| Posted By |
Message |
cupcake
LIF Infant
Member since 8/11 135 total posts
Name:
|
co-op living
What are the pros and cons of your experience living in a co-op?
|
Posted 4/25/14 9:43 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
|
|
Re: co-op living
I lived in a co-op but as a renter.
Major con to me was that it was a building which provided even less control over our neighbors.
The fact too that they were allowed to rent could also have been contributing to the problems.
|
| Posted 4/26/14 7:24 AM |
| |
|
MissJones
I need a nap!
Member since 5/05 22140 total posts
Name:
|
co-op living
Pros:
no shoveling!!!
no mowing or gardening (although i i do want a garden soon)
it's forced savings (we have built equity comparable to if we rented and saved and that's despite the value of our place being below what we bought it for)
Tax deductions
Cons:
Like anywhere, you never know who your neighbors will be! But in OUR coop, there's no renting, so the quality of the people is higher than with a rental (although we still have our tokers! Haha!)
In OUR building, there's no parking, elevators, or storage. This con is just OUR building though. Other coops do!
Maintenance goes up. It's a community so if one part of the building needs a roof repair,, everyone pays for it.
|
| Posted 4/26/14 7:46 AM |
| |
|
|
|
Re: co-op living
I loved coop living on Long Island, however, I was single at the time and didn't mind hearing the person who lived above me or next door to me. I also found the elderly lady who lived next door would blast the heat in the winter and because of that, I'd have to leave my windows open because my place got so hot! I could literally hear the man above me peeing in the morning. Again, as a single young woman, it didn't really matter! However, I did get married, and as soon as I found out I was pregnant, we put it on the market. Our board was extremely picky and do not have to give a reason why they denied potential renters. They denied the first two buyers and it took me two years to sell. That is the only reason, I tell everyone to NEVER buy a coop! If you're ever in a rush to sell, it could take years.
|
| Posted 4/26/14 9:23 AM |
| |
|
BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
|
Re: co-op living
Posted by summerblessings
I loved coop living on Long Island, however, I was single at the time and didn't mind hearing the person who lived above me or next door to me. I also found the elderly lady who lived next door would blast the heat in the winter and because of that, I'd have to leave my windows open because my place got so hot! I could literally hear the man above me peeing in the morning. Again, as a single young woman, it didn't really matter! However, I did get married, and as soon as I found out I was pregnant, we put it on the market. Our board was extremely picky and do not have to give a reason why they denied potential renters. They denied the first two buyers and it took me two years to sell. That is the only reason, I tell everyone to NEVER buy a coop! If you're ever in a rush to sell, it could take years.
This pretty much sums it up. Our board refused to acknowledge or fix any problems. The board was a group of females that ran the complex for a good 15+ years. It was pretty much a click. They didn't care about anything we had to say. As for the noise, we heard wild sex, bathroom flushing, water issues, oversized illegal dog running all the time. Its a great transition when younger but I would never do it again nor recommend it.
Don't get me wrong, its great at first but it soon got bad fast.
This wouldn't be every property but you want to check space between units and insulation for noise.
Obviously, the perks of maintenance and everything else is a plus
Message edited 4/26/2014 11:03:40 AM.
|
| Posted 4/26/14 11:01 AM |
| |
|
|
|
Re: co-op living
Also, if you are comparing co-ops to condos, co-ops can be more affordable on a monthly basis (or at least it's easier to anticipate your monthly costs), because you have one monthly maintenance payment that covers your pro rate share of property taxes and, in most co-ops, covers some utilities (typically heat and hot water). In a condo, you pay your property taxes separate from your common chargers, and many times you pay all of your own utilities (although that varies by condo).
It's ironic because it can be harder to purchase a co-op - you need a minimum down payment (often 20% for board requirements), and co-ops may have debt-to-income ratio and credit requirements beyond what your lender would require. You also can't get an FHA loan for a co-op. But if you can get past those hurdles, co-ops on Long Island are more affordable than condos, imo.
