New York City real estate – Pros & Cons – Condo vs. Co-op

Condominiums – Pros
Condos are generally less expensive than Townhouse in Manhattan
• Most Condo often including amenities such as pool, gym and rooftop or terrace
• Good to be a vacation home
• Easy approval
• Flexibility in financing
• Lower maintenance fee
• Freedom

Condominiums – Cons
• High price and Legal responsibility
• Noise from neighbors
Homeowner association fee, and building reserve fund
• Building policy and CC&R restrictions
• Share the common area
• The common areas and facilities of the condo complex are shared by each of the units’ owners

Cooperation – Pros
• Control your own living space
• As a shareholder, you are entitled to deduct your share of the real estate taxes and mortgage interest paid by the cooperative on tax years. Check out Tax Deductions for more info
• Most the buildings are co-op in Manhattan, and you have wide choice
Co-ops cost 20% to 30% less than the identical condos
Closing costs of approximately 1% of the contract price which is far less than condos
• A lot of new co-ops have a amnesties, pool, gym or Terrace

Cooperation – Cons
• Purchase the co-op is stringent co-op board
• It may restrictions on the sublease, allowing guarantor, co-purchase, gift money from parents, pied-a-terre
• Usually require a minimum down payment of 25%
• Most Boards inspect a prospective buyer’s liquid assets, income, debt, work history, etc.
• Often the monthly maintenance of amount exceed than condo’s common charge plus real estate tax
• When the owner of the unit sells their apartment, the buyer has to approval by the board through the application process.
• There is a flip tax when you sell the unit to benefit the building’s reserve fund
• Usually the unit is not allowed to use for business purpose
• Renovations may have to approval by the board

Manhattan Real Estate Market is very unique. The entire purchase process is different than anywhere else in the world. If you are interesting to have a FREE consultation, if you have any question about sell real estate in Manhattan, contact me directly Diana Wu at 516-320-0231 (cell) or email me at diana.wu@elliman.com, I work for The Voda Group, the  AWARD-WINNER group from Prudential Douglas Elliman.

To learn more about our custom-designed marketing plans, visit my website at:  http://www.elliman.com/real-estate-agent/diana-wu/4623 to receive a complimentary valuation of your home, or to discuss any real estate related topics, please contact us today.

Other useful topical:
• What You Can Get For Your Money – The Neighborhoods of Manhattan
• 5 Tips for Purchasing Real Estate in Manhattan

• Manhattan Real Estate Glossary – Types of Rooms

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