Cooperative Apartments

A co-op is a short term for a residential property owned and managed by a corporation. When you buy an apartment in a co-op you are purchasing shares in a corporation, as opposed to purchasing actual real estate. The shares you purchase allow you the exclusive right to live in a given unit to which those shares are assigned. A co-op usually has an underlying mortgage that your co-op fee pays all or part of the payments to as well as other costs for the building. This is generally the reason why a co-op maintenance fees can be higher than that of a condo's. Portions of the mortgage payment and property tax are usually tax deductible and can account for a significant reductions in the maintenance payments on an annual basis.

ADVANTAGES		DISADVANTAGES
Typically lower purchasing price on per sq. ft. basis Less legal and financial responsibility for building maintenance and development Generally higher tax deductibles		More complicated approval processes Generally higher monthly maintenance fees There may be re-sell and subleasing restrictions Less flexibility with apartment construction and renovation

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