Advantages and Disadvantages of Cooperative Housing

Three things comes in Co-operative housing-

--  affordability, lower maintenance costs, co-operative board pays the mortgage

To put it in a nutshell “joint-ownership” that provides a better environment.

I would rather be attracted to such perks, rather than buying a property that’s going to cost most of my savings. On top of mortgage, I would’ve to keep with maintenance if tenancy involves.

It’s all neutral, but something is good about it. How good it’s to hold ownership without spending much! It’s nice to be a homeowner, while the burden isn’t going to be that heavy as in sole ownership.

Pros of cooperative housing

I don’t have to worry about making lesser than my dream figure. But, I could buy a three bed room unit within my pad at lower interest rates. Along with the builders and housing cooperative, I’m going to purchase the land for a cheaper price.

I’m not the one to shoulder the entire responsibilities – planning, construction, establishment, maintenance, security.

I don’t earn a fortune, so I cannot go ahead with a pack of expenses awaiting me – this happens when I rent out a property under sole ownership.

On top of that I’m not paying the mortgage on my own. Along with the other members of housing cooperative society, I’ll be paying lesser down payment and closure amount.

Tax rules aren’t too rigid. Cooperative board pays the mortgage amount; tax assessments and its perks vary from one state to another.

Safety, better environment and values of community add to it.

I’m going to pay certain maintenance charges every month.

Cons of cooperative housing

Re-sale value is ruled out. If one of the members wishes to get a big fat share out of selling their condo, it doesn’t happen.

When one of the board members is not committed to the operation anymore, then the entire things falls haywire.

Renovation of individual condo/units/houses wouldn’t happen without the approval of board. Also, securing loan for housing cooperative is complicated.

With no equity values or individual ownership involved it’s hard to seek loan abidance.

Paperwork and tax documents dating back to ages are required to join the board of any housing cooperative.

Pros and cons come into the picture, when you’ve got big plans.

Are you ready to be the holder of “fee title” with a bunch of property tax awaiting you? On top of that, what if you’ve got plans for a beautiful farm house in the future?

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