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How to choose between a condo and a coop? Some good tips!

So let’s say you are looking for a 2 bedroom apartment for $200,000-250,000 in White Plains.  Then a coop is your only option and it is a good one.  Let’s say you can afford $400,000 and up so you can buy either a condo or coop.  Then I say you should look at both options and compare the monthly costs.  I have a great “after tax analysis” which is an excel spread sheet (one for condos, one for coops) where you can figure out very easily your monthly payment before and after tax (see attached samples.)

Here are several things to remember when making the comparison:

  1. If you are low on a down payment condos may be a better option.  Many coop buildings require 20% down.
  2. If your credit score is less than stellar, go for the condo, because the coop board may turn you down.  There is more paperwork with a coop which must be submitted such as tax returns and reference letters so be prepared to disclose your job, earnings etc to your neighbors.
  3. If you prefer newer buildings, a condo is for you; conversely, the older buildings are mostly coops (a few exceptions like the Chateau in White Plains) so if you love pre-war go coop.
  4. If you have a pet, you will have more choices with condos.  We have a few coop buildings that accept pets, but the rules tend to be stricter.
  5. If you want the option to be able to rent your unit should you move in a couple years and it is not the best time to sell, go for a condo.
  6. If you want to live with mostly owners, and not have a lot of renters, let’s say a less transient population, go for the coop.
  7. Coops have monthly maintenance including taxes, so normally about 50% tax deductible; condos have separate taxes and common fees, the latter are not tax deductible.
  8. Coops the heat is included in the maintenance; most condos you control your own heat and pay $80 – 300/month for it.

If you still aren’t sure contact  me and I will assist you in making the right decision!  Happy hunting!

tax analysis

tax analysis

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