Cooperatives (Co-ops)
Co-ops represent approximately 70% of Manhattan's available housing inventory. When purchasing a co-op, you're not buying real property but rather shares in a corporation that owns the building. These shares entitle you to a proprietary lease for your specific unit.
Key Co-op Characteristics:
- Typically lower purchase price than comparable condos
- Higher monthly maintenance fees that include property taxes and building mortgage portions
- Rigorous board approval process with extensive financial disclosure
- Stricter rules regarding financing, subletting, and renovations
- Usually require significant down payments (often 20-25%, sometimes up to 50%)
- Transfer taxes and flip taxes may apply upon sale
Condominiums (Condos)
Condos offer a more straightforward ownership structure where you purchase the actual apartment and receive a deed to real property.
Key Condo Characteristics:
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Direct ownership of your unit and a percentage of common areas
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Generally higher purchase prices but lower monthly common charges
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Property taxes paid separately to the city
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More flexibility with financing (often allow 10% down payments)
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Less restrictive rules on subletting and renovations
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Simpler approval process (no board interview)
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More investor-friendly
