October 31, 2006
Long Island Co-ops
To better understand the various real estate options available throughout Long Island, you might want to take a look at the Long Island co-ops in the area. When living in a cooperative environment, you do not become the owner of your particular apartment, but instead make your mark within the corporation that owns your building or piece of real estate. Purchasing shares associated with a corporation, which is directly connected to your living space, accomplishes this cooperative environment.
As a shareowner of a Long Island co-op, you are presented with a long-term proprietary lease that is attached to your apartment. Through the pool of co-op money, the mortgage loan tacked onto the building is paid. There are also other details pertaining to the payment of bills associated with a co-op. Within a cooperative, building residents are responsible for the payment of property taxes, mortgage expenses, fuel charges, payroll, as well as building operating costs. These are all expenses shared throughout the shareowners of the co-op. Depending on the arrangement, some of these fees may or may not be tax deductible.
Shareowners will elect a spokesperson to represent them and their building. Together, a board of directors is formed that follows a set of corporation by-laws. The board of directors is meant to enforce the rights and responsibilities of the apartment owners that are written out in a lease connected to the building.
Why Go Co-Op?
On Long Island, co-ops and condominiums are becoming increasingly popular as more and more people wish to avoid the everyday and weekly maintenance of owning a home. A Co-ops is just the thing for those who dread cutting the grass, shoveling snow and making roof repairs. Others enjoy the tax breaks that they receive, as well as the potential for an appreciation of the property they have interest in.
Co-op living easy living. This is because all of the external and maintenance worries associated with a residence are eliminated through cooperative living. Also, while the corporation owns the common areas of the building, such as the pool or hallways, your share (apartment) may be leased as you see fit. The property taxes of a co-op also run a bit lower than if you lived in a condominium on Long Island.
Any Disadvantages?
When buying into a Long Island co-op, you assume a certain level of risk. Since you are pooling money into an investment associated with a corporation, you will be affected when things go wrong for them. Let’s say the corporation was to go bankrupt. All interested parties, including shareholders will feel this effect. Also, when it comes to home equity loans or a line of credit, co-op owners will not be able to receive this type of monetary relief. Plus, the level of dependency that shareowners rely on through the cooperation of fellow tenants may be too much for some.
The comparison between a condo and co-op are often made when one is looking for a maintenance-free living space. Whereas condominiums can dictate the type of people that can live in their surroundings, a co-op is bound to a different set of laws. Since the federal fair housing laws apply to co-ops, no kind of discrimination is tolerated when it comes to potential shareowners. The only factors affecting a potential buyer include financial resources and having a criminal past.
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