Updated over 8 years ago on . Most recent reply
Appreciation: Condo vs Co-op
Can anyone point me in the direction of analytics showing the appreciation of similar sized condos and coops in the New York area for the past 30-50 years? It seems that condos have appreciated greater simply due to having a larger supply of buyers by not having the restrictions, but I would think that the exclusivity of coops would compensate by creating a superior environment for owners, making it a more desirable place to live. I'm curious if condos have always outpaced coops or if maybe the recent disparity comes from the influx of foreign investment?
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Coops in NY have a long and trouble history. Boards are tough to get through, and usually have high credit and down payment hurdles. Too many have strict rules about being able to rent them out. And the coop board process can take months, with lots of nonrefundable fees, just to be rejected with no reason given.
Back in the 70's and 80's many of the corporations ran into financial trouble because the share holders stopped paying their mortgages so the corporations had to raise their maintenance fees to cover the interest payments. Coops usually have strict rules about pets.
In a coop, you don't own your unit, you just own shares in the corporation. So, when the corporation runs into trouble so do the shareholders.
Most of the condos are newer and more modern. You actually own your unit and pay your taxes like a homeowner. There are no restrictions on renting them or out or other lifestyle issues. Because they tend to be limited in the area and are usually with newer construction, condo prices have risen with the general housing market.
There's nothing more desirable about a coop. There are just more of them than condos.