| |
Cooperative |
Rental |
Single Family |
Condominium |
| Ownership |
The residents are shareholders in a corporation that owns
the property. Owning a share
entitles you to to
occupy a unit.
|
Tenants own
nothing. On
expiration of
lease, tenants
may be forced
vacate.
|
Owners acquire
individual title to
their dwellings
and yard.
|
Unit "airspace"
owned by
individual, plus an
undivided share of
common
elements.
|
| Monthly Cost |
Members pay the Co-op for their share of the actual operating
cost,
building mortgage,
and real estate
taxes, based on
the nonprofit
operation of entire
community.
|
Tenants pay
their rent specified in lease.
|
Owner must make his or her purchases whatever is needed, often at higher
retail costs. Owner makes mortgage and tax payments to lender.
|
Same as cooperative,except mortgage payments and taxes are
paid directly to the lender. |
| Move-in Cost |
New members buy their share in the cooperative and also pay
their first monthly charge in advance. |
Usually one months rent is paid as a security deposit, plus
the first months rent. |
Purchaser must buy the property, usually with a mortgage with
a down payment of at least 5% and closing costs of 3% or more. |
Same as single family, plus first month's condo fee and often
a "contribution to capital" of 1-2 months fee. |
| Community Control |
Co-op resident members elect their board of directors, which
decides all policy I matters. The Board usually sets up several committees
to help run the community. |
Renters usually have no voice at all
in establishing
and maintaining community
standards.
|
Individual owners have no jurisdiction over their neighbors.
|
Condo owners, like cooperatives elect a board of directors. |
| Community Service |
Co-ops provide a
natural base for
service and activity desired by its
members.
|
Provided at discretion of
landlords.
|
On your own. |
Condos similar to co-ops, unless limited by state law. |
| Federal Tax Benefits to Individuals |
Your share of
mortgage interest
and real estate
taxes are deductible on
personal income
tax return.
|
No benefit. |
Mortgage interest and real estate taxes are
deductible on personal income
tax return. |
Mortgage interest and real estate taxes are deductible on
personal income tax return. |