Your monthly house costs vs. coop maintenance, better opton?

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amother

Cerulean

Thu, Apr 04 2019, 5:21 am

I'm looking into if its better to buys coop and pay monthly maintenance fees or buy a house and pay monthly costs like heat, repairs, gas, electric etc...

IM NIT TALKNG ABOUT MONTHLY MORTGAGES. I know my mortgage will be higher if I buy a house bec its more expensive.

But, I'm talking about a small (around) 2000 square foot 3 bedroom house vs a small coop.

To explain, what are your monthly fees after paying your mortgage, actually I would like to also know how much you spend on necessary house repairs per year.

The reason I'm asking is bec. I read a lot of posts here warning about unexpected repairs....such that I'm trying to figure out after paying off a mortgage will I be better off paying monthly maintenance for a coop OR PAYING MONTHLY COSTS OF A HOUSE AND INCLUDE REPAIR COSTS.

I always thought that a small house wont need constant expensive repairs year after year. And, yes every house is different but if its inspected and found to be okay, I thought that usually a roof, boiler etc...lasts for many yrs.

But, I'm not sure bec I've never lived in a house.

I also don't know how much it costs for electric/heat/ac costs per month for a small 2000 square foot house in nyc.

I know with cars when I bought old cars, I ended up paying so much to fix things each year, I could've just leased with all that I spent on repairs.

I think even old houses(I'm talking about an old house), would not need expensive repairs each year,but maybe I'm wrong, so I posted here since I want to make a good financial decision based on others experiences. (please note that maintenance for coop means they major things like roof/boiler/sewege back ups....)

ETA: For example, If the coop is charging $1100 per month for maintenance and if after 30 yrs the mortgage is paid, ill still be paying 1100 per month(maintenance can increase) .IM TALKINGABOUT A WELL MANAGEDCOOP WHICH TRIES NOT TO INCREASE MAINTENANCE(they increased only once in last 9 yrs...only 2%) WITH NO BOARD APPROVAL NEEDED. So if I buy a 2000 sq. Ft house, and if I pay the mortgage off after 30 yrs, will the yearly repairs and monthly water/electric/heat/taxes....end up to be around 1100 per month or will it be less.

amother

Royalblue

Thu, Apr 04 2019, 5:42 am

I can't speak to exact numbers, since my experience living in a co-op is growing up in one, so I don't know exactly what it cost my parents. But what I can tell you (now that I live in a house) is that money aside, those maintenance fees take a lot off your plate. Yes, there always is something coming up. Something plumbing, something electric, something structural, outdoor care, etc. In a co-op (or condo, for that matter) that is not on your head. All you have to do is call maintenance. When you have a plumbing issue in a house, you have to find a plumber (and shop around--who's good, who's reasonable etc). You don't have to do any of that in a building. So really the question is, how much is having all that stuff off your plate worth to you? Is it worth those fees?

amother

Silver

Thu, Apr 04 2019, 7:56 am

We looked into it and went with the coop- it was well priced and in an area where it’s value keeps rising. It was new.

It’s just a calculation that iyh we’ll be able to live here for a long time without surprise expenses cropping up etc. taxes are less. Gas/ electric is less. Everything works perfectly and the minor issues we had were not our headache.

The fees are less than paying for snow shoveling and basic yard maintance etc..

amother

Cerulean

Thu, Apr 04 2019, 8:32 am

amother wrote:

Thanks for responding. Do u mind sharing how big the coop u are buying is? The issue here is also space bec. Besides for financial, if its a matter of a few hundred more per month for more space, we will decide if its worth it. Some ppl would rather live in a smaller space and have all the plumbing, repairs....done for them, and others have no choice but to buy a coop bec. They can't afford a house and need to stay in ny. But, some places have larger coops while others only have up to 2 bedrooms which are small.
So, it would help if you could share how big the coop is. Thanks.

amother

Cerulean

Thu, Apr 04 2019, 8:38 am

amother wrote:

Thanks so much for responding. Would u mind sharing how big the coop was? You are correct that looking for a plumber, electrician, roofer etc...to fix a house is not easy and having the coop take care of it is an advantage. However, I am also interested in seeing if its worth it to buy the house with a little more space than the coop if the house will cost a lot for maintenance. Im also comparing to see how much more space will I get in the house and how much more that extra space will cost me per month/ year.

amother

Seafoam

Thu, Apr 04 2019, 8:39 am

I don't think that your comparison is accurate. The co-op fee isn't equivalent to home repairs. It includes building taxes, shoveling, and things like that. But even factoring that in, its going to be higher than anticipated home repair costs because it also covers people cleaning the hallways and taking the trash and all sorts of other things.

OTOH, similar sized co-ops are cheaper than houses.

amother

Lime

Thu, Apr 04 2019, 8:53 am

Keep in mind the fees can always go up in coops and assessments are made when catastrophies happen.
It really isn’t a good comparison- bc they are both totally different.. it really can’t come down to “which is more expensive” bc a house can be more or a coop can be more depending on circumstances.

Last edited by amother on Thu, Jun 04 2020, 5:44 am; edited 1 time in total

thunderstorm

Thu, Apr 04 2019, 8:57 am

My mothers maintenance coop Fees doubled over the years.
She also had a leak and the ceilings got ruined. It's been a fight over who was responsible to pay for it. But my mother chose to sell her house that was falling apart so that she didn't have the headache of maintenance. But she downsized, big time. She needed to do many repairs within the apartment itself that is not covered by maintenance.

