No matter if you are a first-time homebuyer or have experience in investing in real estate, you likely recognize the financial benefits of owning versus renting in the Miami-Dade region. Owning a condominium or cooperative offers many of the same amenities and conveniences as renting an apartment unit in an established complex, but also gives you an ownership stake in the property. However, there are several differences between owning a condominium and cooperative that are worth taking into account before making any kind of purchase.
The Washington Post explains that many people don’t know that there are differences between owning a cooperative and a condominium. When you purchase a condo, you not only own a portion of the complex’s common areas but you own the unit as well. As a co-op resident, however, you own a share of the entire apartment building, but do not actually own the apartment unit itself.
In cases involving cooperative units, the residents are shareholders who comprise the co-op association and collectively own the entire complex. Consequently, it is you and the other members of your co-op association who manage and handle the daily operations of the complex. You and your fellow co-op association members are also responsible for approving perspective buyers. Purchasing a co-op is often characterized as being more difficult than buying a condo because you have to meet the association’s financial criteria, as well as agree to the organization’s rules and regulations. Owning a condominium does not typically involve as many stipulations, and often also allows you to rent out your unit if you wish.