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Co-ops Cost Less Than Condos in Torrance, CA!

By
Real Estate Agent with The Real Estate Group

Are you interested in buying a co-op? Do you even know what a co-op is? Read on for some interesting facts about co-ops in Torrance, CA:

  • Torrance, CA co-ops are more affordable than identical condominiums. You can pay $50,000 to $100,000 more for a Torrance condo, generally because people are more comfortable with the term condo, and simply don't know what a co-op is.
  • Co-ops are structurally the same as other types of real estate such as condos, single family residences, townhomes, or mobile homes, in fact some condos used to be co-ops.
  • Co-ops require financing from a bank that specializes in co-ops.
  • Co-ops usually require a higher down-payment, usually from 10 to 20% depending on the association. 
  • Buyer will hold a share in the corporation that owns the building. This stock certificate will be held by the bank that finances the buyer's loan, if any.
  • In return for the certificate of stock, buyer is allowed to occupy a particular unit in the building.
  • HOA fees will also include monthly taxes, so buyers don't have to deal with a hefty twice-yearly tax bill. And, yes, taxes and interest are deductible as they are with typical real estate purchases.
  • Prospective buyers must attend a brief interview with the officers of the homeowners association in order to confirm financial ability to pay the monthly dues (known as carrying charges.) Financial documents are required as they would be for a loan.
  • Buyers must notify the homeowners association before beginning any structural modifications. Permits will be required for projects involving plumbing and/or electrical.
  • Co-op prices follow the housing market. Just like condos or houses, prices will increase or decrease depending on the market.
  • Co-ops limit or forbid owners to rent out their property. Owner-occupation is required.

So now you know! Many realtors and lenders have discovered the affordability of co-ops and chosen to call them home. If you would like more information, I have found this informative link: http://www.coophousing.org/buying_in.shtml and be sure to call me if you are interested in purchasing a Torrance, CA co-op.

 

Comments (1)

Kat DeLong
Realty ONE Group Mountain Desert - Prescott, AZ
REALTOR
Wow--Torrance has come a long way from the time I was born there (1951). Amazing!
May 10, 2007 02:18 PM