Are NYC co-ops a good investment?

With double digit annual property value gains like that, it comes to no surprise that coops have made an excellent investment for those that have bought into them and continue to be a great opportunity for those looking to enter the market. For more Manhattan real estate market insights, read the Elliman Report.

Are co-ops worth buying?

The main advantage of buying a co-op is that they are more affordable and cheaper to buy than a condo. This is one reason this type of housing is popular in cities with a high cost of living. What’s more is that you typically get better square footage for your money.

Is buying a co-op better than renting?

Co-ops are often less expensive than rental apartments because they operate on an at-cost basis, collecting money from residents to pay outstanding bills. In areas where the cost of living is high, such as New York City, co-ops may be an attractive option from a financial perspective.

Why are co-op maintenance fees so high?

Fees. Co-op fees tend to be higher than condo fees because co-ops roll all the monthly expenses into one bill, including gas, water and property tax.

Can you sublet a coop in NYC?

The majority of co-op buyers in New York City plan to use the apartment as their primary residence and don’t sublet. Co-ops are generally not viewed as attractive rental properties for investment buyers because the sublet policies restrict the ability of shareholders to sublet the unit.

Why are co-op fees so high?

Co-op fees tend to be higher than condo fees because co-ops roll all the monthly expenses into one bill, including gas, water and property tax. For example, if a co-op shareholder owns 2 percent of the property, they will pay 2 percent of the electric bill.

Can you remodel a coop?

When renovating your Co-Op you will enter a contractual agreement with your building’s Co-Op board known as an alteration agreement. You will sign your alteration agreement before starting the renovation. The board will often have their own architect review the proposed work before issuing an approval to proceed.

Do coops increase in value?

Appreciation. Market rate co-ops tend to not rise in value as rapidly as condos. Low-income co-ops (which have lower purchase prices and income restrictions) also appreciate at a limited rate.