While you may think that a co-op and condominium are the same, the reality is that these are two very different kinds of real estate. Condominiums are real estate you can own, whereas a co-op grants you only a share of a building.
Before you buy a co-op or a condominium, it's important that you understand the differences between the two. In a city, it's common for people to purchase one of these two types of properties. They are similar, but they're not the same in every way.
You've been interested in purchasing either a condo or a cooperative housing project. You have the money to put down on either, but you're not sure which one will end up making you more money in the end. You want to have an easy lifestyle there and also to obtain investors into your community.
Condominiums, which are usually referred to as condos, are homes similar to many others on the market. They offer you a place to live and provide you with many of the rights that you'd gain as a traditional homeowner. The difference is that the development of condominiums is managed by an association, and that association makes rules for the community. The individual owners of the condominiums share ownership of common areas while the association maintains the common areas and sometimes outside areas of the homes.
It has always been your dream to own a cooperative. You want to be part of something that grows a community while bringing you a passive income. It's possible, but you need to be careful.
Condominium living can be an exciting idea, but only if you understand what you are taking on. Is condo living really right for you? There are many things you need to consider before you make that decision.
A condominium is similar to a traditional home in that you can sell and buy it, but it's different because common areas are co-owned by the people who live at the property. Condominiums can be converted into apartments or vice-versa. Each one has the potential to be sold with an individual deed and is subject to a separate mortgage. The entire property does not need to be purchased as a whole.
When you live in a condominium, there are bound to be issues that come up from time to time. There is typically a manager and board that works with members to work out issues that arise, although you can work out a problem on your own with the owner of another condominium if you two are amicable. Here are a few ways that you can work through a problem when it comes up.
Recently we discussed the potential problems of hiring a condo or co-op board director as a vendor. It's important, however, for the board to maintain control of who can hire vendors as well as contractors and not to give your management company authority to hire someone without the board's approval. It's also essential for someone on the board to monitor the invoices as well as the actual work on a regular basis.
It's not unusual for condominium or co-op board members or directors to have careers that would make them a good candidate to be hired as a vendor by the board. For example, some may want to act as a property manager for foreclosed units or for units belonging to New Yorkers who winter in Florida or spend extended periods away from home on business.