Let’s figure out what the notion co-op insurance is. What is it? And why do so many people search information about this type of insurance – NYC Co-op Insurance ?
Customer of co-op insurance in New York in reality buys only shares of company which possesses territory and house and signs the rent contract. Cooperative owners are limited in their rights. They can’t sell or hire out property without official permission of company which is an owner of cooperative. Cooperative regulations can add some extra demands to cooperative members, for example, the prohibition for living with domestic animals etc. Co-op apartments selling is also more complicated and needs more time. Form the other side, co-op real estate is a little bit cheaper than in condominium. It’s worth understanding that a big part of apartments in New York is cooperative.
One of the main advantages of buying co-op apartments is that usually the demands of housing cooperative society are more strict than bank. So, the risk of bankruptcy or default while buying such real estate is minimum.
It should be mentioned that cooperative was firstly established as a private club. If buyer wants to purchase the co-op apartment, he have to:
- 1) Give the full information about your income
- 2) You have to be interviewed by municipal council
In order to become a resident of Co-operative, you should complete a range of demands: you should have no previous conviction and necessary credit level (not less than 650). Also you shouldn’t have any other dwelling and have an appropriate income for every type of apartment. After this you will be entered on a waiting list. As a result you will be able to “buy” the apartment for the price which is lower than market price. But actually, it’s not a bargain because you put the deposit for the right to rent an apartment and you can’t to dispose of it like your own property. You will not be able to sell it. If you want to move from this apartment, you will get your deposit back. Every month you should pay for public utilities.
The company will receive no income. For example, the price of two-bedroom apartment is $13.500, monthly rent is $594 plus electricity. You should have the income which is not less than $23.160 and not more than $58.826 per year. No more than 2 people can live in two-bedroom apartment.
All terms mentioned above are the perfect filter for the future residents. Such apartments are aimed at middle class.
Peculiarity of NYC Co-op Insurance
If you are an owner of co-op real estate or you are planning to buy it, you should know that co-op insurance is spread only for territories of public usage of common properties. Though you aren’t the owner of this apartment and only have shares for ability to use it, all repair expenses inside the apartment you pay by your own.
That’s why NYC Co-op Insurance is so important. Thanks to this type of insurance you save your property which is inside of the apartment.