Co-op Vs. Condo (Fort Lee, Englewood, Edgewater: apartments, to rent, condos)

[kylewilliam]

Hello, this is my second post and my second request for help. Sorry about it but coming from Europe it's the only way I can get good advices on housing.

Anyway, my wife and I are currently renting a 1 bed. apt. in Edgewater and we love it. However we are also thinking about buying a property as we will be staying here more likely for the next 2-4 years and it is scary to think to spend additional $ 70,000 or more in rent over that period of time.

We might as well invest those money and buy a property.

I'm seeing that co-op apt. and more reasonably priced against Condo in similar location and amenities. Is it really that much more convenient to buy a condo rather than co-op ?

I figure some of you might have some real-life experiences and would love to hear them. What's the worse thing that can happen if I buy a co-op vs. a condo ?

I really have no idea, thanks for you suggestions.

[ira]

The biggest difference between co-op and condo is that you don't really own your co-op. You usually own 49% or it and the Board own 51%. Because of that, you can't do anything (almost) in your own apartment without the Board's approval (including if you want to rent it out). While co-op's purchase price is usually much lower than what you would pay for the condo, there is a reason for it. Maintanance fees can be ridiculously high. Depending on the area and the financial "health" of the Co-op Board, they coud run as high as $500 a month. That's on top of your mortgage, taxes, etc.

Having owned both co-op and the condo in the past, I would advise you against buying a co-op. Of course, if condo is not within your budget, then you don't really have a choice. There is a lot of information available online - just do some research before you buy.

Good Luck.

[CJ-FROM-NJ]

Also with "buying" a co-op, you don't own the property - you own shares of the business/corporation that owns that property (although you do live there). If the shares plummet tremendously and the company goes bust or they can no longer afford to keep the building maintained, i.e. pay taxes.....they must sell the property and you are out on your butt.

[kylewilliam]

thank you for the infos.

I think co-op are now officially out of question. I'd rather keep on renting.

However $500 for maintenance for this area does not sound out of this world based on what I am hearing (no less than $350/month).
I mean, of course it's a ridicoulous amount of money, but that's the case for a lot of things here.

I'm just addicted of being so close to the city and with no kids who would want to leave ?

Thanks again.

[downtownjc]

To clarify on taxes--the main reason that co-op maintenance fees are high are that they *include* the property taxes. So you have to do the calculations to see if tax + maint. for a condo is different than the maint. alone for a co-op.

Also, as others have mentioned, when you own in a co-op, all you technically own a share in the building and the exclusive right to use your particular unit. Because you don't actually own your unit outright, the co-op must approve your purchase (and again when you sell to a new owner), and often nearly any interior improvement requires the authorization of the co-op board. The right to use your unit also often comes with strings attached, such as not being able to rent your unit.

Also, because of the unique ownership structure, many banks will not do mortgages for co-ops; often a building will have a list of approved lenders and your will most likely end up using one of them.

Co-ops aren't always a bad idea -- in NYC they are pretty much your only option except for new construction -- but condos do tend to be much more convenient to close on and flexible once you own. (Co-ops were the main option for owning an apartment before laws were created allowing condos, but now that there is a choice condo structures are generally preferred.)

[danfau1974]

If i'll buy condo apartment, i could rent it out, am i right?
Could you advise me a good realtor site, where i can find condo apartments?
Do you know, what is the rent of 1 bedroom apartment in Fort Lee or Englewood (from.. to...)?

thanks alot,
Dan

Originally Posted by ira

The biggest difference between co-op and condo is that you don't really own your co-op. You usually own 49% or it and the Board own 51%. Because of that, you can't do anything (almost) in your own apartment without the Board's approval (including if you want to rent it out). While co-op's purchase price is usually much lower than what you would pay for the condo, there is a reason for it. Maintanance fees can be ridiculously high. Depending on the area and the financial "health" of the Co-op Board, they coud run as high as $500 a month. That's on top of your mortgage, taxes, etc.

Having owned both co-op and the condo in the past, I would advise you against buying a co-op. Of course, if condo is not within your budget, then you don't really have a choice. There is a lot of information available online - just do some research before you buy.

Good Luck.