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MichLiz213
Life is Good!
Member since 7/07 7979 total posts
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Co-op maintenance fees
DH and I have started the process of researching moving into a bigger place. We are weighing all of our options. I have been looking at co-ops on MLSLI and found two that I loved from the pictures posted, but instead of taxes they had maintenance fees. One of them had a maintenance charge of almost $1100. Is it $1100 broken up into a monthly charge or is it $1100 a month in addition to the mortgage?
Thanks!
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Posted 1/3/14 10:09 PM  |
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SusiBee
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Member since 3/09 8268 total posts
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Co-op maintenance fees
In addition to the mortgage.
It covers the co-op's property tax, operating costs, insurance. It may cover your electricity and cooking gas, as well as extra charges for parking, a/c, in unit washer/dryer.
Part of the maintenance charges are deductable on your taxes.
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| Posted 1/3/14 10:49 PM |
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MrsW326
LIF Adult
Member since 11/10 1132 total posts
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Re: Co-op maintenance fees
I purchased a coop (since sold) we pd 660/ month MAint+ electric & cable. Everything else was housed on that Maint fee. Tax deductions vary between coops our was approx 50% deductible as that was the portion going towards real estate taxes. Coop living is very easy, no maintenance etc, but house living was definitely what fit our family. HTH!
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| Posted 1/4/14 7:31 AM |
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MrsG823
Just call me Mommy.
Member since 1/11 5570 total posts
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Co-op maintenance fees
Maintaince is a monthly fee .
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| Posted 1/4/14 10:40 AM |
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MichLiz213
Life is Good!
Member since 7/07 7979 total posts
Name:
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Co-op maintenance fees
Thanks for clarifying, ladies!
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| Posted 1/4/14 11:12 AM |
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SusiBee
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Member since 3/09 8268 total posts
Name:
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Co-op maintenance fees
Forgot to add that maintenance also pays the co-op's mortgage if tbey have one.
Look at the financials.
Are they good ?
What is the mortgage, how long is it for ? (My co-op took out a new mortgage when the old one was satisfied so that we could do capital improvements instead of raising maintenance and charging assessments.)
Does the co-op charge assessments? What are they used for ?
Is there a flip tax when you do sell ? (Mine has a flip, and it generates a lot of income that goes into our reserve fund, again so we can keep maintenance low and not have to assess at the drop of a hat. We are also 100% owner occupied, no subleasing permitted.)
I am on the board. It makes me privy to a lot of information and I have a direct say in how our funds are spent.
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| Posted 1/4/14 11:45 AM |
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jams92
Member since 1/12 6105 total posts
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Co-op maintenance fees
As others mentioned its your monthly fee in addition to the mortgage but it does not necessarily include taxes
I looked at coops in queens and some did include the tax and others didn't - definitely ask a realtor or the board
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| Posted 1/4/14 8:15 PM |
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2BadSoSad
LIF Adult
Member since 8/12 6791 total posts
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Re: Co-op maintenance fees
Ours is $1003/mo.
In that, is the actual property maintenance, your water, your heat and your taxes. So while it SEEMS like a lot. Its not really considering what it covers.
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| Posted 1/4/14 10:35 PM |
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SusiBee
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Member since 3/09 8268 total posts
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Re: Co-op maintenance fees
Posted by jams92
As others mentioned its your monthly fee in addition to the mortgage but it does not necessarily include taxes
I looked at coops in queens and some did include the tax and others didn't - definitely ask a realtor or the board
A co-op owner should not have to pay individual property tax as they do not own the physical property.
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| Posted 1/5/14 9:17 AM |
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Re: Co-op maintenance fees
Posted by SusiBee
Posted by jams92
As others mentioned its your monthly fee in addition to the mortgage but it does not necessarily include taxes
I looked at coops in queens and some did include the tax and others didn't - definitely ask a realtor or the board
A co-op owner should not have to pay individual property tax as they do not own the physical property.
This is true.
Co-ops are generally more affordable than condos, both in terms of purchase price and in terms of monthly expenses, because there are no separate property taxes paid. The monthly maintenance fee covers a pro rata share of taxes, building/exterior maintenance and overhead, and in an apartment style co-op, usually big utilities (heat, water). So it's easier to estimate monthly expenses. Condos, you pay common charges (usually a few hundred a month) as well as property taxes (which are often in the same range of a small house in the area... some condos in Nassau have annual taxes of $9K or $10!).
But on the flip side, co-ops can be more difficult to buy, because (i) FHA doesn't lend on co-ops, so a buyer must be able to obtain a conventional loan if financing is required, and (ii) there are often financing restrictions imposed by the board... many co-ops require 20% down and only allow financing for 80%... on Long Island, some co-ops are more lenient and require 10% down instead of 20%. So while co-ops can be more affordable from a monthly payment standpoint in the long run, they can be initially harder for first-time buyers to buy!
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| Posted 1/5/14 10:45 AM |
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luvbuffet
LIF Adult
Member since 7/10 6470 total posts
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Re: Co-op maintenance fees
I'm in a 1 bedroom and pay 720 in addition to my mortgage. As much as I love where I live, I currently hate the management.
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| Posted 1/5/14 7:32 PM |
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hotelcalie
LIF Adult
Member since 12/05 1392 total posts
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Re: Co-op maintenance fees
Posted by 2BadSoSad
Ours is $1003/mo.
In that, is the actual property maintenance, your water, your heat and your taxes. So while it SEEMS like a lot. Its not really considering what it covers.
Mine is $1100 and covers so much! Plus about 50% is taxes and I get about $4K back.
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| Posted 1/7/14 11:13 AM |
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Re: Co-op maintenance fees
Posted by hotelcalie
Posted by 2BadSoSad
Ours is $1003/mo.
In that, is the actual property maintenance, your water, your heat and your taxes. So while it SEEMS like a lot. Its not really considering what it covers.
Mine is $1100 and covers so much! Plus about 50% is taxes and I get about $4K back.
Good point - With co-ops, you should always find out how much of the maintenance fee is tax deductible (because it covers property taxes). I've sold co-ops in Nassau where maintenance payments were 65% tax deductible. So that definitely helps offset the expense.
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| Posted 1/7/14 6:18 PM |
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