Co-ops are one of our specialties. Sherry Schneider, principal of CENTURY 21 SCHNEIDER cut her teeth in the real estate business buying, selling, and managing co-ops. If fact, she handled so many co-op sales year after year that we have set up a Co-op division within our firm.
Co-op sales transactions can be more complicated than a house sale. There are just more steps to be considered. Be sure that when you are ready to buy or sell a co-op that you ask to enlist with one of our Co-op specialists.
FREQUENTLY ASKED QUESTIONS REGARDING CO-OPS.
What is a co-op? A co-op is a real estate corporation in which you purchase shares that equate to your apartment. Therefore you become part owner in the building corporation.
When I purchase a co-op I have to pay monthly maintenance on the top of my mortgage payment. What is generally included in my monthly maintenance? Items included in your monthly maintenance are your real estate taxes, heat and hot water expenses, sometimes cooking gas, all of the costs to run the property which include the staff salaries, contracts with outside vendors to care for the landscaping, snow removal, doorman, and any amenities the property may have. Generally about 1/2 of the monthly maintenance equates to your real estate taxes and the underlying mortgage interest. At the end of the year you will be provided with a statement showing your share of these expenses. These are tax deductible items on your tax return.
I hear that maintenance always goes up, is this true? This is a correct statement, however maintenance may not go up every year. The property must be maintained, whether this means a new roof is needed or the cost of insurance has gone up. These rises in expenses are allocated to all the owners in the co-op. Remember however if you lived in a condominium or a single family home and you needed a new roof or expenses go up you must expect increases as well.
When researching into buying a co-op you will want to know how often and how much the maintenance has gone up over the last couple years. Additionally when purchasing a co-op you want to know if there are any building projects that are anticipated in the near future that could increase the maintenance.
Is a co-op a good investment? Absolutely. You are building equity rather than just piling up your rent receipts month after month. Many times it is less expensive to purchase a co-op than it is to rent an apartment. Many people purchase a co-op to build up equity in hopes of later reselling the unit and buy another piece of real estate.
At CENTURY 21 SCHNEIDER Realty we have a well educated staff of co-op specialists who are ready to go to work for you. Free free to contact our office at any time with any further questions or submit your question to firstname.lastname@example.org