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When looking at coop
owners which is available only which
they own their unit and common grounds
until they decide to move, at which point
ownership transfers back to the corporation.
They cannot transfer title or ownership at any
point and in reality never truly own
anything.
Buying a NYC
Coop financing
Estimated time to close purchase 3-4
months 
When the satistics are
measured the fact is nearly 80% of
the ownership opportunities coming from
the coop financing, this method of
ownership is the most popular. Advantages
of purchasing a coop financing over a
condo include:
-
Higher visibility and
availability for
buyers
-
Lower cost due to
competition
-
Owners receive "shares"
in the entire building--and therefore
own--the building's common
features
-
Owners may be eligible
for a number of tax
deductions
The way the corporation first
pays the real estate taxes, mortgage of the
building, salaries and maintenance; that cost
is then split among the owners of the
residences, letting each owner paying an amount
that is in relation to the "share" that he or
she has in the
building.
Coop financing will be
directed and are started and run by
corporations. Instead of selling units to
individuals in exchange for rent, coop
financings sell "shares," which include both
the residence and a portion of the common areas
of the building, including the fitness
area, laundry, lobby, etc.
There is still a monthly common charge similar
to the maintenance charges in a coop
financing.
In a coop financing, the
building's Board of Directors decides whether
to accept applicants as owners or not. A
potential buyer fills out an application and
interviews with a representative of the
building. Rules and ownership details vary by
building, so ask for additional information
before agreeing to buy. Also, ask what the
corporation's tax structure is, as owners are
sometimes eligible for tax
deductions.
One of the only disadvantages
of living in a coop financing is the extreme
down payment expected. Although financing is an
option for some, most will be expected to pay
quite a bit more than the traditional ten
percent down. 50% is not uncommon, and some
coop financings don't finance at all, expecting
full payment up front.
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