What is a condo?
A condominium is a piece of real estate in a multi-unit building which is individually owned and shares use of and access to common areas such as hallways, fitness centers, elevators, lobby, etc. Each owner is responsible for the upkeep of the common areas by paying a monthly condo fee.
What is a co-op (cooperatives)?
A co-op is an organization which a group of individuals owns interest in the multi-unit building. Each owner owns shares of stock in the building.
What are the differences?
1. When you purchase co-op the shares permit you to "rent" the apartment, but when you buy a condo you own the property.
2. Some co-ops do not allow for financing and require the purchaser to pay cash.
3. Though the assessments in many co-op buildings seem higher than those in comparable-sized condos, they may not be since they include real estate taxes.
4. A co-op has a more extensive application process because you also have to be approved by the co-op board in order to purchase a unit. No matter how unfair it seems a co-op board may reject you for any reason other than your race, sex, religion or a disability.
5. Co-ops usually have a lower salesprice to encourage homebuyers to purchase.
What are the similarities?
1. A co-op and condo share the same tax advantages.
Let me know what you think.
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