If you are done with budgeting for your home, now you need to understand the difference between a condo and a co-op.
These housing types are usually confused and, to be fair, they may look quite similar at first glance.
The main difference between a condo and a co-op is how the ownership of each property works.
A condo is a private residence owned by an individual or family in a building or community, where residents share common areas with other condo owners.
A condo is considered real estate. When you buy a condo, you only own the interior of your property. The condo association owns the exterior of your condo.
Unlike a condo, a co-op apartment is not considered real estate. When you buy into a co-operative, the property belongs to everyone living within it.
A housing cooperative is also contained within a larger structure, its residents do not actually have their own living space and have only ownership leases that entitle them to live there.
The corporation owns every part of the house, including the interior, exterior and common spaces. Co-ops are popular in large cities where the cost of living is high, such as New York City.