Co-op retirement condo

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splitatlantic
Posts: 40
Joined: Sun Dec 09, 2007 7:35 am

Co-op retirement condo

Post by splitatlantic » Thu Aug 15, 2019 2:58 pm

Cooperative Living

What has been your experience in buying a condo unit through a cooperative retirement living structure? I've thought it would be difficult to sell because you have to sell it back through the co-op. I'm thinking this is a negative. I'd appreciate your comments.

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Wiggums
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Joined: Thu Jan 31, 2019 8:02 am

Re: Co-op retirement condo

Post by Wiggums » Thu Aug 15, 2019 3:08 pm

I’ve never owned a co-op myself, but I would think the negatives are: co ops that I know of, have more rules over the property and have to approve the buyer when you sell.

Edited to correct error
Last edited by Wiggums on Thu Aug 15, 2019 4:50 pm, edited 1 time in total.

7eight9
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Joined: Fri May 17, 2019 7:11 pm

Re: Co-op retirement condo

Post by 7eight9 » Thu Aug 15, 2019 3:18 pm

I guess it would depend on the co-op but at least in the New York City area I see plenty that are for sale by owner (FSBO) - not even listed with a broker.
Example --- https://www.zillow.com/homedetails/227- ... 7388_zpid/
I guess it all could be much worse. | They could be warming up my hearse.

Topic Author
splitatlantic
Posts: 40
Joined: Sun Dec 09, 2007 7:35 am

Re: Co-op retirement condo

Post by splitatlantic » Thu Aug 15, 2019 4:08 pm

You do buy a particular unit. But a good point about trying to sell. Everything has to go through the co-op when selling. Very restrictive but the number of retirees is growing.

7eight9
Posts: 301
Joined: Fri May 17, 2019 7:11 pm

Re: Co-op retirement condo

Post by 7eight9 » Thu Aug 15, 2019 5:22 pm

splitatlantic wrote:
Thu Aug 15, 2019 4:08 pm
You do buy a particular unit. But a good point about trying to sell. Everything has to go through the co-op when selling. Very restrictive but the number of retirees is growing.
When you said Everything has to go through the co-op when selling. I was taking it to mean that you thought the co-op serves as the broker for all sales. Which wouldn't be true. If you meant that the co-op board needs to approve all sales then you are correct.

The New York Times a few years ago had a good article titled Co-op vs. Condo: The Differences Are Narrowing. It highlights the differences between the two forms of ownership.
Article --- https://www.nytimes.com/2012/10/07/real ... condo.html
I guess it all could be much worse. | They could be warming up my hearse.

StealthRabbit
Posts: 333
Joined: Sat Jun 13, 2009 1:25 am

Re: Co-op retirement condo

Post by StealthRabbit » Thu Aug 15, 2019 5:31 pm

USA is not very experienced in Co-op housing, but they exist and are usually quite successful.
Study up on co-ops as there are several types (including equity restricted and market rate)

I am a co-op fan and would like to find or create a senior cottage housing co-op in a rural area.

just a couple resources...
http://seniorcoops.org/
https://coophousing.org/resources/livin ... operative/
https://www.seniorliving.org/cooperative-housing/

flarf
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Joined: Tue Sep 25, 2018 2:05 pm

Re: Co-op retirement condo

Post by flarf » Thu Aug 15, 2019 6:23 pm

I've owned a couple of co-op apartments in NYC, where they're very common.

You could view the co-op board involvement in approving sales transactions as either a positive or a negative. Presumably they are screening potential buyers to ensure they have sufficient financial resources to maintain stability in the building, which is a positive. On the other hand, a seller may be frustrated at the high bar imposed on the pool of potential buyers.

Having served on a co-op board for several years, we only failed to approve one buyer, and that was because she couldn't fully document her claimed income. Otherwise it's not a much higher bar than securing a mortgage (aside from the down payment; we required 25%).

That said, I would be extremely leery of buying into a co-op in an area where they are not common, and would only do so if I was planning on staying for a very long time and was being compensated for the increased transactional friction relative to an ordinary condo.

7eight9
Posts: 301
Joined: Fri May 17, 2019 7:11 pm

Re: Co-op retirement condo

Post by 7eight9 » Thu Aug 15, 2019 6:32 pm

flarf wrote:
Thu Aug 15, 2019 6:23 pm
...
Having served on a co-op board for several years, we only failed to approve one buyer, and that was because she couldn't fully document her claimed income. Otherwise it's not a much higher bar than securing a mortgage (aside from the down payment; we required 25%).
...
It isn't always income or down payment that keeps one from buying a co-op. :happy Rejection of this nature probably shouldn't concern the OP.

NYT article titled San Remo Co-op Board Rejects Madonna's Bid --- https://www.nytimes.com/1985/07/19/nyre ... s-bid.html
I guess it all could be much worse. | They could be warming up my hearse.

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Steelersfan
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Re: Co-op retirement condo

Post by Steelersfan » Thu Aug 15, 2019 7:01 pm

Our city has a mix of condos and co-ops. I suppose it can depend on the board of the co-op, but they both sell equally well here.

In real estate, like many other things, there are significant differences between states and even areas within some states, so generalizations aren't very useful. Laws differ, history matters, even social norms vary.

It would help if the OP told us where he's looking to buy.

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