The cooperative market has been more stable. As many cooperatives are older, there is also more chance for the renovation minded individual to purchase a spacious, but dated unit and update it to their own taste. The debt would then be incorporated into and serviced by the co-op fee. Condos would resort to special assessments. A co-op can have an underlying mortgage from either its initial conception or some other repairs and renovation work.
Owners generally have preference over renters.
Benefits of Cooperative Ownership 1. Like traditional financing, interest on share loans, the portion of the monthly co-op maintenance fee that pay real estate taxes and certain closing expenses may be tax deductible. Lower settlement costs than other real estate purchases. As purchasing a cooperative is a stock transaction, the transfer and recordation taxes assessed in many jurisdictions do not apply. Further, title searches are handled through a less expensive UCC search rather than the various public records.