The downside of a co-op versus a condo is more restrictions (for example, you need board approval to do any renovations to your unit).
As far as neighbors, some would argue the board approval process for co-ops would mean at least the neighbors have been minimally vetted. And many co-ops have rules about renting (how many units can be rented, for example, or have time restrictions for how long the unit can be rented out for... e.g., you can rent it but only for two years), and renters also have to go through board approval.
I think the key with co-ops is to really investigate things like the financial situation (how financially sound the co-op is), and the various rules and restrictions on things like renting. Some co-ops are great and some are really mismanaged and would not be a wise purchase.
But with condos AND co-ops, of course you are gaining a more low maintenance lifestyle in exchange for privacy (co-ops and condos you don't have your own yard... may have your own patio or terrace, you usually share walls, etc.). I think that's the main pro/con.
From a resale standpoint, you don't tend to build up equity as fast in condos and co-ops than you do in a private home. Co-ops, especially, can be harder to sell. There's a narrower buyer pool for them (esp. with the financial requirements).
[All of the above is based on my real estate experience, selling co-ops and condos. I have never personally lived in one... I have only owned a single family home (and prior to that always rented in the city).]
|
| Posted 4/26/14 11:44 AM |
| |
|
ISpoilHim
I think I got this
Member since 11/10 1523 total posts
Name:
K
|
Re: co-op living
Posted by MissJones
Cons:
Like anywhere, you never know who your neighbors will be! But in OUR coop, there's no renting, so the quality of the people is higher than with a rental (although we still have our tokers! Haha!)
As a former renter I find this comment completely out of line. It is not only higher class people who own homes nor is it only lower class people who rent. You have your good and bad everywhere. My trashy neighbors own their home and don't care for it. But my rental neighbors kept their homes beautiful.
Personally I would go back to renting in a heartbeat.
It is comments like this one that attach a negative stigma to renting on LI.
|
| Posted 4/26/14 2:37 PM |
| |
|
olive98
LIF Adolescent
Member since 11/12 791 total posts
Name:
|
Re: co-op living
Posted by ISpoilHim
Posted by MissJones
Cons:
Like anywhere, you never know who your neighbors will be! But in OUR coop, there's no renting, so the quality of the people is higher than with a rental (although we still have our tokers! Haha!)
As a former renter I find this comment completely out of line. It is not only higher class people who own homes nor is it only lower class people who rent. You have your good and bad everywhere. My trashy neighbors own their home and don't care for it. But my rental neighbors kept their homes beautiful.
Personally I would go back to renting in a heartbeat.
It is comments like this one that attach a negative stigma to renting on LI.
I agree! What an ignorant comment.
|
| Posted 4/26/14 6:24 PM |
| |
|
Journey33
LIF Adult
Member since 12/11 1402 total posts
Name:
|
Re: co-op living
You're going to hear all different opinions but I think in large part it's due to the development.
The one I live in now is an amazing development. The board is fantastic, they are financially sound-we've even gotten reductions in our maintenance multiple times while living here.
My situation is unique in that my upstairs neighbor owns the unit but actually lives in NC. He stays here a few nights a month when he is in on business.
For me, its very quiet.
Also, the major benefit is that someone fixes everything for us! leaks, electric, snow shoveling, lawn mowing, etc... maintenance takes care of it all. Im going to miss that when I move into a home.
The board is very strict with their criteria which makes it tough to get in but I have always had a great experience with the people living on my block.
FWIW-no renters or dogs allowed.
The only Con is that it is not a house with a private backyard. Also it's pretty small for us, but there are larger units. I think that is a personal opinion though. My husband would leave here forever.
I have to say there is another development near by to us that is not in nearly as good financial shape. The owners there complain all the time about maintenance hikes and poor upkeep.
