If you are weighing the advantages and disadvantages of the types of homes available to you in Miami, Florida, how the purchase affects your economic status may be one of the primary considerations. Real estate purchases are investments with potentially significant expenses related to maintaining value. Buying into a housing cooperative necessarily includes expenses, too, but in many ways this option provides a number of unique advantages.
The National Association of Housing Cooperatives explains that owning a share of the cooperative corporation is not the same as owning real property. But, you may still be able to claim deductions on your personal income taxes as if you are a homeowner. This typically includes your share of the cooperative’s mortgage interest and real estate taxes. The costs associated with purchasing real estate such as closing costs and down payment are often much lower with a cooperative. Not only that, members have the incentive and authority to keep costs low.
When you buy into a housing cooperative, you do not forfeit the ability to accumulate equity. Limited-equity cooperatives maintain lower costs for new members by placing some limitations on equity accumulation. A limited-equity cooperative also may be available to you even if you have been told that your income is too low to allow you to qualify for a mortgage. This is due to the fact that the mortgage is held by the company rather than the individual owners. This information about housing cooperatives is provided for your education, but it should not be considered legal advice.
