When looking for a home in the city, you may consider staying in a condominium or buying into a housing cooperative. These real estate options share some similarities—they’re usually multi-units, and you have to follow policies and contribute to building expenses. However, condos and co-ops have critical differences you must understand before buying either.

What to Consider When Choosing Between a Condo & Co-Op

1. Type of Ownership

Condominiums are real estate properties, meaning the buyers own their residence and part of the shared facilities, such as swimming pools, elevators, and gyms. In a co-op, you own shares in a corporation instead of a distinct unit. With this option, shareholders can live in dwelling units following a lease granted by the corporation that’s holding the property title.

2. Cost to Purchase

Although co-ops have higher down payments, their price per square foot is lower than condos. Members of a co-op also split other expenses, such as facility installations, equipment repair and maintenance, and security.

Buying a condo may imply higher closing costs because you have to pay for title insurance and mortgage tax. However, they’re easier to finance because their fees are much lower. Condos also offer flexible payment options if you don’t have enough cash for a down payment.

3. Board Approvals

Both condos and co-ops have boards that handle decision making. In condos, boards are responsible for setting the rules, while buyers have a voice in matters concerning the building. For example, the board may still need dwellers’ approval before installing a new pool. Additionally, condos are generally easier to purchase. Since the owners are responsible for their respective units, their financial status isn’t the board’s concern.

Meanwhile, co-op boards are more powerful in the sense that they can approve or reject prospective buyers. They’ll review your finances, which requires a lot of paperwork and an attorney’s assistance.

Looking for a place to call home is easier if you have a knowledgeable property management team to support you. Let the experienced real estate agents of SC Realty in Honolulu, HI, help you find a housing option that suits your needs and budget. View their listings online, or call (808) 591-6277 to schedule an appointment with an agent.