Co-ops are more fun.
Co-ops are a wonderful way to tap into the power of a group. Co-ops (technically known as "cooperative corporations") are overseen by a board of directors, who are elected each year by the residents. As such, all residents are actively involved in the governance of the building. A great advantage of the co-op structure is that we're able to negotiate lower rates for services, including utilities, property taxes, and insurance.
How is co-op ownership different from condominium ownership?
Condominium ownership is direct property ownership, while co-operative ownership is a share of ownership in a corporation, with the right to occupy the designated unit. For co-operatives, taxes are assessed on the entire co-operative as a whole, not on individual units. The tax is paid by the corporation but the proportionate share for each unit is passed on to the individual unit owner as part of the monthly fees. For condominiums, the local government assesses and bills each unit individually, and unit owners pay the assessed tax directly to the government.
How is co-op ownership different from condominium ownership?
Condominium ownership is direct property ownership, while co-operative ownership is a share of ownership in a corporation, with the right to occupy the designated unit. For co-operatives, taxes are assessed on the entire co-operative as a whole, not on individual units. The tax is paid by the corporation but the proportionate share for each unit is passed on to the individual unit owner as part of the monthly fees. For condominiums, the local government assesses and bills each unit individually, and unit owners pay the assessed tax directly to the government.
