If you want to live in Manhattan, you have a few options available, but it can sometimes be hard to know which one is the right one for you or which one offers what. You won’t be able to find single-family houses and will be offered other choices, which may be difficult to understand. Two such places include the condominium and the cooperative. Both have some similarities, but also many differences, so it is important to comprehend both versions so you can make an excellent decision.
Cooperative (Co-Op)
The co-op makes up about 75 percent of the housing inventory in Manhattan and is slightly different than condominiums for sale. While you can still buy a co-op, they are owned by a company. When you buy one, you aren’t buying real property, but rather, you are buying shares of the company. Those shares are what give you your proprietary lease, making you more like an investor instead of an owner.
Typically, these options are more intensive to get into than a condo and you will be paying monthly fees for things like heat, insurance, staff salaries, hot water, building expenses, taxes and mortgages on the building.
You will usually be interviewed by the board to ask you questions before you are allowed to purchase. In most cases, they are the sole decision maker in who is approved or denied, which can make selling and buying more difficult.
Condo
A condominium is very different from a co-op because you own real property. You own your unit though there will be shared or common elements, such as walkways, hallways, elevators and some amenities. Because you own the unit, you will have a separate tax bill, which can make things less expensive (or more so), depending on which neighborhood you live in and other factors.
You will still pay monthly fees, but these are for maintenance on the shared common areas, such as pools, lounges and fitness centers. They will typically be lower for a condo than a cooperative.
Most people agree that a condo is the better purchase, but it depends on your financial needs and your lifestyle. They can be harder to come by in large cities like Manhattan, but they can give you more for your money, and you’ll have a deed, unlike a co-op. Therefore, it is probably best to look at both apartment options when searching for a new place to live.
