As you do your research on all the different places you could possibly move, you’ve probably heard a few terms and phrases thrown around that you aren’t so sure about. Co-op is likely one of these terms. So, do you know what a co-op actually is?
A co-op, or cooperative, is a lot like a condo. In fact, the two are very similar. It can be quite difficult to tell the difference between a co-op and a condo just by looking at a particular building.
Basically, when you move into a co-op, you are moving into a property that you will typically own shares of. The number of shares you actually own is going to be based on the unit you choose to move into. Confused? Don’t be, it really is quite simple.
A board manages the co-op and decides who can live in the building. The board actually will approve or deny someone’s request to move into the building. If they are denied, they will not be able to buy the unit. Sound smug? Too many people, moving into a co-op is more of a hassle than they think it is worth. If you want to buy a home and live somewhere, why should someone tell you that you couldn’t? Other people love the idea of moving into a co-op. It really just depends on your personal preferences.
Co-ops come with all sorts of rules and regulations – and no two are quite the same. So, if you don’t want to move into a place that has strict guidelines, you may want to steer clear of a co-op and stick to a single-family home!