CO-OP VS CONDO - WHICH ONE IS RIGHT FOR YOU?

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Charles Weinraub AKA “The Handsome Homebuyer” is the owner of Mandalay Holdings Inc, a local real estate development conglomerate that includes Captain Permit LLC. Charles graduated from Wantagh High School before completing his Bachelor’s in Business Administration at Hofstra University and finally attended NYU for a master’s degree in Real Estate Development. Charles has been featured in Long Island Business News, Newsday, and other local publications as a rising star in the Long Island Real Estate industry. He is sought after by institutional investors and high net worth individuals to safely deploy capital in the Long Island real estate market.

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[hamb]

When you rent, you are basically helping someone else pay off their mortgage plus, Your rent can easily go up, let's not talk about the utilities which most of then do not cover when you rent.

[jwingels]

I am a 66 year old divorced male. I don't want to cut the grass, shovel snow, or do maintenance any longer so I just want to buy a 2 bedroom condo & stay there until I can no longer be independent or pass away. Does that make sense?

[elmeromero]

That I was thinking about, it is only 150-200 different from rent it, it is much better rent it because of maintenance and plus a bigger down payment, I have the money, but I think in starting a business with it.

[chrisclemente]

Hey, I’m a little lost on your reasoning. You say that you won’t make money on the buying of the condo, but sometimes that’s not what people are looking for - they’re just looking for a place to live with a minimal to no mortgage. If someone is buying a 500k condo, yeah that seems dumb because that is a really expensive condo and you can just buy a house with that money. But getting back to my original statement, sometimes you’ll take the hit in closing costs so that you don’t have to take a huge mortgage out but have a place to live for 3-5 years. “Losing money” doesn’t mean “losing value” if I actually lived in that condo for 3-5 years and then upgraded when I was ready. If I break even on it, I’d say that was a pretty amazing deal.

[isabellek]

I think this is a bit subjective. For me personally I purchased a condo in my mid 30s at the time interest rates were low. I specifically ruled out coops due to multiple realtors advising against co ops. The thing you said about condos not allowing a sale or controlling the price of a sale, or even getting permission to rent I was told the opposite by the realtors that it’s coops that do that not condos. Not debating just sharing. In either case the building I’m in seems to not care what the owners do majority of my building is renter occupied I also ruled out any studios and one bedrooms. Ideally I was looking for a house but if I couldn’t find a house which I didn’t I would only entertain condos that 1) located next to nyc 2) had waterfront skyline views 3) low monthly costs 4) 2 plus bed 5) washer dryer. On my end my mortgage including the fees and prop taxes comes out less than what I was paying when I lived in nyc for a studio. I have a gorgeous view and while I hope to find someone to settle down one day, I know that 2nd bedroom will be an ok place for a kid for atleast the first 8 years. So when I bought it I anticipated to upgrade to a house. Later on I don’t mind renting as my condo covers majority of the repairs. I’d mostly be responsible for drywall or door problems but pipes, electric, windows, heat all fall under hoa.

[scottsowles]

Projected Realtor commission when selling is too low
Could have just said a good rule of thumb is that you shouldn't buy any home as a residence unless you're sure you're going to live there for at least 5 years

[lcjennah]

I spent 41k on a 3bd, 1ba, finished basement with free parking 10 years ago. It has now appreciated to 200k. Should I sell it or should I keep it? The maintenance is only $388/month. The taxes are included. I pay utilities.

[judgedrew]

If you buy a co-op. Can you sell it again at the same price?

[CynthiaRiosTV]

What if you buy a co-op for 80, 000 cash HOA fees of 800 a month 2bed room you plan to live there for the next 10 years and your allowed to rent it out. I would say a co-op is worth it. Because a 2bed room apt isn't 400$ it's more like 1400$ to 2000$ these days. I like co-op Payless monthly then renting especially in Yonkers NY

[shannonpackan]

Hey Charlie, you usually do not pay the same fee's when buying and selling. Usually the seller pays the realtor fee's so your example seems incorrect. As the buyer, you would actually have fewer fees like closing for the loan, about $5k. The seller has more fees like the entire realtor fee -$20K (4%). So after buying the unit ($5k closing fee's) then selling the unit several years later ($20 realtor fees) so the all in costs should be around $25K not $50K. Additionally, these fees would be similar for traditional real estate like buying a house so I don't find your reasoning for not buying a condo or co-op to be valid. There may be other reasons, but I you did not explain those.

Also, increases in real estate values are affected by market, economy, location and type of real estate, so it true that some properties may increase in value faster than others. Unfortunately, there is never a guarantee that property will increase in value but most do when if purchased in a desirable area and are well maintained.

[partyguy]

What if i found one for under $60k
Seems almost worth for for such a small investment to me

[SamMcKinley]

What about in an area with cheap co-ops?

[tonyliu]

Hey Charles. Very informative video! If I understand correctly, purchasing a condo would lead to minimal cash gains, should you choose to rent or sale in the short term.

But doesn't this apply to any property whether it be single level, town home, etc... Is there additional downside of a co-op vs condo compared to other residential properties when making a sale or renting?

Thank you!!!

[infinateexpress]

Yea I went down that road and decided to get a single family. Yea the maintenance is a bitch but I don’t have to answer to nobody

[Solrac]

Real estate is right for those with deep pockets and whose needs are catered to depending on life style. If you are a childless person/ couple then you dont need much space. Also banks and developers have large leverage so you are at their mercy and whim.

[ladydiana]

This advice only applies to jabroni’s who want to start a family

[galactic]

I agree pretty well to Charles points. Business investors, sale agents, developers and even the freekin governments speaks about (or rather try to convince people) to purchase a home, any type of homes. However, it really looks like it's all one sided and favors more everyone but the buyers. Bipeds (we), are complicated multigenerational beings, and most humans change a lot every 10 years or so, and sometimes extremely so, like having unexpected twins, divorces, loss of employment with the need to relocate. I find that the government is really not educating and assisting the society in general with the realities of housing. The governments at every levels could be helping us citizens with a lot more intel, professional advice, guidance and $billion developing plans in favor of tenants, non luxury non profit co-ops....

[rbeygarcia]

8:02 Oh I wanna see more, alright. Of you. I feel you wear too many articles of clothing. Could do without the shirt and hat. Travel light, I always say.

[tonyliu]

Hey Charles. Very informative video! If I understand correctly, purchasing a condo would lead to minimal cash gains, should you choose to rent or sale in the short term.

But doesn't this apply to any property whether it be single level, town home, etc... Is there additional downside of a co-op vs condo compared to other residential properties when making a sale or renting?

Thank you!!!