Advantages of Co-op vs. Condo
1. The primary advantage of condominium ownership over cooperative shares in a corporation is the enhanced value of the former, due to a general aversion by buyers towards co-ops as a consequence of high maintenance and the absence of real property ownership.
2. As a result, a larger market of buyers exists for condominiums rather than for co-ops and condo units will usually sell faster and at higher prices.
3. The ultimate consummation of a condominium is much simpler and more certain, since no Board approval is necessary.
4. More often than not, a reversal in a high transient tenant occupancy building will result since units in the building will be attractive and available to those who wish to be owner occupants. Wouldn't it be nice to live in a building where caring owners are your neighbors rather than transient tenants you don't even know?
5. More lenders are apt to provide mortgages to condo buyers or owners for refinancing at lower rates and more desirable terms.
6. Post-closing advantages exist in a condominium form of ownership. For example, in a rising real estate market, a condominium owner can easily obtain additional equity financing through a second mortgage, whereas such a vehicle is virtually non-existent for a co-op owner.
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