Real Estate- Educational- Condo vs Co-Op
Condo vs Co-Op
In places like New York City ~75% of the Manhattan housing inventory is comprised of co-ops. While co-ops are much less common in Florida a prudent buyer or seller should understand the differences and evaluate real estate decisions with a valid understanding how this could impact the real estate experience.
| Condo | Co-Op |
| Owns property | Own shares in a corporation that owns the property OR Obtains stock + a proprietary lease OR Obtains an occupancy agreement |
| More freedom | More teamwork |
| More private | More communal |
| No board approval to buy | Require approval by the co-op board to buy based on - ability to pay - willingness to live the terms of the association |
| Owner pays property tax | Share-holder impact - real estate taxes are paid through the Co-op - transfer taxes are not paid by the share-holder - title insurance is often not available and thus not charged ****purchases and lenders should be as prudent as the title |
| insurer | - no recording tax - maintenance fees are sometimes tax deductible |
| Monthly maintenance fees for - building upkeep - insurance | Monthly maintenance fees for - building upkeep - insurance - real estate taxes - mortgage debt of the building |
Typical similarities fo Condos and Co-Ops.
+ Equal “say” in how the building is run and maintained.
+ Residents vote on decisions that affect the building.
+ Some resident are elected as board members to cart out the group’s wishes and handle other details.
+ Financing can be limited, not approved by the lender, or not approved by the board.
This article was written by Brian C. Smith- Realtor, EWM Realty International.
For more information or assistance with real estate in South Florida please contact Brian today at 305.318.8200.
#MiamiRealEstate #Co-Ops #SouthBeach
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