Condo vs Coop | Monthly Fees Explained NYC
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- Опубликовано: 21 окт 2024
- As a first time home buyer in New York City it is very important for you to know the differences between condo and co-op monthly carrying costs. Besides the purchase price, your monthly carrying costs are also an important factor to consider when trying to determine what you can afford to buy. At the end of this video you’ll know the important differences between condo vs co-op monthly fees, what do those fees cover and how they are calculated.
Book your FREE 30-minute consultation call with me if you are looking to buy, sell or rent in New York City or if you just have questions regarding NYC Real Estate.
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What’s up everyone. My name is Sargis, I am NYC based real estate agent with CORE and this channel is all about New York City real estate when it comes to buying, selling or renting.
Email me at sargis@corenyc.com to book your Free 30-minute one-on-one consultation if you are looking to buy, sell or rent in NYC or if you just have questions regarding NYC Real Estate.
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If you are looking to buy an apartment in NYC, 2 most popular types of properties you’ll see are co-ops and condos, and since those are 2 totally different type of ownerships, the monthly carrying costs for both are also a little different.
No matter if the building has a few apartments or a few hundred apartments, the building itself needs a budget in order to operate and this budget is what every apartment owner pays every month. The monthly fees for condos are called common charges, which is also known as HOA. Moving forward I am going to use the term common charges, since this is what we use here in NYC.
So common charges are what every apartment owner in the condo building pays in order for the building to operate properly.
Common charges cover all operation and maintenance cost of the building, such as the elevators, mechanicals, and there are buildings where some of the utilities, might be included in your common charges. It also covers the maintenance of all the amenities in the building. Typical amenities that the buildings offer can be gym, yoga room, bike room, laundry room, kids playroom, common lounge area, rooftop, outdoor terrace, pool, some condos might even have sauna, golf simulation room, hot tub and things like that. The common charges also cover the staff salaries, which can be the doorman, porters, super, the management company fees and any other building’s expense, such as all the building’s insurance polices, supplies, services like landscaping, pest control, window cleaning, etc.
These payments go directly to your condo association every single month.
Condo associations are run by the board of managers. Each year the board with the management company create a projected budget for all the building’s maintenance and operating costs for that year.
The budget will also include a portion that will be contributed to the building’s reserve fund each month. The reserve funds are usually used for any emergency repairs or to cover any planned maintenance cost.
So the building’s operating and maintenance budget will be paid collectively by the unit owners every month. And the bill for each apartment depends on the percentage of common interest that the apartment has.
With co-ops, this monthly fee is called a maintenance.
Since here you are not buying a real property, each apartment has a specific number of shares allocated to it. That means when buying a co-op apartment, you are buying the shares that are allocated to that apartment. So instead of the deed and title, which are what you get when buying any real property, you’ll get a stock certificate, showing your ownership of those shares and the proprietary lease will allow you to occupy your specific apartment in perpetuity, as long as you continue owning those shares.
With co-ops, you don’t own a real property, instead you own shares in a corporation, and the real property in this case is the whole building and the cooperative corporation itself is responsible for paying the real estate taxes for the entire building.
So with co-ops, the maintenance bill not only covers the operation and the maintenance of the building, amenities, staff salary, and for some buildings even utilities, but it also covers your portion of the real estate taxes.
What's up everyone. Email me at sargis@corenyc.com to book your Free 30-minute one-on-one consultation if you are looking to buy, sell or rent in New York City or if you just have questions regarding NYC Real Estate.
Great explanation
Thank you Ava
So I am assuming with those monthly payments there is no equity adding to your apartment right?
Correct. Your monthly common charges and maintenance are going toward the operation and maintenance of the building. It has nothing to do with your apartment mortgage payments
Great video !
Thank you. Glad it was helpful
Suze Orman says to not buy a condo or a Coop, but that's all their is in my price range. ugh!
If you can get on with low maintenance like under 400 is good and make sure they have a history of low increases... Also most of it may be property taxes which is deductible... Check for foreclosures or seller with issues looking to just get rid of property.... I got mine in 1990s for 59k. 15 yr mortgage and very low maintenance.. key is location price .... And quality of building the apt is in. 😊
Don't go by size. It's cheaper than a house to maintain.... house you have to pay for maintenance and equipment and lawn and roof and water heater and whatever goes wrong higher utilities and you probably will have more space that you will fill with more stuff😊😅😅😅
Thanks for taking the time to share your thoughts about this topic. That's one of the main differences between owning a condo/coop vs a house, where the owner is responsible for everything. There is no one to share the cost of the maintenance and repair.
I’m looking for a Condo to buy , but since I have no experience I wanna ask how much I can make monthly clear if I’m renting it ?if hire property management and gross monthly income is about 1500$? I wanna know what the expenses ,thx
You can reach out to me at sargis@corenyc.com and we'll schedule a call to talk about the details.
I think coops can work fine for me, but not now
Great to hear that. You can let me know whenever you are ready if you need any help