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Choosing between a condo or coop in New York depends on the needs of the buyer. Coop apartments can be less expensive than condos but are tightly controlled by the board. The law offices of David J. Aronstam helps potential homeowners and renters navigate the complex market in the city.
The market in New York City is cooling down. A drop-in population across the state has not dampened the overall market. However, after peaking in 2015, prices across the boroughs continue to decline.
Today, the average price of a condominium in Manhattan is slightly lower than $1 million. The ten to twenty percent drop over the past several years is not slowing down.
However, housing in the city is expensive. With the economy growing and unemployment low, people continue to migrate to and from the area. Supply remains incredibly tight as demand is steady.
Coop housing places control over a building in the hands of a corporation. You purchase shares in the company which grants access to a proprietary lease.
This form of ownership keeps investors and migratory tenants from receiving shares. An elected board creates restrictions and decides what happens when they are violated. Most coop housing limits the number of days an apartment can be sublet. Typically, it is possible to sublet for several days over a two-year period.
Overall, this form of housing is perfect for long-term residents. Prices are forty percent lower on average than for a condo. Some coop apartments take care of utilities and maintenance as well. However, this is not always the case.
However, you do not own the property and are subject to the rules of the corporation. You need to know the requirements for tenancy.
A condominium offers complete ownership and flexibility. The only limitations are those set by the association governing such tasks as garbage collection and maintenance.
The ability to sublet your apartment with only a permit makes this form of housing attractive to investors and short-term residents. With housing prices remaining high and the typical attractiveness of New York City, you are likely to recoup or even gain more than what was paid for your condo.
Your plan for your new home is crucial to making the right decision. Short term residents with fleeting jobs or those looking to set up a rental property should purchase a condominium. Others who plan on staying may benefit from the lower cost of a coop apartment.
Coop housing also comes with a more rigorous approval process. Even after going through in-person interviews with the board and showing the required paper trail, you may be rejected. Most foreign buyers do not have enough proof to be vetted.
The down payment for a coop is normally 20 percent, double that of a condominium. Even if you put down the money for shares, the restrictions placed on ownership may exceed what you can afford.
Meanwhile, the flexibility of a condominium and lower down payment comes at a cost. Real estate is expensive in the city.
Choosing between the two types of housing can be difficult. We help clients obtain the proper documentation and better understand any contract they are about to enter.
Get in touch today to better understand the housing market for Condos and Co ops in New York City.
David J. Aronstam, Esq.
85 Broad Street
New York, New York 10004