|
|
|
 |
|
|
|
What is a Housing Cooperative?
Housing cooperatives are a form of multifamily homeownership. Shareholders or tenants join together to form a not-for-profit cooperative
corporation which owns the building in which they live.
Residents buy a share (membership) in the co-op, but the cooperative owns the building, land, and any common areas. Residents are entitled
to live in a housing unit as part of their membership benefits. Members pay a fixed amount each month that covers basic expenses, including
mortgage, property taxes, and more. As owners, members exercise control over their housing situation by electing
a board of directors made up of other residents. This varies from a condominium
or town home, where residents each own their individual housing units
and are responsible for their own mortgage.
What are the Advantages?
Ownership: Members actually own the cooperative through their share ownership of the not-for-profit cooperative corporation; there is
no equity investor or landlord.
Control: Residents govern the cooperative with assistance from the managing agent.
Cost of Operation: Occupancy charges are equal to only the actual cost of owning and operating the property. In a rental, rent
generally goes up faster than actual costs because most landlords are in business to make a profit.
Individuality: Initial members are able to customize their dwelling units, including a choice of floor coverings, cabinet colors,
and various structural changes.
Homeowner Tax Advantages: Mortgage interest and real estate taxes are tax deductible in a housing cooperative.
Equity Growth Potential: In a Realife Cooperative, members earn limited equity on their unit based on the amount of time they
live in their home. The earning of limited equity keeps it affordable for the first members and future members.
Overall Value: Expenses in a cooperative are spread across the entire membership proportionately, making the cost of
living generally lower than a comparable single-family home.
Other Questions?
Then make sure to consult the F.A.Q. If you still have any questions, don't hesitate to contact us. Contact information
can be found here.
|
| | |
Three Steps to Your
Cooperative Home
|
|
|
|
