The majority of people who are seeking out information about a co-op and a condo know the basic differences between these two types of living spaces. These include the fact that building rules tend to be much stricter with a co-op, even though they make up a larger percentage of the housing stock in New York. Co-ops are also less expensive than condominiums, but it’s worth doing some research to make sure that you have made the right decision for you.
The gap between the number of condos and coops in New York has been narrowing, though. The reason behind this is that there are newer developments that have a greater supply of condos. One of the biggest differences between condos and co-ops has to do with the approval process. The majority of condos now require that buyers submit an application that is quite similar to co-ops. For the most part, though, co-ops tend to be more stringent with their financial requirements in order to purchase the condo.
When you’re comparing the differences between condos and co-ops, condos cannot reject potential buyers, but they do retain a right of first refusal. It can be more difficult to meet the financial requirements of the co-op, because buyers might be mandated to come up with a minimum of 20 percent of the total purchase price. If a building is really strict, there is no financing allowed at all, so you should always ask these questions before submitting your application.
Do your research before deciding to buy a condo or a co-op. The approval process and the financing required are most likely to be two of the bigger factors you consider. Enjoy your new home in New York!