Condominiums
Condominium apartments differ from co-ops in that condos are real property. When purchasing a condo, the purchaser is given an actual deed to the property purchased, much like purchasing a home in the suburbs. Since condo owners own real property rather than shares of stock in a co-op building, each condo unit receives a separate tax bill from the city (as opposed to taxes being included in the monthly maintenance as occurs with co-ops).
Condo owners are required to pay monthly common charges similar to the maintenance charges in a co-op (running and maintenance of the building, heat, doormen, etc.). Generally speaking, these charges tend to be lower than in co-ops because there is no underlying mortgage for a condominium building. While there is an application process, it tends not to be as formal and demanding as in a cooperative. The likelihood of rejection is minimal since condo management has the right of first refusal—which is rarely exercised.
Financing for condos is more flexible and in some cases (based on buyer and building financials) financing of up to 90 percent of the purchase price is possible. Immediate subletting of a condo apartment makes this form of ownership a top choice for flexibility, especially among investors, foreign buyers, and parents purchasing for their children. Because rentals are permitted in condo units, some condo buildings can feel transient in nature i.e., you may have a constant rotation of neighbors. The close-knit community feeling of co-op living with long-standing owner-occupied apartments may be lacking.
While the predominant model for new construction tends to be condo, there are still more co-ops in the city than there are condos. Price per square foot for condos is anywhere from 25-30 percent more than for a co-op, and closing costs for condos are considerably higher. Nonetheless, foreign buyers and other investors who opt not to disclose financial statements and account information find condos their purchase of choice.
Amy Elfman is a Teaneck resident and a licensed Real Estate Salesperson for Klara Madlin Real Estate in Manhattan. Contact Amy at [email protected] or visit her webpage http://klaramadlin.com/brokers/Broker_bio.asp?id=98.
By Amy Elfman
