Things to Consider When Buying a Coop

The pros and cons of buying a coop in new york city

There are many pros and cons to buying a co-op in NYC. 

On the plus side, you become a part of a community and often get lower rents than if you were to rent an apartment on your own. Co-ops also come with rules and regulations that you must agree to abide by when you purchase the unit. 

On the downside, buying a co-op can be long and complicated, and getting approved for a loan can be challenging. This blog post will explore the pros and cons of buying a co-op in NYC in more detail! 

Pros of Buying a Co-op in NYC

  1. You will be able to get more for your money. Co-ops are less expensive per square foot than condos, and they're more readily available. Maintenance and closing charges for co-ops are considerably lower than those for condo apartments.
  2. You will have more control over your living situation. When you invest in a cooperative, you become a member of a company that helps to maintain the property. As a result, you will have a voice in managing the structure and implementing any modifications. You'll also have more control over who lives in your communities.
  3. Architecture: Pre-war structures are prized for their architectural beauty. Many of the pre-war properties in New York City are cooperatives.
  4. Homeownership
  5. Hold their value

Cons of Buying a Co-op in NYC

  1. Upfront costs: Because of the downpayment and liquidity standards for co-ops, many people are being priced out. It's both a gift and a curse in today's climate when interest rates and home prices have risen rapidly.
  2. Inability to sublet. Many co-op boards frown upon subletting and will only allow it for short periods. They're by no means investor friendly, and your return on investment will be minimal.
  3. Lack of amenities. Before you buy a co-op, make sure you can afford the monthly maintenance fees. These fees go towards the upkeep of the building and can be pretty expensive.
  4. Appreciation: Compared to condos, co-ops increase in value much more slowly due to the limitations placed on buyers and the inability to sublet. This may seem a drawback at first glance, but it makes purchasing a coop apartment more affordable. However, we shouldn't expect the same level of appreciation that we've seen in other markets; on average, co-ops appreciate by only 1.7% annually. This is below historical inflation rates and lags far behind the S&P 500 index." I firmly believe that a primary residence should be considered an emotional investment rather than the purely financial one.
  5. Liquidity: The co-op board wants to guarantee that you will take care of the property and be a good neighbor. There are rules on financing, and the commission requires proof of being able to make mortgage and maintenance payments for up to 24 months when closing.


There are several factors to consider before buying a co-op apartment in NYC. First and foremost, remember that you will be buying into a community, and it’s important to make sure that the community is one that you feel comfortable with and can see yourself being a part of long-term. Secondly, be prepared to pay monthly maintenance fees in addition to your mortgage; these fees go towards the upkeep of the building and common areas. Finally, keep in mind that co-ops typically have more stringent rules and regulations than other types of housing, so be sure to review the bylaws carefully before making a purchase. 

By taking all of these factors into consideration, you can be sure to make the best decision for you and your family when buying a co-op in NYC. If you have any questions, please get in touch with us. We would be happy to help you through the process of buying a co-op thanks for reading!

Work With Michael

Michael has a deep understanding of real estate; but more than that, a genuine desire to help his client's reach their goals. He is passionate about gaining a deep understanding of the market and believes utilizing data to make better purchase and sales decision allows him to better serve his clients needs.
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