Lincoln Park, IL

Condo or Co-Op… which is the right choice in Lincoln Park Chicago?

With so many housing choices on the market, many individuals find themselves considering living in either a condo or a co-op; basically these two residences are the same, right? They physically look like apartments, so they must be comparable. On the surface that may be the fact; however, in reality they are different. This article explores the two types of residences; offering the distinction between the two as well as the financial implications. This way, you may decide in the end which is the best choice for you.

The Major Difference

Condo – When you purchase a condo, or condominium, you are buying in essence an apartment. In addition to the apartment, you pay monthly fees to share in the use of common amenities, building facilities, and over all maintenance of the building and grounds managed by an association. Buying a condo is much like purchasing a house as you hold a deed.

Co-Op – Ownership in a Co-op, or cooperative housing project, existed before condominium ownership. Instead of owning your apartment, you own the shares of the corporation that owns the building and the amount of shares you own dictates the size of your residence. Technically, you are not buying a real estate property; instead you have the right to occupy an apartment in accordance with the terms of a document called a “proprietary lease.” Co-ops are governed by a Board of Directors which tends to be more authoritative and restrictive than a condo association.

Board Approval / Requirements

Condo – When a potential buyer desires to purchase a condo unit, the existing homeowners have no say in who may or may not move in to the building. However, the condo associations Lincoln Park may enact a “right of first refusal” provision and require buyers to provide copies of the sales contracts, condo applications, and authorization for credit reports and even letters of reference.

Co-op – Potential buyers of a co-op must undergo a more complex application process for a board approval in Lincoln Park. Currently, co-ops “approve” buyers to confirm their financial ability to afford the home they hope to purchase inclusive of association fees, real estate taxes, and future capital improvement costs.

When seeking board approval, purchasers are generally required to provide an application, a detailed personal finance balance sheet, prior tax returns, and letters of personal and professional references — and all of this is prior to a scheduled interview with the board.

Financing

Condo – Condo associations in Chicago simply do not involve themselves in the financing aspect; that is held between the buyer and the lender. Therefore, homebuyers may participate in a variety of financing options available.

Co-Op – Homebuyers purchasing into a Chicago co-op have restrictions and generally control the amount needed for down payment, thus the amount allowable for financing. Consequently, the current average reported rates are 25% down in cash with the remaining 75% to be financed. It is not unheard for a co-op board to require buyers to pay for their entire purchase in cash.

In today’s market, there are loan options available to both co-op and condo borrowers and are competitive with each other.

Maintenance Fees and Real Estate Taxes

Condo – Both condo owners and co-op shareholders pay maintenance fees and real estate taxes. How they go about payment differs. In a condo building, each homeowner receives a tax bill from the county.

Co-Op – Monthly fees are usually higher in a co-op as compared to condo associations because they include two additional expenses which condo owners pay but in a different manner. Shareholders do not receive a tax bill directly from the county as condo owners do. Rather, the county bills a single tax assessment to the corporation. Shareholders then pay a proportional share of the total bill based on the number of owned stock shares. Many co-op buildings include the taxes with the monthly assessment fees much like homeowners pay their taxes each month in an escrow account along with mortgage payments.

Capital Modification Projects in Chicago

All buildings experience the need for capital improvements, that's not unique to Chicago. Some projects may be simple upgrades; however, improvements depend on the age and circumstance of the building and vary in scope. There may be a need for tuck pointing of brick or mortar, updated elevators, a new roof, plumbing or electrical renovations, or even the advancement of environmental “green” improvements.

Condo – Funding is normally through “special assessments” which can be structured as a single payment or installments over months and perhaps years.

Co-op – With a co-op, the corporation can obtain financing using the building as collateral and extend the payments over a long time period. Homeowners then pay an additional monthly prorated share of the capital improvement plus their normal maintenance fees and “mortgage.” An added bonus for co-op owners is that any money paid as a mortgage is tax deductible just like any other home loan.

