Is coop living really that terrible???

My stbx and I, just listed our house. I'm trying to figure out my next move. I'm seriously considering buying a 2 bedroom apartment in our town. I have two toddlers (3 and 1.5 boys). So I expect we can make the space work at least while they are in elementary. My family lives in the same town like walking distance, as will their dad, so I know I'll have plenty of free storage for seasonal stuff and bigger things i.e., sports equipment. But I just can't swing a condo right now. They are almost double the price of coops in my town. Also, renting is actually more expensive than buying too and you get less space and no amenties (I estimate renting to cost about $500-$600 more a month).

My only concern is folks tell me living in a coop can be a nightmare with the rules, dealing with the board, etc.
I feel like I'm a generally easy going person so I don't really get what the "headache" is. I know renovations need to be approved and there are other silly rules, but so what? Any experience?

Financially, it seems like the right decision right now. And I really, really don't hate the idea of oceanfront living, a pool, gym and direct beach access. My one concern I'd ability to sell in the future, but who the heck knows what will happen then. Ideally I'll find a place that allows subletting if necessary. The rental market by me is good for LI standards.

Is coop living really that terrible???

Message edited 5/27/2021 4:33:08 AM.

Re: Is coop living really that terrible???

I feel like it's ideal for a single mom because you don't have to worry about all the issues that come with a house- cutting the lawn, snow removal, something breaks and needs fixing, etc.
A house is a LOT of work and money.

Is coop living really that terrible???

The only downside I see is when you go to sell. The board needs to approve the person buying your place. So that adds one more level of hassle to it. Otherwise seems like a good plan.

Is coop living really that terrible???

Really it will depend on the building and the board that is in control. And board members could change during the time you own it.
My mom had a co op and hated it. She was constantly being fined for having her window open a crack during the winter to keep the hair moist. She was not allowed to put air condtioners in the windows, it had to be through the brick wall and the board would not approve it. She ended up with free standing units. If she so much as attempted to hang a picture outside of normal "construction" hours she would be fined for excessive noise. You need to really know what the coop rules and regulations are. They can vary so much from building to building.
She could not sell her co op fast enough once she bought it. So ultimately it will depend on a lot of things and you should do your research before buying.

Is coop living really that terrible???

Not at all. I lived in a coop most of my life and up until 3 years ago and I miss it sometimes.

I think it sounds like a great fit for you and it's much better than paying more money renting. Sure coops have rules but as long as you're aware of them and abide by them you shouldn't have any problem.

As far as the coop board, the coop I own has a super strict board but even with apartments sold all the time.

Re: Is coop living really that terrible???

Re: Is coop living really that terrible???

You should look into the maintenance and other fees because that's typically where the expenses come. Also, you mentioned subletting - but I assume you mean the potential to rent your coop in the future? Many don't allow that, so be careful.

Is coop living really that terrible???

I lived in a coop (just me and my dog), for about 7 years. For the most part, I loved it there. Every once in a while there'd be some issue that the board made a decision about that seemed ridiculous, but overall, I really liked living there. If that makes the most sense for you, go for it.

Re: Is coop living really that terrible???

I agree that it depends on the co-op - in terms of how much of a pain the rules are. Some management companies and co-op boards can be tough to deal with, others are not.

You definitely have less freedom in terms of doing any kind of work/renovation on the co-op unit, and even decorating the exterior (some have restrictions about wreaths on doors and that type of thing).

You mention that you have 2 toddlers/preschool aged boys, so consider the fact that you will have shared walls. Make sure the co-op is child friendly and not a bunch of downsizers/elderly or single young people. Second floor units require carpeting/area rugs (80% of floors must be covered) to minimize noise from walking/running overhead, and most co-ops have rules about playing music after certain hours, etc. But are you going to be stressed out about having young, active boys in this apartment who may want to make noise?

Also, there are more restrictions when buying a co-op. Most require the buyer to have 20% down (some co-ops on LI will allow 10%), and you must be able to get a conventional mortgage. You will have to go through board approval process - if you are in Nassau, the board can reject you and not even provide a reason. In Suffolk, they do need to give a reason. So while co-ops are often more affordable than condos, they need a more financially qualified buyer with more money to put down.

Fees are usually lower on a co-op than a condo, because instead of paying separate taxes, common charges, utilities, most of that is rolled into one monthly maintenance payment. Maintenance on LI co-ops typically includes your pro rata share of property taxes, all maintenance of building/common areas, and heat and water and cooking gas (just not electric and cable/internet/phone).

