New York holds many options when it comes to where to live. You have the choice of the more popular, co-ops, which make up a majority of New York real estate, or the more modern, condominiums, which have only begun to become popular in the last decade.
There are many differences between the two, that if you are aware of, will help you make your decision on what is better for you.
1. Ownership
Buying a condominium means you have complete ownership of the property, from the actual real estate to the lawn. It is yours and yours alone. However, when it comes to buying a co-op, you only own a share of the property. You have other co-owners, and this can be quite time consuming, as if you ever want to sell the property, you have to consult the board of owners. Also, you have to be voted into the board to be an owner, which also takes much time.
2. Maintenance Fees
While both co-ops and condos have maintenance fees, for things like lawn mowing, and snow shoveling, co-ops tend to have a higher fee. However, with that being said, they do not charge extra for special assessments. Whatever you decide, though, make sure too factor these costs into your decision financially.
3. Cost
Condominiums overall go for a higher rate than co-ops. However, there are advantages to investing in a condo, as they are easier to rent or sell later, down the line. Co-ops tend to have a lower initial cost, so it makes buying in easier.
4. Property Taxes
As owning a condominium is an individual deal, it means you are taxed individually, as you would if you owned a single-family house. Co-ops are usually favored in this matter, as they are taxed as one single property. The tax amount is split among the owners, making it less than if you lived in a condo.
5. Tax Deduction
As I said before, owning a condominium is just like owning a single-family house. So. tax deductions tend to work the same way. Meaning, if you own a condo, you can deduct the full mortgage interest and property tax payment.
On the other hand, co-op owners can only deduct their share of mortgage interest and property tax payment, instead of for the whole property, which lessens the amount.
6. Life Plan
It also depends on what your long-term plans are. If you are young, and planning on moving a lot, or if you are not sure whether New York is the place for you, long-term, it is probably better to look into buying or renting a condominium, as they are easier to sell or lease out in the long run. Co-ops have more rules, as there is a board of owners you must consult before choosing a new owner.
If you are not comfortable in buying, remember renting a condominium is an option. This option, however, is not available when it comes to co-ops.
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