The main difference between the two
Co-op and condo buildings look quite similar and due to this very reason, it is hard to ascertain the difference. But there is one subtle difference and it is in the terms of ownership. A co-op which is short for a cooperative is operated by a non-profit corporation that is managed by the residents of the building. The title is named under the jointly owned corporation and the residents purchase the proprietary leases from the very corporation. The purchase of the lease gives the residents the right to the common areas of the building and the access to the individual units as well. On the other hand, in a condo the residents own their own units and have an ownership in the common areas. When you buy a home in a condo you are buying a piece of real property.
Sort out your financing options seriously
This aspect is more about determining how much you will invest in order to finance via mortgage. Co-ops are usually pickier than the condos when it comes to the very aspect and many need low loan to value or LTV ratios. The LTV is the money you will require to borrow which is then further divided by the total cost of the property. The more money you put down, the lower the LTV ratio. You require at least 75 percent or less in the case of co-ops. On the other hand, in the condos, it is more like usual home purchases.
Keep your future plans in mind
If you are just living for a couple of years in your house, Galveston commercial real estate recommends that you should buy a condo. The advantage of living in a co-op is that the residents are quite strict over the one who lives there. When you buy a co-op, you have to go through a series of interviews and stringent financial requirements. It is good for the current residents, but makes the process slow for the prospective. It also gives you less control over the place.
When it comes to selling a condo, the biggest con is to find a suitable buyer. So, if you are planning to live for a short time, you should opt for a condo because it provides more flexibility when compared to selling off a co-op.