3 Types of Home Ownership

CO-OPs, Condos and Townhouses

CO-OP

Ownership/Terms of Purchase

  • Proprietary lease
  • You are purchasing shares of the apartment corporation

Pricing

  • Generally less expensive with higher maintenance fees & assessments

Financing

  • Terms determined by co-op board of directors
  • Often have minimum cash requirements

Maintenance/Fees

  • Maintenance fee contributes to general building upkeep as well as the mortgage of the building
  • Tend to be higher but a portion may be tax deductible

Subleasing

  • Subject to co-op board rules

Additional Considerations

  • Interview with co-op board required
  • Board can approve or deny any applicant they choose

Condo

Ownership/Terms of Purchase

  • Real property
  • You receive a deed as you would a house

Pricing

  • Generally more expensive but allows for more generous financing

Financing

  • Flexible terms
  • Often up to 90% financing is permitted

Maintenance/Fees

  • Maintenance fee contributes to general building upkeep
  • Tend to be lower but are not tax deductible
  • Residents also pay individual property taxes

Subleasing

  • Dependent upon management, but tends to be more flexible

Additional Considerations

  • Flexibility and straightforward nature of purchase appeal to investors and foreign buyers

Townhouse

Ownership/Terms of Purchase

  • Real property
  • You will receive a deed

Pricing

  • Price per square foot averages are generally higher than co-ops and condos

Financing

  • Flexible terms

Maintenance/Fees

  • Owner responsible for property taxes, structural maintenance, water/sewage, insurance, utilities, heat, trash removal, and repairs

Subleasing

  • Ability to rent out for additional income

Additional Considerations

  • No services or amenities included