Coops On Long Island Are Still Affordable
I owned a co-op for 7 years. I was newly divorced and didn't want the whole large property thing. That would mean spending less time with my then 7 year old son and more time mowing, weeding, and shoveling snow, which is not exactly one of my favorite past-times to begin with.
With co-ops, you own shares, not the unit and property.
Co-ops do well on Long Island because empty-nesters also want to do less maintenance.
It's affordable to the newlywed couples out there and single career women and men and it's still an investment.
In some areas where single-family homes have lost 20 to 25 percent of their value, co-ops have fallen only 10 to 15 percent. Not bad huh?
Usually included in your maintenance fee are property taxes, which can be deducted on your tax return (consult with your tax advisor for the percentage), heat (a lot of older developments are still using oil), landscaping, garbage removal, management staff, superintendents, security guards and security system, maintaining the exterior of the building, hallways, gardening, upkeep on the painting, lobby area, elevators, pool and other ammenity maintenances.
As a Co-Op owner, you are responsible for the walls in. Meaning, general up-keep like if there is a hole in the wall, you have to fix it. In a lot of developments you cannot knock down walls or put one up unless you get approval from the Co-Op Board. That leads me to this:
Co-op Boards - They are all different. Once you go into contract, your agent should give you a packet in order to get ready for your interview with the Co-op Board. Some Boards require 10% down, others 20% regardless of your bank requirements. So keep that in mind. They need to know almost the same information as your bank will. Your employment, income, tax returns, references, etc. The interview is close to the last step in your purchase. It can run anywhere from 5 minutes to a half hour or more.
Some interviewers will be really nice, others will maintain a professional aura. Do not let that intimidate you and make sure you answer the questions honestly and with tact. A Co-op Board can turn you down and they do not have to disclose why so make sure you keep your composure. Some of them will make you feel like it's the Spanish Inquisition. Just breathe a sigh of relief when it's over and go about your day.
When I purchased mine, it took 5 months to close. Now, it's up to 2 to 3 months. Much better than then.
I enjoyed living there. It was a smaller community within a larger one. It was peaceful and quiet and I met a lot of nice people and still maintain those relationships now.
The reason we moved you ask? We needed more space like a full basement. I have a husband and now my son is 14 and has more "stuff" lol. My husband is a runner and triathlete so of course he acquired more stuff for that. We needed more closet space and larger rooms. I missed having a lot of people over at one time so we bought a townhouse just a few blocks form our former co-op development.
If you cannot afford a single-family home, condo or townhome, a co-op is the way to go!
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