Occasionally I’m asked the
difference between a Condominium and a Co-op. I thought you would
find this information helpful when listing your next Condo or
Co-op.
If you do have any questions, I would love to hear from you.
| Condominiums: Ownership: Buying a condominium means you own the real estate, including an interest in common areas. Fees: Condominiums charge Homeowners Dues. Cost: Condominiums usually cost more to buy than a co-op, but you have more flexibility with your investment, it’s usually easier to sell or lease a condo. Property Taxes: Condos are individually owned, so owners are taxed separately. Tax Deductions: If you own a condo, you can deduct the full amount of mortgage interest and property tax payments. |
| Co-ops Ownership: When you buy into a co-op, you’re buying shares of the corporation that owns it, therefore entitling you to a portion of its building. A co-op board will often have to vote you in as a new owner and approve whomever you sell to, which can be time-consuming. Fees: Co-ops will also charge fees and they are often higher in a co-op. However, co-ops are less likely to charge special assessments for things like capital improvement projects. Either way, maintenance fees should be factored into your monthly expenses. Cost: While co-ops will have higher fees, the initial cost of buying into one is usually cheaper than a condo. However, it is usually harder to sub-lease in a co-op, so it’s best to plan on living there. Property Taxes: Co-ops are considered a single property, with a single property tax assessment that is split among the owners and usually included in the maintenance fee. Property taxes are typically lower on co-ops than on condos. Tax Deductions: Co-op owners can only deduct their share of property taxes and interest on the underlying mortgage. |