Is it good to buy a co-op condo?

The tax advantages of owning a condo or a co-op are about the same. Co-op owners also can deduct their share of the mortgage interest paid on the building’s underlying mortgage and their share of property taxes the co-op pays. Property taxes often are lower for co-ops than condos.

How much is a co-op in NYC?

Overall when purchasing a co-op in NYC, buyers should expect to pay about one to two percent of the purchase price, or two to three if the apartment costs more than $1 million. As for condos, expect two to four percent as a safe range, the lower end for properties under a million dollars with small mortgages.

What is a co-op apartment NYC?

What is a co-op in New York City? Co-op is short for “cooperative.” When you buy a co-op apartment, you are actually buying shares in a corporation that owns the building. Each owner is granted the right to occupy a specific apartment. This is called the “proprietary lease” for that apartment.

Are co-ops hard to sell?

In terms of overall price, a co-op is often cheaper than buying a condo, according to the National Association of Housing Cooperatives (NAHC). That’s because if a borrower defaults on a condo loan, the lender has real property to deal with rather than shares, which can be harder to sell.

What is a sponsor sale in a coop?

When a co-op apartment is described as a sponsor unit, it means it is being sold by the original developer or owner of the entire building. For starters: When you buy a sponsor co-op you won’t be dealing with a resale owner or the co-op board and the apartment will typically have been a rental.

Why are co-ops bad?

Co-op fees tend to be higher than condo fees because co-ops roll all the monthly expenses into one bill, including gas, water and property tax. Condo owners pay their utilities and tax bills on their own, so those costs are not reflected in the monthly fees.