Co-op vs Condo: Which One Is Better for You?
Need help navigating the difference between coops and condos in New York? In this article we’ll take you through all the considerations step-by-step, so you’ll know exactly whether a co op vs condo is the better choice for you.
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what is the difference between a co op and a condo?
There’s no physical difference between co op and condominium buildings. Rather, co-ops and condos are different in the way the properties are financially structured and owned. If you live in a condominium, that means you own the unit that you live in. And while you still basically own your unit in a co-op, what you technically own is shares of the corporation that owns your unit.
Simplifying the Industry Jargon:
Condo Definition: A condo in New York city is any apartment where individual residents separately own each of their own units.
Co-op Apartment Definition: In an NYC co-op, all residents own shares in the corporation that owns the building.
Is a co-op vs condo easier to buy?
It’s harder to Qualify for a Co-Op
Cooperatives, on the other hand, only approve buyers after a lengthy co-op board approval process. This includes an interview as well as a full analysis of the applicant’s financials. If purchasing a co-op, you will need to put together your board package as well as prepare yourself and anyone you’ll be living with for an interview.
Condos Accept more Applicants
Unlike cooperatives, condo boards only reject applicants when they intend to purchase the unit themselves. This makes condos much easier to purchase.
How long does a co-op vs condo purchase take?
Co-Ops are slow to close
You can expect a timeline of around ninty to 120 days between contract signing and closing the purchase of your co-op.
Condos Close Quickly
Closing on a condo is faster than closing on a co-op, and will take as little as 15 - 30 days.
Are co-ops or condos more worth the money?
Co-ops offer more bang for your buck
Co-operative apartments tend to be substantially more affordable than condominiums since they are harder to get approval for. This decreases the demandfor these units, as many buyers are concerned they will not qualify.
Condos are more expensive
Since condos are easier to purchase, they are in higher demand. This drives up the prices, even on otherwise comparable units.
Would you prefer a new or Vintage building?
Pre-war Buildings are almost always co-ops
If you’re looking for a home with classic New York vibes, you’ll likely end up looking at co-ops. There are minimal options for pre-war condominiums.
If you Prefer modern buildings, look for condos
If you want a new property, you’ll be looking almost exclusively at condominiums. Since 2015, there have been more than 220 new condos built, and only one new co-op.
Do co-ops or condos require more money up font?
Co-ops require significantly larger down payments
Most cooperatives require a down payment of 60-70%, and some don’t allow financing at all. All co-ops require a minimum down payment of at least 20%.
Condos often require smaller down payments
Condos require down payments of only 10-20%, and if you’re buying a new construction it’s also easier to negotiate.
Do co-ops or condos give you more freedom?
You have to deal with more restrictions in a co-op unit
If you ever want to rent out your unit, your potential renters will need to be fully cleared by the coop board, and they are likely to be rejected. Likewise you will need permission from the board for any renovations to your unit.
Condos give you more control
While condo boards can technically refuse any potential renters you may want to lease your unit to, this generally doesn’t happen. And you generally won’t need any approval for renovations so long as they are not structural renovations.
Finding Your Perfect Unit
Is it better to buy a co-op or a condo?
Whether you buy a co-op vs condo comes down to your own personal preferences. Co-ops are better if you prefer to have ownership in your building, want to live in a classic New York vintage building, or want to stretch how far your money goes. However, you may prefer a condo if you prefer to have more control over what you do with your unit, need to make a smaller down payment, and don’t want to go through (or can’t get approved by) a co-op board’s intense and lengthy approval process. Whatever type of unit you’re looking for, Shaker.NYC is here to help. Download our free Ultimate Luxury Buyer’s Guide today, or contact us to schedule a complimentary consultation with a real estate agent.
