Hi, I want to gather you guys' opinions on this topic. I'm looking for a 1 bedroom in UWS, anything below 96th would be great, but anything closer to the 59th Street/Columbus Circle subway station would be ideal. I worked out some numbers, and I believe I should have a very good chance on passing a co-op board. But should I also consider a condo? Somehow, I got the impression that condos are for... [more]
Hi, I want to gather you guys' opinions on this topic. I'm looking for a 1 bedroom in UWS, anything below 96th would be great, but anything closer to the 59th Street/Columbus Circle subway station would be ideal. I worked out some numbers, and I believe I should have a very good chance on passing a co-op board. But should I also consider a condo?
Somehow, I got the impression that condos are for people who is concern with getting a board approval. Although I do value the financial flexibility and self governance of a condo. I hate to think that the future sale of my investment is subject to someone else' approval. I am just concern with being able to find the right buyer in a timely manner.
So that said, how much is a reasonable amount as a "premium" to pay for condos, in order to enjoy all the "perks"? I mean, given all other factors (ie. location, size..etc.) are relatively comparable?
In today's low interes rate environment, does it make more sense to be paying more upfront for a condo? Even though on paper, it would probably amount to at least $100,000 more. I'm so confused...I wish there is a formula to calculate what is a reasonable premium.
But the truth is, are condos that much more liquid than a co-op?? Is the buyers pool that much bigger?
Many many thanks in advance!
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Response by Truth
over 14 years ago
Posts: 5641
Member since: Dec 2009
We have a few threads discussing this on se, leecube.
There are pros and cons for each.
I am by no means an expert but I recently bought a condo and really did not want to consider a co-op, even though there were many more available in my price range. A condo will be easier to rent out if you decide to move and don't want to sell it. And if you do sell, my understanding is that the co-op board has to approve your potential buyer, another big issue for me. You may agree on a fair price and be ready to sell, but then the co-op board can through reject the offer and you have to find another buyer. If I was pretty confident I would live in the co-op forever, or at least a very long time, then I would say you should consider it.
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Response by RealEstateNY
over 14 years ago
Posts: 772
Member since: Aug 2009
I've lived in both and although it's easier to buy and sell a condo, you'll pay for that privledge with the upfront additional cost. Although the monthly maintenance is generally higher in a co-op, the underlying mortgage in a co-op is tax deductable.
I prefer living in a co-op. You tend to find a larger transient population in a condo. Owners rent at will and may buy an apartment strictly for investment with revolving tenants. Also fewer restrictions and rules particularly regarding pets, we found that people with large and multiple dogs generally end up in condos.
If you intend to remain in the property for more than 5 years, consider a co-op.
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Response by Truth
over 14 years ago
Posts: 5641
Member since: Dec 2009
That's right,RENY.
Although I would look at more than 5-years before resale.
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Response by Truth
over 14 years ago
Posts: 5641
Member since: Dec 2009
5-10 years before resale.
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Response by caonima
over 14 years ago
Posts: 815
Member since: Apr 2010
if you missed the chance to buy before the bubble, buy a coop
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Response by Truth
over 14 years ago
Posts: 5641
Member since: Dec 2009
I just got a call suggesting more than 10 years: 12+ years.
Let's say 15 years.
This ain't your 1990's co-op market.
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Response by NYCmodern
over 14 years ago
Posts: 100
Member since: Dec 2011
In my price range, I could either buy a small 1 bedroom condo or a decent sized 2 bedroom coop. And I don't agree with the above comment that maintenance is higher in coops, since every condo I looked at had much higher maintanance than a comparable coop. I agree that the 'quality of life' factor is much better in a coop building since people aren't doing a 1 year lease, subletting, constantly moving, etc. People do not buy coops as a rental investment and if you are buying your primary residence you will not want to live next to someone who is.
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Response by RealEstateNY
over 14 years ago
Posts: 772
Member since: Aug 2009
"This ain't your 1990's co-op market."
That was the last time I bought. LOL!
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Response by Truth
over 14 years ago
Posts: 5641
Member since: Dec 2009
RENY: lol!
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Response by streetsmart
over 14 years ago
Posts: 883
Member since: Apr 2009
The problem with co-ops is having to deal with the board, and if for some reason they don't like you, good luck in selling your apartment.
Also if you want a refinance and the bank approves your loan, but the co-op says no to the refinance, since for the loan to go through they have to sign the recognition agreement, then there's no refinance.
Nevermind the fact that passing a board means revealing everything about yourself.
We have a few threads discussing this on se, leecube.
There are pros and cons for each.
For easy resale buy a condo. Below 96th st.
Good luck.
http://streeteasy.com/nyc/talk/discussion/24264-price-of-co-ops-vs-condos
ttp://streeteasy.com/nyc/talk/discussion/1322-condo-vs-coop
I am by no means an expert but I recently bought a condo and really did not want to consider a co-op, even though there were many more available in my price range. A condo will be easier to rent out if you decide to move and don't want to sell it. And if you do sell, my understanding is that the co-op board has to approve your potential buyer, another big issue for me. You may agree on a fair price and be ready to sell, but then the co-op board can through reject the offer and you have to find another buyer. If I was pretty confident I would live in the co-op forever, or at least a very long time, then I would say you should consider it.
I've lived in both and although it's easier to buy and sell a condo, you'll pay for that privledge with the upfront additional cost. Although the monthly maintenance is generally higher in a co-op, the underlying mortgage in a co-op is tax deductable.
I prefer living in a co-op. You tend to find a larger transient population in a condo. Owners rent at will and may buy an apartment strictly for investment with revolving tenants. Also fewer restrictions and rules particularly regarding pets, we found that people with large and multiple dogs generally end up in condos.
If you intend to remain in the property for more than 5 years, consider a co-op.
That's right,RENY.
Although I would look at more than 5-years before resale.
5-10 years before resale.
if you missed the chance to buy before the bubble, buy a coop
I just got a call suggesting more than 10 years: 12+ years.
Let's say 15 years.
This ain't your 1990's co-op market.
In my price range, I could either buy a small 1 bedroom condo or a decent sized 2 bedroom coop. And I don't agree with the above comment that maintenance is higher in coops, since every condo I looked at had much higher maintanance than a comparable coop. I agree that the 'quality of life' factor is much better in a coop building since people aren't doing a 1 year lease, subletting, constantly moving, etc. People do not buy coops as a rental investment and if you are buying your primary residence you will not want to live next to someone who is.
"This ain't your 1990's co-op market."
That was the last time I bought. LOL!
RENY: lol!
The problem with co-ops is having to deal with the board, and if for some reason they don't like you, good luck in selling your apartment.
Also if you want a refinance and the bank approves your loan, but the co-op says no to the refinance, since for the loan to go through they have to sign the recognition agreement, then there's no refinance.
Nevermind the fact that passing a board means revealing everything about yourself.
Good luck to all who buy into co-ops.
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