January 3, 2020 | The King-Brown Team

Types of Home Ownership

CO-OP

Ownership/Terms of Purchase


  • Proprietary lease
  • You are purchasing shares of the apartment corporation


Pricing


  • Generally less expensive with comprable/lower maintenance fees unless there are assessments


Financing


  • Terms determined by co-op board of directors (case by case)
  • Often have minimum cash requirements


Carrying Costs


  • Maintenance fee contributes to general building upkeep, property tax, building staff, etc.
  • A portion may be tax deductible


Subleasing


  • Subject to co-op board rules but typically not permitted (co-ops are not investor friendly)


Additional Considerations


  • Interview with co-op board required
  • Board can approve or deny any applicant they choose


CONDO

Ownership/Terms of Purchase


  • Real property
  • You receive a deed as you would a house


Pricing


  • Generally 20-30%+ more expensive versus co-op but typically considered more 'liquid'


Financing


  • Flexible terms
  • Often up to 90% financing is permitted


Carrying Costs


  • Common Charges (CC's) contribute to general building upkeep (not tax deductible)
  • Residents pay individual property taxes directly to the city


Subleasing


  • Dependent upon management, but tends to be more flexible. Often with 6-12 month minimum lease term 


Additional Considerations

​​​​​​​

  • Flexibility and straightforward nature of purchase appeal to investors and foreign buyers


Townhouse

Ownership/Terms of Purchase


  • Real property
  • You will receive a deed


Pricing


  • The 'width' of the home is key. Price per square foot averages are generally higher than co-ops and condos


Financing


  • Flexible terms


Maintenance/Fees


  • Owner responsible for property taxes, structural maintenance, water/sewage, insurance, utilities, heat, trash removal, and repairs


Subleasing


  • Ability to rent out for additional income, no restrictions


Additional Considerations

​​​​​​​

  • No services or amenities included but the ultimate privacy for those who seek the elite townhouse lifestyle



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