Buyer's Guide

Most properties either built or converted before 1990 are co-operatively owned (Co-ops). Homeowners are called shareholders because they purchase stock in a corporation, and that corporation owns the building.

They are collectively partners in an entity that owns the building, and, in turn, grant themselves the privileges of ownership associated with owning real property in the form of a proprietary lease.

There is a required purchase application process. This is sometimes found tedious and angst-ridden by most people. The good news is that we do this with consistency and our team is designed to make this happen quickly and efficiently.

We focus on what’s important, income and assets, and not on what’s superfluous. A co-op has other characteristics as well.

When you or your neighbors make permanent (non-cosmetic) changes, the building has guidelines and an approval process. If you want to rent, the board may limit you over time, and so on.

Some buildings prohibit you from financing more than a certain amount. Every characteristic of each listing will be recorded for you by us for your reference at a later date.

Well, now that you have read about Co-ops, you might be asking yourself, is there another option? There is!

A condominium is technically defined as an air lot – you own all the air inside of the walls. You can do whatever you want inside your own air. However, there are some myths about condos.

A condo doesn’t have unlimited subletting, there is an application process, and as a condo owner, you are subject to the rules put forth by the Board of Managers. You have a collective interest in the building’s sustainable financial and physical health.

The differences are as follows:

• While a condo can and may restrict subletting, they tend not to.
• While a condo board can deny a sale, it’s rare.
• Condos do not restrict differing types of ownership, such as ownership by an LLC, second home, gifted funds, etc...
• For these conveniences, condos tend to cost 25% - 100% more than co-ops.

What! A House?! Yes it’s true. The author grew up splitting time in a townhouse and a co-op.

A house historically holds a value greater than a co-op or condo. You can get an owner-occupied mortgage for any building with up to 4 units, and the other unit’s rent can offset your costs.

On the other hand maintenance, taxes, and insurance costs can be much more expensive than apartments.