Compare Your Options
When the time comes to change your housing, you have many choices - but not all of them are the best fit for you.
When maintaining a home becomes too tiresome or difficult, many people consider moving to an apartment to free them from those responsibilities. However, there are some downsides to renting you may not have considered, and other options that may suit your lifestyle better and allow you to gain more control over your financial investment.
| COOPERATIVE | CONDO / TOWNHOME | SINGLE FAMILY HOME | RENTAL APARTMENT | |
|---|---|---|---|---|
| FINANCING | Cooperative secures a long-term master mortgage for entire building: units, common areas, & land. Member does not apply for or assume personal liability for mortgage. | Owner(s) apply for & obtain mortgage for their unit & have personal liability for mortgage. | Owner(s) apply for & obtain mortgage for their home & have personal liability for mortgage. | Not applicable |
| PURCHASE | Members purchase a share in the Cooperative Corporation. Each unit in the building represents one share. | Buyer(s) complete real estate transaction. | Buyer(s) complete real estate transaction. | Not applicable |
| EQUITY | An established fixed equity formula is based on the value if the unit plus accumulated appreciation. | Market rate property - dependent on housing market conditions at time of resale. | Market rate property dependent on market conditions at time of resale. | Not applicable |
| CONTROL | Members retain control through democratic governance. Each unit has one vote, electing a board of directors, comprised of resident members. | Most often have a Homeowners Association &/or are governed by a board of directors elected by homeowners. | Not applicable | Management company makes all decisions. |
| OPERATIONS | Building operated under terms of required legal documents & oversight of member-elected board of directors. | May choose to be self-managed or hire a management company. | Not applicable | Management company makes all decisions. |
| MAINTENANCE | Monthly fee includes internal & external maintenance, individual home repairs, landscaping, snow removal, lawn care, appliances, & replacement. | Associations fees cover external maintenance. Homeowner is responsible for all internal maintenance, upkeep, & replacement costs. | Homeowner responsible for all maintenance & upkeep of home & property. | Management/owner responsible for maintenance. |
| COMMON AREAS | Community rooms such as party room, guest room, fitness center, craft room, clubroom, workshop, car wash station, etc. | Limited common area space (condos sometimes have central community room). | Not applicable. | Most senior rentals include community rooms & added services. |
| RESALE | Cooperative markets to waiting list & assists members with resale of their share (nominal transfer fee applies). Eliminates real estate commissions and closing costs. | Owner(s) sell home with help of realtor & typically pay real estate commission of 6-7% . | Owner(s) sell home with help of realtor & typically pay real estate commission of 6-7%. | Not applicable |
Preserve Your Assets
While no one really likes to talk about the subject, estate planning is an aspect you should consider when deciding between renting or owning a property. When you rent, you do not own the property and therefore have nothing to pass on to your family or heirs in the event of your death. In a cooperative, your financial investment can be transferred to your loved ones by reselling your share, with the money from the sale going into your estate. While a nominal transfer fee applies, there are no real estate commissions or closing costs to stress over during an already difficult time.
Cooperatives allow shareholders to build equity, utilize tax benefits that come with home ownership, personalize their units, and free them from the hassles of home maintenance!