Is Buying a Co-op Worth It in NYC?
Hauseit
2019-03-04
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Calculating Condo & Co-op Square Footage: https://www.hauseit.com/how-measure-square-feet-real-estate-nyc/
The main reason why buying a co-op in NYC is a good idea is because they are generally 10% to 40% less expensive than condos of comparable size and quality. Co-ops are less expensive for two main reasons:
There are significantly more co-ops than condos in NYC. Greater supply equates to lower prices, all else equal.
Co-ops are not generally purchased by investors and foreign buyers due to subletting restrictions which makes them harder to rent. Less demand equates to lower prices, all else equal.
Buying a co-op instead of a condo is also a good idea when it comes to your buyer closing costs. Buyer closing costs for co-ops are less than half of what you’d pay for a comparably priced condo. Expect to pay around 1% to 2% for a co-op compared to something like 4% in closing costs for a condo.
If you’re buying a $1,000,000 apartment, saving 2% on your buyer closing costs can equate to an extra $20,000 in your pocket at closing.
Often times, buying a coop in NYC is the only way working families can afford a larger apartment when it’s time to have kids. Many buyers simply need more space for their budget than what a condo will offer.
Unlike condominium apartment owners, co-operative apartment owners are technically shareholders of a corporation that owns the entire apartment building. Co-op apartment shareholders are given a proprietary lease that lets them reside in the apartment that they purchased.
However, because they don’t technically own the apartment that they dwell in, they are not considered to have real property rights. The cooperative corporation is run by a board of directors that is elected by the shareholder base, similar to what you’d see in a regular business corporation.
Buying a co-op can be a bad idea due to the fact that the board of directors enforces strict rules and regulations that touch every aspect of life within a cooperative building. These rules can hamper your ability to sublet the apartment and impact whether or not you can renovate your apartment before selling.
What’s arguably the worst thing about owning a co-op is that the co-op board can derail your future sale by rejecting your buyer, in some cases multiple times. Furthermore, many co-ops charge sellers an extra closing cost called a flip tax.
Looking to buy or sell a home in New York? Learn how you can save on commission and closing costs at https://www.hauseit.com
Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
#hauseit #hauseitnyc
https://www.hauseit.com
The main reason why buying a co-op in NYC is a good idea is because they are generally 10% to 40% less expensive than condos of comparable size and quality. Co-ops are less expensive for two main reasons:
There are significantly more co-ops than condos in NYC. Greater supply equates to lower prices, all else equal.
Co-ops are not generally purchased by investors and foreign buyers due to subletting restrictions which makes them harder to rent. Less demand equates to lower prices, all else equal.
Buying a co-op instead of a condo is also a good idea when it comes to your buyer closing costs. Buyer closing costs for co-ops are less than half of what you’d pay for a comparably priced condo. Expect to pay around 1% to 2% for a co-op compared to something like 4% in closing costs for a condo.
If you’re buying a $1,000,000 apartment, saving 2% on your buyer closing costs can equate to an extra $20,000 in your pocket at closing.
Often times, buying a coop in NYC is the only way working families can afford a larger apartment when it’s time to have kids. Many buyers simply need more space for their budget than what a condo will offer.
Unlike condominium apartment owners, co-operative apartment owners are technically shareholders of a corporation that owns the entire apartment building. Co-op apartment shareholders are given a proprietary lease that lets them reside in the apartment that they purchased.
However, because they don’t technically own the apartment that they dwell in, they are not considered to have real property rights. The cooperative corporation is run by a board of directors that is elected by the shareholder base, similar to what you’d see in a regular business corporation.
Buying a co-op can be a bad idea due to the fact that the board of directors enforces strict rules and regulations that touch every aspect of life within a cooperative building. These rules can hamper your ability to sublet the apartment and impact whether or not you can renovate your apartment before selling.
What’s arguably the worst thing about owning a co-op is that the co-op board can derail your future sale by rejecting your buyer, in some cases multiple times. Furthermore, many co-ops charge sellers an extra closing cost called a flip tax.
Looking to buy or sell a home in New York? Learn how you can save on commission and closing costs at https://www.hauseit.com
Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
#hauseit #hauseitnyc
https://www.hauseit.com
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