Residential Co-ops for Phoenix? (Scottsdale: apartments, rent, condominiums)

[Potential_Landlord]

Hi- now that Phoenix has become officially very expensive to live I wonder if we should start some co-ops here? I heard they have them in New York City, but not sure how they work there. Back in Germany, particularly in the Catholic areas, residential co-ops are common and they work very well keeping rents/ownership affordable and maintaining buildings very well. The idea is that you pay an initial down-payment (not sure that's the correct term) and then rent which stays affordable as long as you live there. You get your down-payment back when you leave, which hardly ever happens in Germany.

[Burning Madolf]

Originally Posted by Potential_Landlord

Hi- now that Phoenix has become officially very expensive to live I wonder if we should start some co-ops here? I heard they have them in New York City, but not sure how they work there. Back in Germany, particularly in the Catholic areas, residential co-ops are common and they work very well keeping rents/ownership affordable and maintaining buildings very well. The idea is that you pay an initial down-payment (not sure that's the correct term) and then rent which stays affordable as long as you live there. You get your down-payment back when you leave, which hardly ever happens in Germany.

I don't think what you describe as German is the same as an NYC co-op.
The simplest way I remember an NYC style co-op is you are basically buying a share in a corporation that allows you to live in an apartment (ex. 100 equal units, you buy 1 share which allows you to live in 1 unit).
You then share the costs of maintaining the property.
Different from a condo in that the co-op board can choose not to allow you to buy in.

[Prickly Pear]

There are many co-OPs that exist here in Phoenix. Most of them are in the Midtown and South Scottsdale areas for one reason or another.

[ringler24]

We owned a Co-Op in Brookyn, NY. No thanks. We had to get the board to approve our purchase, our sale, and our inside renovations. A total pain in the butt.

[teeej]

Originally Posted by Prickly Pear

There are many co-OPs that exist here in Phoenix. Most of them are in the Midtown and South Scottsdale areas for one reason or another.

And they were a bargain 5-10 years ago, not so much now.

[Voebe]

You don't just "start" co-ops. NYC has a long history of co-op apartments, but it's pretty much the only place in America where they're common. It is correct that you own shares in a corporation (not 1 share, but some odd number like 947), and it varies according to the apartment. There are also condominiums, both in NYC and the rest of the country. It's not a matter of a down-payment. You buy the unit. There is no guarantee of affordability in either co-op or condo, but monthly fees tend to be less than renting. And you do not get back any down-payment. Instead you sell your unit, maybe at a profit, maybe at a loss.

In Phoenix, for some reason, may people seem to think that a condo is an architectural style. For instance, people ask, "Do you live in a house or a condo?" - as if a condo simply means "apartment."