I would say do your research on the development. For me it was a great experience. And no flip tax here!!
|
| Posted 4/26/14 7:54 PM |
| |
|
jams92
Member since 1/12 6105 total posts
Name:
|
co-op living
I've rented in 2 different co-ops
The pros are definitely not needing to shovel, now lawn, and having someone there to fix things anytime
The cons in both coops I lived in was lack of parking and neighbors. One problem in my last coop was a smoker across the hall. He stunk up the entire floor and there was nothing we could do bc he owned and bc he only smokes in his apt which is legal. We also had issues with people upstairs and downstairs
|
| Posted 4/26/14 10:25 PM |
| |
|
Anxious3
LIF Infant
Member since 1/13 164 total posts
Name:
floof
|
co-op living
I would never buy a co-op again. Selling was a complete nightmare and we almost lost our house we were buying because of it.
|
| Posted 4/27/14 10:31 AM |
| |
|
|
|
Re: co-op living
Posted by ISpoilHim
Posted by MissJones
Cons:
Like anywhere, you never know who your neighbors will be! But in OUR coop, there's no renting, so the quality of the people is higher than with a rental (although we still have our tokers! Haha!)
As a former renter I find this comment completely out of line. It is not only higher class people who own homes nor is it only lower class people who rent. You have your good and bad everywhere. My trashy neighbors own their home and don't care for it. But my rental neighbors kept their homes beautiful.
Personally I would go back to renting in a heartbeat.
It is comments like this one that attach a negative stigma to renting on LI.
I didn't read it as her trashing renters.
While there are bad seeds everywhere, I think when you live in even closer quarters to your neighbors, the chances of having issues are even higher.
I also think most everyone else on here has said the same thing,
|
| Posted 4/27/14 11:07 AM |
| |
|
iluvmynutty
Mom to E&M
Member since 12/08 1762 total posts
Name:
D
|
Re: co-op living
Posted by Anxious3
I would never buy a co-op again. Selling was a complete nightmare and we almost lost our house we were buying because of it.
I know 2 people that have had the same experience. They could not sell the co-op when it came time that they wanted to buy a house. It was a huge head ache...
|
| Posted 4/27/14 1:08 PM |
| |
|
|
|
Re: co-op living
Posted by iluvmynutty
Posted by Anxious3
I would never buy a co-op again. Selling was a complete nightmare and we almost lost our house we were buying because of it.
I know 2 people that have had the same experience. They could not sell the co-op when it came time that they wanted to buy a house. It was a huge head ache...
I think location of the co-op has a lot to do with how fast it sells. Co-ops in desirable areas of Queens tend to sell pretty quickly, for example. But it takes much longer to sell a Long Island co-op, in my experience. It helps to be near a train station and be able to walk to a village area with stores and restaurants. But there can be a supply and demand issue, too... I've had coop listings in Nassau where 15 units were on the market in the same development, and only one or two sell a year. So like any property you buy, you really have to think about resale value, but especially with coops since most buyers wind up wanting to trade up, at some point (unless it was bought by a downsizer, who may intend in living there more long-term.
It's also really important to have an agent who is experienced with co-op sales and detail oriented, as there are extra complexities when selling a coop (or buying one)
|
| Posted 4/27/14 1:17 PM |
| |
|
Anxious3
LIF Infant
Member since 1/13 164 total posts
Name:
floof
|
Re: co-op living
Posted by Century 21 Dallow - Christine Braun
Posted by iluvmynutty
Posted by Anxious3
I would never buy a co-op again. Selling was a complete nightmare and we almost lost our house we were buying because of it.
I know 2 people that have had the same experience. They could not sell the co-op when it came time that they wanted to buy a house. It was a huge head ache...
I think location of the co-op has a lot to do with how fast it sells. Co-ops in desirable areas of Queens tend to sell pretty quickly, for example. But it takes much longer to sell a Long Island co-op, in my experience. It helps to be near a train station and be able to walk to a village area with stores and restaurants. But there can be a supply and demand issue, too... I've had coop listings in Nassau where 15 units were on the market in the same development, and only one or two sell a year. So like any property you buy, you really have to think about resale value, but especially with coops since most buyers wind up wanting to trade up, at some point (unless it was bought by a downsizer, who may intend in living there more long-term.
