REAL ESTATE
Lisa Lippman Don’t Overlook the Value of NYC Co-ops and Location Location Location !!! A DV I C E F R O M # 1 B R OW N H A R R I S S T E V E N S AG E N T L I S A L I P P M A N
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n real estate headlines, condo-rich new developments get all the love. After all, these shiny structures consistently attract wealthy and celebrity buyers, defy architectural norms and forever change the NYC skyline. With fabulous amenities, compelling financial offerings, and fresh aesthetics, these buildings are built for buzz. However, when it comes to holding value and superlative location, co-ops give their newer, flashier competitors a run for their money. Before I jump into why cooperatives should be on your radar, let’s explore the basics. New York City’s housing inventory is roughly 75% co-ops, even though more condominiums are typically on the market at any given time. When purchasing a condo, your apartment belongs to you. When you buy a co-op, you are buying shares in a corporation - your building. Buying shares enables you to occupy a unit in the co-op building. When you close on a condo, you receive a deed; when you close on a co-op, you’ll receive a proprietary lease. In condos, you’ll pay monthly common charges and taxes, while in cooperatives you’ll pay monthly maintenance fees. Of course, buying into a co-op requires that you obtain board approval which is a lengthy and often complex process,
but it’s worth it if you meet the financial requirements and are not in a rush to close. An experienced agent will help you through the entire process. Because cooperatives are structured as corporations and decisions are made by board members, they are able to retain their value much more consistently than condos. Overall, co-ops are less expensive than condominiums and occupy some of the greatest real estate in New York City, particularly across Central Park West and Fifth Avenue. Think of the Dakota, The San Remo, The Beresford, and 993 Fifth among others -- all of these buildings offer such a unique New York lifestyle and location that they are unphased by economic downturns. In contrast, new developments are often in less desirable locations, their value is tied to market volatility, and they cost a lot more. According to the most recent Brown Harris Stevens Manhattan market report, the average co-op resale price was $1.3M; in new condos, the average sale price was $2.9M! Don’t get me wrong - new developments offer a certain way of life that appeals to many people, but I think it’s time serious buyers take the value proposition of co-ops seriously. After all, co-ops offer iconic architecture, history, unbeatable location, compelling prices, and some of the most prized park-side views in the world. Financial requirements may be more stringent, and some boards are more notorious than others, but co-ops are safe investments that stand the test of time and make for incredible homes. P bhsusa.com/real-estate-agent/lisa-lippman
