Condo vs. Co-op
Housing in New York City is very strange indeed. Newly relocating out-of-towners are often bewildered by the preponderance of co-ops in New York since most other cities have none or very few. Here is a little help to start you off on your search.
Co-ops
Co-ops have a unique ownership structure, which requires buyers to own shares in cooperatives that then leases apartments back to them. There is no “deed” but rather a “proprietary lease”. Potential “shareholders” must provide the co-op board with documentation of their assets far and above what a bank lender might ask for, and submit to a personal interview, prior to purchase. Co-op boards want to be sure residents can pay their dues, known as “maintenance”, since a shareholder in default will create a problem for the entire building’s residents. Thus the co-op board approval process.
Condos
In contrast, condos are real property owned outright. There is no board approval process and buyers are allowed to finance up to 90% of the purchase. As a result of the ease of purchase, condos command at least a 20% premium over the price of a co-op. In addition, approximately 80% of all the housing inventory in New York City is co-op, thereby making the condo more attractive and more costly.
Rentals
The most desirable and affordable apartments rent quickly and most are available for immediate occupancy. Going through the rental approval process can be difficult and a stressful experience, so It is important to be prepared and ready to apply. Some items you will need include a Letter of employment, tax returns, pay stubs and financial statements. However, that’s why we are here, to help you through the process.