If you’re looking to jump from renting to owning in New York City, you’ll likely need to choose between a condo or co-op. Many people combine the two types of homes in the discussion, but the truth is that they’re very different experiences with distinct advantages and disadvantages. 

Many people enjoy the relative ease of buying either a condo or co-op. The prices for these properties are significantly lower than a house and give young professionals less to take care of throughout the year. People also enjoy co-ops and condos due to their proximity to everything — multifamily buildings are the best bet for enjoying life in a densely populated city.

There are many things to consider before selecting the best option for you.

The Difference Between Condos and Co-ops

Condo and co-op aren’t interchangeable terms. Condos are private residences in a multifamily building that includes ownership of any commonly used space. Co-ops have owners that share an interest in the property instead of the individual unit.

They do have similarities, of course. Both are typically managed by associations — condo associations and co-op boards — but the latter have far more power over things like applications and community living standards. 

Similarly, both offer the convenience of living in a multifamily building versus your own private property. You will not be held responsible for the street removal of snow in the winter, for example, which often requires the use of contracted services with heavy equipment and careful removal in NYC. You may also get access to helpful amenities like a doorman, package receptacle and more.

Finally, one stark difference is availbility. There’s a more significant number of co-ops in NYC than condos, but there tend to be more condos on the market at once. Consider the advantages of both home types to help you decide which to buy. 

Buying a Condo

Condos are more straightforward to finance than co-ops since you aren’t as involved in the building. Due to this, you also can keep greater privacy since no one will be deciding on whether you can live there or not.

Condo boards do exist, but they tend to be much less strict than co-op boards, which can take months to approve and will likely require an interview. Co-ops also tend to involve other community residents in the decision. 

Owning the unit means you have fewer fees to worry about than if you lived in a co-op, where you have a stake in the whole property. You will have to pay for utilities and will likely have “common charges” to help take care of the building, but you won’t have the same stake in the entire property that you would in a co-op.

Co-ops tend to have more rules than condos, making condos an excellent choice for you if you want more flexibility. If you decide to lease out your condo, you’re more likely to succeed than trying to do so with a co-op. 

Buying a Co-Op

One of the most significant benefits of living in a co-op is a sense of belonging, with you becoming an investor in the entire community. Many people like co-ops because they provide a sense of permanence they might not feel in other parts of the city. 

Co-ops tend to be in older buildings, providing a more centralized location than most condos. Many are remodeled with luxury amenities you won’t find in condos, including pools, gyms and green spaces. 

While fees in a condo are generally lower, co-op purchase prices tend to be cheaper. There’s also a stricter purchasing process, with the board approving you after a series of reviews and an interview.

Living in a co-ops has both advantages and potential disadvantages. Co-ops tend to have stricter rules than condos, limiting noise and outer decor to certain times of the day or year. Operating like homeowners associations to those less familiar, co-op boards are enabled to oversee aspects of communal living and set standards that may or may not contribute to every resident’s quality of life.

For this reason, co-op purchases can be rife with uncertainty. While co-ops make up 74% of the housing stock in NYC, they are not subject to the same scrutiny in regards to application transparency and fairness that rentals and private homes are. Many applicants have experienced unexplained rejections or, once they moved in, experienced board members and neighbors eager to exercise control over their living situations.

Co-ops can involve tradeoffs. Many beautiful, well-located buildings in the city are co-ops, so purchasing one opens up amazing properties for residents. Some may enjoy the sense of community and input a well-managed co-ops creates, while others may chafe from the influence of their neighbors.

What’s the Difference Between a Condo and a Co-Op?

In general terms, condos offer freedom while co-ops provide community. Still, the experience depends on the individual group that controls the building and the culture established there. 

Deciding to purchase a residence in New York City means you’ll never be far from all the action, but it gives you the freedom and sense of permanency that renting fails to provide. Once you move into your ideal place, you’ll feel right at home.

Author

Evelyn Long is the editor-in-chief ofRenovated. Her real estate work has been published by the National Association of REALTORS®, Rental Housing Journal, and other online publications