THE CO-OP VS CONDO BREAKDOWN
If you're thinking about purchasing in NYC, new to how real estate is classified in this city, or just curious, below is an abridged version of the differences between a Co-Op versus a Condo. Residential Real Estate has a different evaluation, and needless to say, is ALWAYS in demand. Let's face it, New Yorkers will always need a place to live.
From the outside of a building you may not be able to tell if it's a condo or a co-op. Hollywood and many popular Manhattan setting movies will convey the quintessential pre-war building, a protagonist's first pad in the big apple, where old world meets new. These pre-war buildings are usually co-ops, having been built with generous features like sunken-in living rooms, parquet floors, high ceilings, fireplaces, and even dining rooms ( not many new yorkers have fine china or needs for a formal dining area anymore). Many newer buildings are proclaimed condos, having the latest interior design trends displayed, architectural wow factors, and lots of amenities. Ultimately you'll know if a building, neighborhood, or space is for you by seeing multiple options, knowing your financial stance, and teaming up with an agent such as myself to guide you in the market.
Remember working with a Buyer's Agent is always free, and my fees are paid for by the seller at closing. If you have any questions on the below points, don't hesitate to ask.
Co-Op
Pre-approval letter.
Buyer will still have to pass board approval.
Formal Board Interview – Board of Directors
Board must approve an Applicant
Debt to Income Ratio: 20-30%
1 year of Liquid Assets - 1 (maybe Brooklyn)
(2 Years in Manhattan)
20% minimum down payment
Board of Directors
Common Charges / RE Tax
Coop owners pay monthly maintenance to the building corporation for items such as the expenses of maintaining and operating the building property, property taxes and the underlying mortgage on the building (if any).
Must be owner occupied, no pied-a-tiers, rarely able to sublet
Cheaper to Close
My favorite Co-Op in NYC: Alwyn Court*
Location: 180 W 58th Street at Seventh Avenue
Year completed: 1909
Architect: Harde & Short
Floors: 12
Style: French Renaissance
New York City Landmark: 1966
National Register of Historic Places: 1979
*https://www.newyorkitecture.com/alwyn-court-apartments/
Condo
Pre-approval letter,
Bank might approve the building’s financial standing.
First Right of Refusal needs to be waved – Board of Managers
Board Approval Not Always Needed
Debt to Income Ratio: 40-45%
6mo-12mo of Liquid Assets
(varies with new developments)
10% minimum down payment
Members of the Board
Maintenance Charges/ RE Tax
When you buy a condo, you buy an individual parcel of real property, like a house or townhouse. You’ll have your name on the title and deed.
Can be rented, sublet, or bought as a second residence/ pied a tier, purchased in the form of an LLC or Corporation,
More Expensive to Close
(Mortgage Tax, Title Insurance, Title Search, etc.)
My favorite Condo in NYC: 91 Leonard*
LXLMS
Location:91 Leonard Street, New York, NY, 10013
Year completed: 2018
Architect: Skidmore Owings & Merrill and Hill West
Floors: 19
Units: 111
Style: Modern Industrial
Brand-new construction in a legendary landmark Tribeca neighborhood
www.91Leonard.com
*https://streeteasy.com/building/91-leonard
