High rise condo or pre-war coop? (Chicago: real estate market, subletting, to rent)

[AAVC]

We are looking at buying a place in Gold Coast or Streeterville, moving from out of state. Love Chicago and as empty nesters would love to enjoy the city life and what Chicago has to offer. I love old architecture and the character of the older homes (we live in a lovely pre-war home right now). What are some of the things we need to know when considering buying a coop? Any additional risks/issues with that, as opposed to buying a high rise condo? We do love the amenities that a high rise would offer, however, the beauty of these older buildings can't be beat - the older they get the more beautiful they get, whereas the look of the "newer" buildings deteriorate in time. Thanks for any insights you might be able to offer.

[movin1]

Make sure you know what the HOA fee is in a high rise condo, they can be very high. I found I didn't like living in a high rise, too many neighbors in close proximity and the time spent on elevators and waiting for elevators was a drag.

[ToriaT]

There can be very high HOA fees in a condo and special assessments for things like parking lots, roofs, and elevators. Of course you can have these in low rise buildings too but in a high rise they can be extremely expensive. Also in many coop buildings, the price of the units are relatively cheap but the fees to live there are almost like paying rent every month.

[movin1]

Oh yeah, I forgot about having to rent or buy a parking space in the high rise condo I owned. I'm not familiar with the coop concept. Frankly, I'd look for a house to buy in Edison Park or somewhere like that that's not far from the city. Make sure you know what the property taxes will be, they vary a lot depending on where you live.

[AAVC]

Originally Posted by movin1

Make sure you know what the HOA fee is in a high rise condo, they can be very high. I found I didn't like living in a high rise, too many neighbors in close proximity and the time spent on elevators and waiting for elevators was a drag.

Indeed, HOA fees tend to be high... I figured, between HOA dues, insurance and property taxes, would be close to $3K +/- a month for a three bedroom in a good building. But that includes all the monthly bills. I don't believe a single family home would bring you below that number when you add up the property taxes, utility bills, and insurance, or even close, not to mention the yard work and house upkeep/repairs, with no comparable amenities.

[Hiruko]

Originally Posted by AAVC

We are looking at buying a place in Gold Coast or Streeterville, moving from out of state. Love Chicago and as empty nesters would love to enjoy the city life and what Chicago has to offer. I love old architecture and the character of the older homes (we live in a lovely pre-war home right now). What are some of the things we need to know when considering buying a coop? Any additional risks/issues with that, as opposed to buying a high rise condo? We do love the amenities that a high rise would offer, however, the beauty of these older buildings can't be beat - the older they get the more beautiful they get, whereas the look of the "newer" buildings deteriorate in time. Thanks for any insights you might be able to offer.

It is really difficult to give you guidance without knowing more about your budget and financing. Co-ops are similar to condominiums, but the ownership structure is completely different. In a co-op, you are purchasing shares in the corporation that owns the building that entitle you to the use of a particular unit. In a condominium, you are purchasing a unit. New build co-ops are extremely rare and co-ops tend to exist at the extremes of the real estate market. They are usually either very inexpensive or very expensive. Co-ops are more likely to have bundled utilities, so that monthly HOA figure you see will typically cover all utilities, taxes, and insurance. The most well-run co-ops can offer a homeowner savings over a traditional condo. Co-ops often have financing restrictions (higher down payment requirements, for example) and most lending products will not allow you to mortgage cooperative shares.

[citylove101]

In a coop there can be more severe restrictions on subletting, as the whole purpose of them was to ensure a community where everyone knew everyone and lived alike. Because of that, coop boards also have a rep for being stricter and more dictatorial than condos— though that obviously varies by building.

Also, coops generally take a really deep dive into your financials. In a condo, whether you can buy a place is basically between you and the mortgage lender. In coop the board is likely to ask for your financial records too, because unlike a condo, all the other tenants (shareholders) are on the hook if you can’t meet your payments. There’s one mortgage on the building, not one for every tenant, like a condo. Banks can be unfamiliar with coop setups too (though not here in New York), and not want to make a mortgage if you need one.

The monthly nut in a coop is usually higher than a condo because it includes taxes, most utilities, building amenities, and sometimes even parking, like this one near U of C:
https://www.zillow.com/homedetails/5...57918303_zpid/ But most coops are in the grand, but older buildings that are indeed very beautiful, and were often built w/o garages. Back in the day, you rang for the chauffeur and he worried about where to put the car!