It's also really important to have an agent who is experienced with co-op sales and detail oriented, as there are extra complexities when selling a coop (or buying one)
We were in Kew Gardens, less than 10 minutes walk to subway and LIRR in a very desirable complex. Our agents were the main agents selling in our complex (when we purchased, they were the seller's agents) and we had an accepted offer within 6 weeks. We then went and made an offer on a house, which was accepted. The problem was the board. Repeatedly. We eventually sold for $12K less than our first accepted offer because we were about to lose our down payment on our house as they were relisting.
Working with a board means you are at someone else's mercy. They didn't accept our first buyer because she wanted to pay 80% cash. They were afraid she, as a single woman, wouldn't be able to pay her extremely low mortgage AND her maintenance based on an average salary. It was a slam dunk deal for us and they ruined it. It was devastating. We thought we were going to lose our house, our co-op, our down payment and be forced to rent (since we didn't have money for another down payment). Thank god it all worked out in the end but like I said, it was a nightmare.
Message edited 4/27/2014 7:27:56 PM.
|
| Posted 4/27/14 7:24 PM |
| |
|
allIwant
Love my crazy life!
Member since 1/10 9170 total posts
Name:
|
Re: co-op living
Posted by iluvmynutty
Posted by Anxious3
I would never buy a co-op again. Selling was a complete nightmare and we almost lost our house we were buying because of it.
I know 2 people that have had the same experience. They could not sell the co-op when it came time that they wanted to buy a house. It was a huge head ache...
this was my experience...unfortunately I think my board played a part in my initial sale falling through (long story) and it turned into a huge mess.
|
| Posted 4/27/14 8:45 PM |
| |
|
MissJones
I need a nap!
Member since 5/05 22140 total posts
Name:
|
Re: co-op living
Posted by MorningCuppaCoffee
Posted by ISpoilHim
Posted by MissJones
Cons:
Like anywhere, you never know who your neighbors will be! But in OUR coop, there's no renting, so the quality of the people is higher than with a rental (although we still have our tokers! Haha!)
As a former renter I find this comment completely out of line. It is not only higher class people who own homes nor is it only lower class people who rent. You have your good and bad everywhere. My trashy neighbors own their home and don't care for it. But my rental neighbors kept their homes beautiful.
Personally I would go back to renting in a heartbeat.
It is comments like this one that attach a negative stigma to renting on LI.
I didn't read it as her trashing renters.
While there are bad seeds everywhere, I think when you live in even closer quarters to your neighbors, the chances of having issues are even higher.
I also think most everyone else on here has said the same thing,
Holy cow, that's not how I intended it to be. Trust me, I was a renter, too! And yes, I've seen homeowners let their homes go. It's a sad sight for the block and I'm sure very much not appreciated by neighbors.
But when I wrote that, I wasn't referring to renting vs home ownership. I was referring to renting as in subletting. Maybe I didn't make myself clear. I apologize. Sometimes the thoughts I'm thinking aren't correctly conveyed as I type.
To clarify my original comment, I am talking about the fact that in *my* co-op, they don't let you sublet/rent. In many co-ops, they do. And that lets in a lot of undesirable neighbors. Very often, the 'owner' might rent to someone that the board doesn't know about it and might not otherwise approve of.
Anyway, in many co-ops/condos, they don't let just *anyone* in. They do credit checks and want to see your finances. EVERYONE is invested in the situation so they are going to be weeding people out. It's nice to know in many co-ops/condos, they are somewhat discerning. So chances are your neighbors will be a bit more upstanding.
Simply put, I'd steer clear of a co-op that approved of subletting, unless they did board approved subletting and were a strict board. As an owner who had to jump through hoops to get in, I'd be wary and upset if the guy next door gave his key over to a random person. Granted that happens with house buying, but when you're sharing walls, it's a bit different.
