Are co-ops a good investment?

The main advantage of buying a co-op is that they are more affordable and cheaper to buy than a condo. This is one reason this type of housing is popular in cities with a high cost of living. What’s more is that you typically get better square footage for your money.

Are there co-ops in Chicago?

In Chicago, you will easily find co-op housing in the best parts of the city with the greatest views. Neighborhoods like Lakeview, Lincoln Park, Gold Coast, and Hyde Park boast incredible pre-War and Art Deco cooperative buildings.

Why are coops so cheap?

Co-ops tend to be cheaper per square foot. They typically offer buyers more control as an individual shareholder and often have lower closing costs. Property taxes often are lower for co-ops than condos.

Are co-ops better than condos?

Both have its pluses and minuses. Condos often cost more, but allow a greater degree of freedom and flexibility than co-ops, and an easier approval process. With co-ops you can save on closing costs, afford more square footage and have lesser monthly fees, but you may loose the flexibility that is offered by condos.

Is it difficult to sell a co-op?

Co-ops are governed by stricter rules than are condominiums. Buyers are subject to intense financial scrutiny when applying to buy into a co-op, making it more difficult to both buy and sell co-op shares, since a seller may invest time and resources to find a buyer, only to have the buyer rejected by the co-op board.

How do coops work in Chicago?

Cooperatives (Co-ops) Owners don’t actually have a property deed. Instead, buyers purchase shares in a non-profit corporation, which essentially entitles them to live in a unit on the property, and access common areas. A larger unit may require purchasing more shares, and vice versa.

How does Coop financing work?

To purchase shares in a co-op, each buyer takes out a “share loan” instead of a traditional mortgage. These loans operate much like mortgages, but in addition to the loan payments made to the lender, co-op residents are responsible for paying a pro-rata share of the common costs of running and maintaining the building.

How do I sell a co-op?

COOPERATIVE RULES FOR SELLING Most likely you will need to obtain board approval of the sale. This entails presenting a transaction to the board and asking the board to authorize the sale to your buyer. There is usually an application that must be completed by the buyer once the contract of sale is signed.