Condo or Coop?
I’d love to get opinions on whether people would lean towards a well-managed pre-war coop (24 units total) or a new development condo (8 units). Assume factors like layout, neighborhood, unit price & monthly costs are all relatively equal. I know we’ll have to negotiate transfer taxes on the condo; any other advice? The idea…
I’d love to get opinions on whether people would lean towards a well-managed pre-war coop (24 units total) or a new development condo (8 units). Assume factors like layout, neighborhood, unit price & monthly costs are all relatively equal.
I know we’ll have to negotiate transfer taxes on the condo; any other advice?
The idea of owning the property vs. shares is more appealing, but new construction is certainly a bit scary…they don’t build ’em like they used to.
Thanks Brownstoners!
well, I would agree agree with Petebklyn on one point at least – about noise in the building.
we rent in a “New Condo”. I pretty much NEVER hear my neighbors through the walls
occasionally I might hear some walking above us
but nothing insane
Also I think it’s better to go on a case by case basis rather than make sweeping statements about condos vs. co-ops.
There are some ridiculously notorious co-op boards who are filled with incompetent folks managing the finances and making the decisions that end up costing owners in the co-op more in the longrun.
I would look for an apt building about to go into bankruptcy, get a bunch of apt hunters looking to buy, and get all the units for an absolute song. Then turn it co-op. It happens, trust me.
BKRed;
I am the owner of a new condo. I agree with Pete: folks on this site are just spouting a mantra when they say that pre-war construction is always better. It depends upon the builder. If you are considering a condo built by a developer with a proven track record, you should be fine. Understand, however, that there are invariably some “teething” problems during the first two years of a new building’s life. If you understand that, and take it in stride, you should be fine. As Pete mentioned, there are upsides to new construction. For instance, my apartment is very well insulated against both noise and the outside environment. My heating and AC bills are considerably less than what it cost me when I owned a pre-war.
I would also be wary of those who make sweeping generalizations about the financial stability of co-ops versus condos. Both building types are well-established in NYC. It really depends upon the particulars of the building. How much reserves do they have? Is the budget well-established? Is it well-managed?
My main advice to you, spoken from experience, is a certain type of risk when you are buying into a new building, be it co-op or condo. That risk is that you don’t know what type of “culture” will evolve in the management of the building, and if it fits with the lifestyle you want. For instance, in my condo we have a Board that is extremely stingy about making improvements to the common areas, down to putting up nice decorations in the lobby. This situation aggravates me, but seems to have the support of the majority of the residents. Moreover, I’m not pleased with the way they enforce the rules wrt people storing stuff on our balconies and once again, I’m in a distinct minority.
When you buy into an older building (be it condo or co-op) you know what you are getting, in terms of the building’s management. Not so with a new building.
“I’d look for co-op with very hefty reserve fund.” – kinda like looking for spouse with a trust fund.
what mopar said.
I’d look for co-op with very hefty reserve fund.
Pre-war.
I wouldn’t be so sure about your mantra they don’t build like they used to. Modern construction usually has concrete floors and that is much better for not hearing your neighbors kids running around the apt.
Some builders may not have much sound insulation between apts – others could be quite good. I think much better today than 20 years ago.
But really new condo stuff – residents could be more transient and there could be a lot of renting out going on.
This is better controlled in coop.
Normally a condo is more convenient because they allow subletting and don’t require board approval, but in this environment, a coop is likely to be more financially secure and stable.
I’ll let other folks chime in on their feelings on new construction, but I want to point out one thing a lot of people overlook in the condo/coop debate: closing costs. The closing costs on a co-op are usually a manageable $3-$5K. To close on a condo, prepare yourself for five-figure closing costs. Definitely take this into account when you’re budgeting, especially if you don’t plan to hold the property for a good length of time. Good luck!