What is the Difference Between a Co-op and a Condo? Pt 3

In part 3 of "What buyers need to know before buying a Co-op or Condo", I will outline "The  Financial Differences Between a Co-op and a Condo" and how to interpret those differences.

A Co-op: Most co-op buildings have an underlying mortgage on the building and the mortgage payments are included as part of the monthly maintenance fee paid by each shareholder. The mortgage interest and the real estate tax portion are part of your maintenance on the unit. Because mortgage payments and real estate taxes are included, maintenance fees tend to be higher in co-ops than in condos, but this is usually offset by a lower purchase price.

A Condo: Condominiums do not carry underlying mortgages on the building and individual owners pay their own real estate taxes. Therefore, maintenance fees tend to be lower in condos than in co-ops, while purchase prices tend to be higher.

I'm only a phone call away for help.

Next week we will cover: How to Compare Monthly Housing Costs - Owning vs. Renting



Written By: Akim R. Smyer, Real Estate Associate Broker - Coldwell Banker Residential Brokerage