Last edited by thunderstorm on Thu, Apr 04 2019, 9:13 am; edited 1 time in total

amother

Cerulean

Thu, Apr 04 2019, 8:58 am

amother wrote:

Thanks for responding. But, I'm comparing the actual monthly or yearly costs of water/heat/ac/electricity and any house repairs to paying lets say 1100 per month for maintenance fees which includes garbage/shoveling/waterfees/taxes/roof/boiler/sewage repairs...

I'm comparing the total average yearly/monthly expenses of a coop vs a 2000 sq. Ft house(not including mortgage). I'm not comparing what each price pays for. What I mean is for a coop, you get services and less space. For a house, you get more space and have to pay for repairs and everything yourself(with no services done for you). Yes, that's obvious bec. That's the difference between a house and coop. But, now that we know that information, I'm trying to anticipate what housing costs will be based on others experiences in 2000sq ft home. I already know what to expect for the coop prices because its already "set in stone".

Amarante

Thu, Apr 04 2019, 9:06 am

It's six of one and half dozen of the other in terms of making a solely economic decision.

If you are a fiscally prudent person, you put aside money that you might have paid the coop and you have that sum for necessary repairs. Generally major house stuff like roofs, HVAC systems all have lifespans that can be predicted - especially if a reliable housing inspector checks your roof, your furnace, the air etc. Of course there might be surprises like a burst pipe but that is why you have put aside money each month and so when the inevitable happens you can pay for it.

Also - depending on what the issue is, you are still reliable for many household expenses. In general you are responsible for everything within the apartment so appliances are your expense and generally ordinary plumbing repairs as well although that to some extent depends on your building in terms of how they treat something like a stopped toilet - because the cause can be from something you did or can be a problem in the main pipes.

Coops/condos are nice if they are large and well managed because you have staff so it can be an easier lifestyle. You don't have to worry about shoveling snow for example.

On the other hand, you are at the mercy of the Board of Directors and so are dependent on their decisions in terms of how money is spent. Many people don't take the time to really consider whether a building is well run - is the budget realistic or have they been deferring maintenance to keep monthly charges down.

Also - and this depends on the location - single family homes are seen by some as better investments. Keep in mind that a coop controls who you can sell to because all potential owners need to be approved by the Board - and the approval process can be quite rigorous depending on the Board. A condo doesn't have the same sale restrictions - outside of NYC, most multifamily ownership are condos and even in NYC, condos appear to be gaining in terms of new builds.

amother

Cerulean

Thu, Apr 04 2019, 10:14 am

Thanks everyone for responding. I'm asking for what ppl here who own a home around 2000 square feet, pay per month for electric/heat/water and yearly home repairs.

Regarding coops, I did my research and know of a well managed coop which tries not to increase the maintenance fee(was not increased for 9 yrs and Only 2% increased). There is also no board approval. So, thanks for all info on coops and what you think. But, I'm asking about possible realistic costs of a home. I know about the costs of a coop.

amother

Cerulean

Thu, Apr 04 2019, 10:24 am

Amarante wrote:

Thanks so much for this. You are correct and I did a lot of research and bh found a well managed coop with no board approval. I also looked into condos but when I compared the
Same exact size coop to condo, the condo was more than double the price in which case, I may as well buy a bigger house for that price. So, now I'm looking into what a house entails I know it costs more and ill be getting a little more square footage, but I dont know how much everything costs once mortgage is paid off which is why I wrote this. I've lived in small apartments and know costs and know that landlords don't fix things and don't want to give you new refrigerators...but regarding a house, I always thought once mortgage is paid, besides taxes and minor repairs,its cheaper than coop monthly fees, until ppl here cautioned a woman she needs to save a lot for house repairs....so I'm asking specifically about house costs besides mortgage.

amother

Ruby

Thu, Apr 04 2019, 10:55 am

Regular home expenses:
Leaf cleanup
Grass and landscaping
Snow shoveling

All can be done yourself to save money.

Air conditioner filters - minimal

Big ticket items - boiler, roof, furnace and ac should last for years. If you buy a not new house they will all go in a few years but it is impossible to say for how long.

amother

Cerulean

Thu, Apr 04 2019, 12:33 pm

amother wrote:

Thanks for responding about houses. So are you saying that a house shouldn't be that much each year fir repairs? Are you saying that big ticket items would be like once after many yrs ???

amother

Silver

Thu, Apr 04 2019, 1:56 pm

amother wrote:

Thanks for responding about houses. So are you saying that a house shouldn't be that much each year fir repairs? Are you saying that big ticket items would be like once after many yrs ???

U can’t know. A boiller can go after 10 years but if u buy an old house u can be on year #9

thunderstorm

Thu, Apr 04 2019, 2:01 pm

Our hot water tank died less than 6 months after we moved in. We knew that the boiler was pretty new but apparently the water tank wasn't.

When you own a house there is constant maintenance that needs to be done. You can do it yourself and not spend to much. My DH is a DIY guy so we barely ever called a repair guy for anything. We cut our own 3/4 of an acre of grass, shovel ourselves and trash removal is included in the village tax we pay.

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