A coop condo is a type of housing where residents live in separate units with shared common areas, such as a pool, recreation center, or playground. However, each has a different method of ownership. When you buy a condo, you own the unit itself and a percentage of the common areas. When you buy a coop, you’re actually purchasing a share of the overall property, and your share gives you the right to live in your designated unit. Think of co-ops the same way you might think about investing in the stock market: You’re a shareholder, so you have certain rights and a say in how the co-op is run. Here are some key differences between a condo and a coop:
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Ownership: When you buy a condo, you own the unit itself and a percentage of the common areas. When you buy a coop, you’re actually purchasing a share of the overall property, and your share gives you the right to live in your designated unit.
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Price: Co-ops are generally cheaper upfront than condos, but they can be more restrictive in terms of how you can alter your space.
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Management: Condos have condo associations, and co-ops have a board of directors whose members can vote on changes or additions to existing rules and policies. Both typically have rules about how you can alter your space.
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Long-term vs. short-term: Given the pros and cons of both condos and co-ops, the first step in figuring out which one is more viable for you is to consider how long you plan on living in the unit. Since co-ops are cheaper upfront, long-term residents might end up saving quite a bit of cash compared to buying a condo. Co-ops are better suited for short-term dwellers, while condos may better fit those seeking housing that’s more long term.
In summary, a coop condo is a type of housing where residents live in separate units with shared common areas, but the method of ownership is different from that of a traditional condo.
