Step 2: The Differences Between Co-ops, Condos and Townhouses

When buying real estate in New York City, you have three basic choices: condominiums, cooperatives (co-ops) or townhouses/brownstones. Each type has certain advantages and disadvantages, and you should understand each before you make your final purchase. Keep in mind that these are very brief summaries; for a more detailed explanations of each visit CityRealty.com.

Condominiums
In a condominium, a purchaser owns the apartment plus a percentage of the common areas of the building. They take title by deed which is recorded in the county clerk’s office. When you buy a condo, you enter into an association that provides services like maintenance to the common areas for a monthly fee.

Because you own the property, you will pay property taxes (separately or inclusive) with your mortgage payments, and the closing costs will be higher than that of co-ops.

Cooperative Apartments
A co-op is a short term for a residential property owned and managed by a corporation. When you buy an apartment in a co-op you are actually purchasing shares in a cooperation, as opposed to purchasing the real estate itself.

You then have exclusive rights to live in a given unit to which those shares are assigned. Co-op maintenance fees can be higher than that of a condos, but portions of the mortgage payment are usually tax deductible. Keep in mind that most co-op boards require that you have at least one third of the purchase price available in liquid assets.

Townhouse & Brownstones
These are freestanding 2-5 story building usually built before the war (known as “pre-war”). Brownstones are generally more elegant, while townhouses tend to be more plain and have smaller living spaces. Usually, these types of buildings are home to families and well-established people who enjoy their privacy.

The prices of these buildings vary depending on location, size, condition, and legal status. You will enjoy the comforts of owning your own home, you have total control over maintenance, and it’s easier to sell then condos or co-ops.

See a full list of the advantages and disadvantages of each at the CityRealty New York Buyer’s Guide.