually own shares in the co-operative corporation that owns the apartment building. So if you buy a co-op, you will not receive a traditional deed which is associated with typical real property investments like homes, condos, land, townhouses, etc.
While you may be attracted by the lower prices of co-ops (10-40% less expensive than traditional condos) as well as the lower buyer closing costs (2% less than for condos), these types of properties also come with other significant differences to their condo counterparts. Most immediately, you will discover that co-ops have very rigorous buyer board approval processes. This means that it’s both hard to buy and sell a co-op. Furthermore, co-ops have higher monthly common charges which include property tax paid by the co-op corporation. Co-ops are also very difficult to sublet. Condos have flexible sublet policies which are great for investors and owners looking for flexibility. Finally, co-ops often charge sellers a flip tax of 1-2% in addition to scrutinizing potential buyers through the board application process.
Before beginning your NYC property search, it’s best to spend a few minutes to really understand the difference between condos and co-ops and identify which property type makes the most sense for your personal situation. This infographic powered by Hauseit identifies the 6 key differences between condo and co-op properties in NYC which you should factor in to your decision.
Infographic Source : http://www.hauseit.com/co-op-vs-condo-nyc/