What's the difference between a Condo and Co-op?

Many people ask, ‘What's the difference between a Condo and Co-op?’ Today we’ll break down the similarities and differences of each one so you have a clearer picture.

 What's the difference between a Condo and Co-op?

 Many people ask, ‘What's the difference between a Condo and Co-op?’ Today we’ll break down the similarities and differences of each one so you have a clearer picture. 

 First, let’s examine the similarities. When you buy a condo or a co-op the lawn maintenance and home maintenance (like shoveling walks, cleaning gutters, painting and repairing the roof) are handled for you and you’re usually charged a monthly maintenance fee. Either housing option makes a great choice for people who lack the time or physical means to do those things.  So when it comes to day-to-day life there isn’t much difference between the two. But that doesn’t mean there aren’t significant differences between a condo and a co-op.

 Critical Distinctions Between Condos and Co-ops 

 A condo (condominium) and a co-op (cooperative housing project) are called a common interest development or CID. In a cooperative, a cooperative housing corporation owns the building containing the housing units/apartments. As for a condominium, each resident owns an individual apartment in fee simple. Furthermore, the resident also owns an undivided interest in the common elements, which can include things like the exterior walls, roof, pool or other recreational areas. 

 Condos and Co-ops: Pros and Cons

 While there are no significant advantages or disadvantages to a cooperative vs. a condominium ownership, you’ll find particular differences that might mean something special to you. 

 For example, as stated above, many people enjoy the fact a large number of associations provide outside maintenance, but sometimes utilities like water, sewer or cable/satellite TV are included too. Also, insurance to the building and grounds is standard (although you need to purchase content insurance for your belongings). On the downside, you’re locked into your maintenance fee. If you want to cut back on home expenses during hard economic times, you can’t. 

 Hope you enjoyed this intro into the difference between condos and co-ops. In the next couple of weeks, we’ll dive a bit deeper and break down, point-for-point, the differences between condos and co-ops and how it relates to popular topics like taxes, financing and ownership, so be sure to check back.