Now is a great time to buy real estate on Long Island. When considering real estate, most people think of buying a home/condo or renting an apartment. However, one of the best values in real estate today is a co-op. Although much of Long Island real estate has managed to depreciate less than other areas in the country, LI stands an excellent chance to appreciate faster as the economy recovers.
A co-op (or cooperative) is different from owning a condo and can be less expensive than renting. A co-op is a building owned by a corporation and instead of renting or buying a unit, a person would own shares in the building. The corporation holds the title to the building. We enjoy the many benefits of living on the Long Island (such as quality schools, beautiful beaches, great fishing and boating, convenient shopping, and all in a spacious and uncrowded environment) but can find it harder and harder to stay here. Additionally, Long Islanders are savvy business minded individuals who realize that no matter the state of the economy, owning can be far more beneficial than renting. Co-op living is a great alternative for more cost-effective living on Long Island.
As an owner of a co-op, you own shares of your building. This provides the owner tremendous tax advantages. Owners will have the usual tax deduction associated with owning a mortgage. In addition, co-op owners can deduct, in some cases, up to 70% of the total annual maintenance fee off their own income tax and thereby reducing their income tax liability. Maintenance fees usually carry the building’s mortgage, if any, the building’s real estate taxes, and common charges. Cooperative living offers a great lifestyle free of yard work, shoveling snow, costly home repairs, and general maintenance. Co-ops can be a great alternative for those considering downsizing or those who are interested in convenient living.
Most first-time home buyers programs and star programs can be used for ownership of a co-op. Co-ops start around the $150,000.00. Most are updated and modern. You will probably be able to find one suitable for you and your needs.