So again, you never know who your neighbors are going to be. House, apartment, owning, renting. It's a gamble. But I like that in my co-op, because 'subletting' (clears throat) isn't allowed, that my neighbors and I all have a stake in this place and we all want the best for it.
Again, I apologize if my original comment was offensive. I did not intend for it to be taken that way.
Message edited 4/27/2014 10:59:46 PM.
|
| Posted 4/27/14 10:30 PM |
| |
|
|
|
Re: co-op living
I know people who sit on boards of their buildings and they have a strong element of crazy to them.
That alone would deter me from wanting to go this route.
I'm not surprised people have issues selling as a result.
|
| Posted 4/28/14 5:26 AM |
| |
|
TtcDc2
LIF Toddler
Member since 1/13 431 total posts
Name:
Mel
|
Re: co-op living
I had a coop n it was good for awhile but when i was ready to sell it was a bit$h! There were so many fees n the first buyer i had didnt get approved by the board n i lost money on it.. Very stressful nwhen people ask i will always tell them dont do it!
|
| Posted 4/28/14 10:35 PM |
| |
|
summerBaby10
let's be nice
Member since 9/07 10208 total posts
Name:
Wifey
|
Re: co-op living
Posted by allIwant
Posted by iluvmynutty
Posted by Anxious3
I would never buy a co-op again. Selling was a complete nightmare and we almost lost our house we were buying because of it.
I know 2 people that have had the same experience. They could not sell the co-op when it came time that they wanted to buy a house. It was a huge head ache...
this was my experience...unfortunately I think my board played a part in my initial sale falling through (long story) and it turned into a huge mess.
Same experience. We loved living in our coop. It was beautiful & located in a very desirable area in queens. We had non-stop people & a handful of offers within the first week. The first time, yes the first time, we put the co-op up was last April, we accepted an offer within 2 weeks & between all of the bank paperwork & co-op application, interview, etc, we didn't find out until end of July that the board had rejected the buyers! I was pissed 3 months & most of the summer wasted. This was screwing with our own purchasing of a home. I will never recommend a co-op to young families. It's great if you plan to retire I guess. The second time we listed was in Sept & even though the season was slowing down, we still had several offers. We accepted an all cash (for the same price as the first accepted offer) & they were approved thankfully, but it was much more stressful than normal trying to sell with a co-op board. Do not recommend.
Message edited 4/29/2014 9:19:17 AM.
|
| Posted 4/29/14 9:18 AM |
| |
|
|
|
Re: co-op living
Yes, it is frustrating that the co-op board has ultimate say, and I know that boards can be quite arbitrary in their decisions. In fact, I think in some areas, the boards can still reject an applicant and give no explanation at all! (I believe in Suffolk county, a law was passed to require boards to issue a reason for rejection, so there's less concern over discrimination and more protection for the seller as well.)
I do think that it's very important verify the board's requirements and look at your potential buyer's financials. The fact that they have a preapproval is not enough, as your board may have stricter debt-to-income or other requirements than a lender. Even an all-cash buyer must be well-vetted. Sometimes they do have all cash, but there's concern over having adequate ongoing income to pay for maintenance. When I am selling a co-op, as a listing agent or buyer's agent, I really try to get a handle on the board approval process and requirements, and fully vet the buyer, so no one's time is wasted.
I sell 3-4 co-ops, on average, per year, and I have never had a sale fall through because of a rejected buyer (knock on wood!). Not to say it couldn't happen; I think I've been lucky. But I think it's also important to research upfront. I once counseled a co-op seller client to reject an all cash offer that was even slightly higher than an offer from a 20% down buyer because of concerns over board approval.
But yes, co-ops are harder to sell for sure because of a smaller buyer pool, stricter financial requirements, board approval... all of that. They can still make sense for many buyers... condos can be scarce in certain areas (and/or cost more or on par with a single family home). So for some buyers looking for a low-maintenance lifestyle, a co-op may be the only option. But it's important to go in with eyes wide open (and if you can, it's always good to be on your co-op board!).
|
| Posted 4/29/14 10:09 AM |
| |
|
