What is the difference between a Co-op and a Condo?

What is a Condo?

A NYC Condo is an apartment that can be purchased like a house, in that it is “real property”.  You have to pay your own taxes as well as a monthly common charge that contributes to the upkeep of the building as a whole.

What is a Co-op?

In a NYC co-op, you own shares in a corporation, or cooperative, which is where the term co-op comes from. These shares translate to your apartment, but you don’t own it outright as you would “real property”.  You also pay a monthly maintenance fee which goes in part to the maintenance of the building.  That fee includes your share of the taxes of the building, so a portion of the maintenance will be tax deductable. 

What is the difference between a Co-op and a Condo?

In a co-op, you technically own shares in a corporation, or cooperative, which is where the term co-op comes from. These shares translate to your apartment, but you don’t own it outright as you would a condo or a townhouse.  You also pay a monthly maintenance fee instead of the comparable monthly common charges and taxes of a Condo.  That maintenance includes your share of the taxes of the building, so will always be higher than a comparable Condo common charge.  However, if you add a Condo’s monthly common charges and taxes together, they often come close to a comparably sized Coops’ monthly maintenance.  A NYC Condo is an apartment that can be purchased like a house, in that it is “real property”.  You have to pay your own taxes as well as a monthly common charge that contributes to the upkeep of the building as a whole.  Approximately 75% of the apartments for sale in New York City are co-ops, therefore they tend to be slightly less expensive than a comparably sized condo due to the laws of supply and demand. Since the bulk of condos have built in the last 15 to 20 years, they tend to be considered “newer“ then comparably sized co-ops, which are often of the “pre-war“ style of construction.