Everything You Need to Know Before You Buy a Co-Op or Condo
Buying a co-op or condo is like buying a house, though there are a few key differences. Condos and co-ops are often less expensive than free-standing houses. Condos and co-ops are typically smaller, and you share at least one wall with another unit, plus common areas like courtyards, parks or gardens.
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Condos Versus Co-ops
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Condos and co-ops are both similar in that you live in a unit in a building and usually are not responsible for building maintenance, but you are responsible for maintenance of your particular unit. However, there are differences. For example, when you buy a condo, you own that unit, but when you buy a co-op, you own a share in the housing corporation, but the corporation owns the unit real estate. Also, expenses in a co-op are shared among all building tenants, whereas in a condo, everyone pays their own utilities and expenses. Both allow you to build equity and enjoy the financial and tax benefits of owning a home.
Privacy
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If you are a private person and like to keep to yourself, think twice before you purchase a condo or co-op. In either property, you share a building with other tenants. You often have people living above, below and/or next to you. Because of shared walls, ceilings or floors, you can often hear your neighbors, especially if they have loud voices or a heavy walk. They can hear you if you are being loud. You will also inevitably run into your neighbors in the hall, stairway, elevator or common areas. This can be a great way to meet people and make friends, but if that does not interest you, a condo or co-op is not a good housing choice.
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Homeowners Association
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Most condos and co-ops are managed by a homeowners association. This group is responsible for building and property maintenance, like mowing the lawn, shoveling snow, other landscaping, cleaning and maintaining common indoor our outdoor areas, and maintaining the gym, pool or recreational facilities. This might be attractive to you, as you do not have to do these things yourself. However, there are a few downsides. First, the association performs this maintenance on its own schedule, not yours. If you like to sleep in, you may be awoken by a lawn mower or snow shovel. Also, these services come with a price. Association fees can cost hundreds of dollars each month on top of your regular mortgage and other home expenses. Before you buy a condo or co-op, find out exactly what the monthly association fees are, as well as what services they provide.
Living Space
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Your living space in a condo or co-op is more limited than a house. Many houses have yards that you own, while condo or co-op buildings usually do not. If there is open space, it is shared among all tenants. Also, your condo or co-op unit is likely smaller than a single-family home. Some are bigger than houses, but houses can have many bedrooms, which is great for families with children. Condos and co-ops often have two or three bedrooms, but usually not more than that.
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References
- Photo Credit Condo image by Leticia Wilson from Fotolia.com
