Cooperative living is affordable living in a not-for-profit community. One of the key differences between cooperatives and other housing options is participation. Members act collectively to achieve goals, one of which is to reduce costs of everyday management, maintenance and repair.
Equity in your current home may more (perhaps much more) than cover the share price. In limited equity appreciation cooperatives (the great majority of cooperatives), equity grows by a set amount each year, so your home value is relatively stable even in rocky economic times. There are also market rate cooperatives. When you visit cooperatives, you will learn which equity model each uses.
When it’s time to sell, the cooperative helps. Selling a share in a cooperative is not considered a real estate transaction, so you won’t need to pay a real estate commission.
There is a monthly fee that covers operating expenses and maintenance not only of the building exterior, grounds and common areas, but also the appliances, flooring, window treatments, cabinets and fixtures in the units. The monthly fee also includes fund reserves to cover future renovations and replacement costs for these items — and that means financial peace of mind, knowing you won’t be surprised with large assessments.