What are the benefits of owning a co-op apartment?
Co-op unit owners enjoy all the benefits of homeownership plus more. As a homeowner, you can take advantage of deductible mortgage interest and property taxes – both on the underlying mortgage and your individual share loan. You enjoy the same shelter from capital gains taxes on sale. You build equity as your co-op apartment’s value increases and your loan is paid down. And, you typically enjoy fewer closing costs than for a single-family home or a condominium. Co-op ownership offers greater financial flexibility as well. Since the co-op corporation owns the land and buildings as a whole, the cooperative can mortgage the property as a whole (the underlying mortgage). Unit owners have no personal liability for the underlying mortgage. This means when faced with large-scale improvement projects such as putting on a new roof, replacing windows or installing a new elevator, the corporation has access to competitively priced long-term debt. Return to Top What is a condo or single-family mor