To Sum It Up…

In the end, either way you have a wonderful home, but how you attain it is distinctly different. You want to consider the pros and cons of each building as well as its amenities. However, the bottom line is the fact that you have to be comfortable with your finances and understand the monetary implications between a condo and a co-op in Chicago.

I specialize in Lincoln Park, Lakeview and North Chicago Condos. Want to know more about the one bedroom, two bedroom or three bedroom market, I have the information you need! Please call me with any questions about high end leases or purchases! Leslie Glazier 312-208-3444. You

Did you know this about Lincoln Park?

After the Great Chicago Fire of 1871 ravaged the city, the section of Lincoln Park between Clark Street and Fullerton Avenue was left devastated and in need of rebuilding, while residences in the portion of the neighborhood north of Lincoln Avenue and west of Larrabee Street were spared. A construction boom following the terrible tragedy resulted in 10,000 new inhabitants in Lincoln Park as folks feverishly worked to reconstruct their lives or start new ones. (In fact, more than half of the neighborhood's existing structures were built in the period between 1880 and 1904.) Well-to-do German immigrants -- many responsible for establishing the area's breweries -- put up magnificent mansions along the waterfront, east of Clark Street and one of the neighborhood's most impressive residences was constructed at this time on Wrightwood Avenue called the Dewes Mansion, which still stands to this day. Still, the majority of Lincoln Park's residents were families of working class immigrants who lived in simple cottage-style homes and were employed at the massive industrial plants that sprang up alongside the North Branch of the river.

Here is a Great Video on Lincoln Park. I hope you enjoy it. I will try to post a bunch of different videos over the next few weeks about different neighborhoods around Chicago. Subscribe to my blog to get up to make sure you catch them all!

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Dreamtown.com offers great information about specific neighborhoods in Chicago, with tons of information. Here is some of the information on Lincoln Park.

Lincoln Park

Over the years Lincoln Park has gained a reputation as one of the city's most desirable communities. Its shady, tree-lined residential streets and stretches of exciting entertainment and nightlife are the ideal union of serenity and fun. The majority of Lincoln Park holds an old-fashioned appeal, reinforced by rows of brown- and graystone walkups and ornate, vintage architecture. DePaul University campus adds to the neighborhood's historic character with beautiful late-19th century buildings, while the population of students interjects a youthful energy into the area. An electric bar and club scene - favored by the younger crowd in Lincoln Park - is buffered by miles of tranquil green space and breathtaking shoreline in the neighborhood's namesake 1,200-acre park. Summertime bursts with activity as people come from all over the city to enjoy the expansive beach, waterfront jogging and biking trails, a jam-packed schedule of street festivals and farmer's markets, and the family favorite - the Lincoln Park Zoo.

In warm-weather months, we wait for Wednesdays and Saturdays to stock up on fresh produce brought in by local farmers to the popular Chicago's Green City Market (1750 N Clark St, 847-424-2486), located at the southwest corner of Lincoln Park (the park, not the neighborhood). Baskets in hand, city folk flock to the open-air stands for garden-grown fruits and vegetables, fresh cut flowers and hand-made baked goods. The market runs from mid-May through the end of October, so Lincoln Parkers can skip the produce aisles at the grocery store and stop by the stalls for some old-school shopping -- at least until fall is in full swing. Also hosting a weekly farmer's market, the parking lot at Lincoln Park High School off Armitage Avenue draws a considerable crowd on Saturday mornings from May through October. Not as extensive as the Green City Market, the booths here still attract the best crops from area harvesters and even food from out-of-state farms, not to mention some beautiful floral bouquets and mouthwateringly delicious home-baked treats. The Lincoln Park Zoo also has its own farmer's market every fourth Sunday of the month. Take our advice: Get there early, as the best-looking produce is always the first to go.

Lincoln Park is packed with tons of great restaurants, bars, shopping, parks and more.

I specialize in the Lincoln Park area.

So if you want real results with No nonsense then call me at (773) 423-9202 Remember, it doesn't cost anything to talk, so call me and I will answer all your questions!