But keep in mind that there may be parking fees (not all co-ops come with a spot, too). There may also be assessments for things like repairs and renovations to the common areas/building. Depending on how well a co-op is financially managed and how much the reserves are, you may get more frequent assessments. So before you buy, I'd ask about assessments and how often maintenance goes up. Your attorney will also review all of the financial info of the co-op before you sign a contract.

Is coop living really that terrible???

Thanks for the feedback everyone. Very helpful!

Re: Is coop living really that terrible???

We lived in a beautiful co-op in Manhattan for several years and we loved it. We rented and never had any issues. It may have had to do with the construction of the building but we never heard any noise. My neighbor played the piano and we could barely hear it, only heard it if it was nightime and completely silent in our apartment. We never had issues getting anything fixed and they gave us color choices when they were painting the apartments. A positive experience all the way, building was gorgeous and maintained, doorman and amenities.

Re: Is coop living really that terrible???

We live in a 3BR co-op, always have. We love the lifestyle. We have to 2 kids who have been raised here. One is in elem and the other in MS.

Im sure if you have crappy neighbors, its not as fun. We have awesome neighbors, under us and next to us, and we all hang out regularly. The board barely pays attention to anything anyone does and as long as you follow the rules, which I dont find hard to do bc they arent unreasonable, they leave you alone. We can make any cosmetic changes we want, just nothing structural without approval. We have a pretty easy going board.

We love not being "house poor" - our mortgage is less than our rent used to be and we dont spend weekends doing yardwork or repairs around the house. We literally just enjoy our evenings and weekends. Thats our favorite part. We have needed a new roof, new boiler, new walkways and we didnt have to do any of it. Our co-op is also in very good financial shape, so none of it costs us a dime over our monthly maintenance (which is our water, heat, taxes and actual maintenance)

Is it cozy sometimes, yes but its not like we are in a shoebox. Our unit is about 1100 sq ft, 3 BR, 1 bath. Phenomenal school district, and a walk to their schools.

We never intended to stay here, it was our starter home and turns out, we loved the lifestyle and the fact that we dont have to spend all this money on a house and can use it for vacations and experiences with the kids that we otherwise probably couldnt.

Message edited 3/2/2018 11:33:23 PM.

Re: Is coop living really that terrible???

We lived in a coop for 7 years and didn't have any major problems ( before we sold a new neighbor moved in above us and it sounded like elephants but that can happen in any apartment building). We listed it and had an offer within 3 weeks so no problems selling.

Re: Is coop living really that terrible???

I am in a co-op in Queens for 20 years, and I am also on the board.
Honestly, I've had enough of shared walls. My downstairs neighbors smoke like fiends, so my apartment constantly stinks. I have to speak with them again to do something to contain it. If not, I will have to have management intervene.
Before them, I had a nasty old ***** who made living there unpleasant. We popped open champagne when she died.

But, I love my apartment. It gets lot of light, is spacious, and our house rules are pretty decent. Maintenance is not high and our maintenance staff are great.
I am so torn.

Is coop living really that terrible???

Co-ops often don't retain value the way condos do. You only own shares of the corporation that owns the co-op. Of course every co-op is different but I know a few people who got "stuck" in their co-op because they didn't realize the rules would be strict and/or are upside down.

Is coop living really that terrible???

We had one for 10 years. DH was on the board, so that helped us with selling although our board was pretty good about vetting potential buyers. Our maintenance went up but stayed despite new windows, new roofing, new fencing. So be sure to check the financials of the building.

Ours didn't come with parking spots so that was hard but not terrible.

It was fine for us. We had to move because we were having #2 and it was a 1 bedroom walk up.

What I didn't like was that the people below smoked and my clothes often smelled of smoke because it came up through the floors.

We lost money when we sold but that was because we bought high in 2005. It was good for us though because it did help us with our downpayment when we finally sold.

Good luck!

Is coop living really that terrible???

I lived in one for 10 years. Selling was a nightmare. I literally had 7 buyers, and they rejected the first 6 for various reasons. They changed the rules and the minimum selling price all the time. 7 contracts. I had to pay for it to sit empty for three years because I got married and had a bag and bought a house. I had planned on renting it but the week I found my first renter they decided no more rentals.

Never, ever again.

This was in Suffolk, so very different from the city.