Condos vs Co-ops, What’s The Difference?

Co-Op Benefits

  • Exclusivity: You may not know anything about your neighbors in an apartment building or condo, but with a co-op, you may have a say about who moves into the community. Plus, you may enjoy some peace of mind knowing everyone in the building went through the same rigorous screening process you did.
  • Less responsibility: With a co-op, the experience may feel more like renting versus owning a home. You aren’t personally responsible for the upkeep of common areas. Depending on your co-op association, your building may work with a property management company to help with building maintenance.
  • Tax deductions: Although co-ops aren’t considered real estate, co-op shareholders may qualify for homeowner tax deductions, which can include real estate taxes. Depending on where you’re located, you may be able to deduct interest on your loan, your share of interest on the building’s mortgage and even certain maintenance fees. For more insight, consult a qualified tax professional.

Although co-ops typically have attractively low prices, their monthly expenses can be high. Parking, utilities and other overhead costs are shouldered by all

Condo Benefits

  • Real estate: Probably the biggest advantage of buying a condo is earning equity on your property. This means your monthly payments are putting money back in your pocket, and any renovations you make could raise your home’s value.
  • Maintenance: Like co-ops, many of the labor-intensive chores associated with homeownership are typically taken care of by a condo association.
  • Amenities: Although you’ll pay association fees, many condo amenities can save you money elsewhere. It’s not unusual for condos to provide their residents with recreational facilities that are within walking distance. Many condo associations host events for residents to foster a sense of community.

The Bottom Line:

Is Buying A Co-Op Or Condo Better?

Co-ops & condos are popular alternatives to single-family homes for good reason. But deciding which type of home is better for you depends on where you want to live & what plans you have for your home & family.

If you’re interested in renovating, selling or subletting, a condo is better suited for your needs. If you’re looking for something short-term or plan to live in a bustling city, a co-op is an affordable option that isn’t your typical rental unit.

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