There are three categories of apartments – condos (condominiums), co-ops (cooperatives) and condops.
For investment purposes, a condo is recommended because of higher appreciation potential and flexibility in renting out. Condos are usually newer buildings and almost all of new constructions are condos.
Co-ops are buildings whereby the apartment buyer buys shares of the building, not the deed. Co-op Boards govern co-op buildings and every purchaser must pass their approval and any renovations usually need their approval as well. More importantly, co-ops usually restrict ability to rent out. For example, many co-ops only allow renting 2 years out of every 5 years.
The value of a condo, on a per-square-foot basis, is about 20 to 30 percent higher than that of a co-op. In addition, the appreciation potential and demand for condos are higher as well.
Condop is, for an easy understanding, a co-op with condo rules. There is no board approval. Prices are usually in between condos and co-ops and many condops allow investors to rent out immediately after purchase, while some allow renting out after one year of ownership.
According to a survey of New York City apartment buildings commissioned by the Council of New York Cooperatives and Condominiums in 2005, the city has roughly 6,700 co-op buildings, 2,300 condos and fewer than 300 condops.
All information is from sources deemed reliable but is subject to errors, omissions, changes in price, prior sale or withdrawal without notice. No representation is made as to the accuracy of any description.