When you start to think about moving out into your own space you might be faced with the decision between a condo and a co-op. It’s important to remember that these two types of housing do differ from one another. The majority of differences pertain to where your money is going and the type of rental agreement that you will be signing into once you decide that you’ve chosen the right property.
Buying a Condo
If you decide that a condo is the right choice for yourself and your family, you’ll be buying a sliver of a giant piece of property that will be developed into individual condos. As the property owner it is essentially like buying a house or a townhouse, just in an area where there will be other residents that also own condos. You will be responsible for paying your own real estate taxes and common charges (maintenance fees) for all of the common areas of the building. With a condo, you won’t have to worry about an underlying mortgage.
Buying a Co-Op
By buying a co-op you will be essentially buying stock in whatever company owns the apartment building that you’re moving into. The building owners will lease individual units to interested buyers and in most cases it will be under a long-term lease. You’ll be responsible for paying maintenance fees on a monthly basis which could incorporate maintaining the building property. You’ll also have to worry about property taxes and a possible underlying mortgage.
In the event that you’re buying a co-op or a condo as your starter home and you will eventually desire to move into a townhouse or a detached house, it is important to take the resale value into account. According to real estate professionals, condos are substantially more likely to sell for more than a co-op of the same size. It is important to note that as a condo owner, you will have to pay other closing costs though you can sometimes roll that into the cost of the condo when you put it up for sale. This can mean that you’ll get substantially more money to put towards your new home if you decide that buying a condo is the best decision that you can make. It will also be far easier to work with a real estate agent to sell your property as quickly as possible.