There are several good co-op condos out there, usually in an older, low rise building, and commonly located in Rosedale and the Annex.
What exactly is a co-op condo you ask? and how does it differ from a typical condominium?
The 2 key differences: First it is much cheaper….the identical unit in a condominium building would be worth 40 to 50 per cent more!
Two… If you own a co-op you own shares in the building; if you own a condo, you have a deed.
A co-op apartment project is created and governed by its own incorporation documents, bylaws, rules and regulations, and the private contractual agreements among the corporation and its members or shareholders. By contrast, a condominium is a creature of statute and exists within the framework of the Condominium Act.
Since responsibility for payment of taxes and mortgage in a co-op is joint, if one owner goes into default, the other owners must make up the shortfall or risk losing their own equity. Yikes!
Financing a co-op is Ein wenig dieses Flairs springt auch auf das Casino- online casino spiele uber. more difficult and often requires at least a 30% downpayment.
In most co-op buildings, the board of directors approve the sale of the shares or assignment of the occupancy rights to new owners. This slows down the sale process, and significantly interferes with the freedom of a co-op owner to sell.
Hence, reselling a co-op is more difficult than selling a condominium, and the market takes these factors into consideration with lower values across the board.
On the plus side, a well-managed co-operative building can run just as smoothly and efficiently as any condominium, but the cost to be an owner is usually significantly less.
For the thousands of Torontonians who own co-ops, that is a major plus. So there you have it in a nut shell. Affordability is key with co-ops and that's what makes them so popular! Don't discount a co-op when you've narrowed your search down to condos.
Real Estate Q & A….Difference between a co-op, condo and freehold property
