The question is not which is better.
It is which will accept you.
Co-ops trade 10-25% below comparable condominiums and cost less to close. They also vote on buyers, and many decline non-resident purchasers as a matter of policy.
Before you read on
- General information as of August 2026 and typical Manhattan and Brooklyn practice rather than rules. Every building sets its own policy.
- Boards may not discriminate on any basis protected by federal, state or city fair housing law. Non-residency and unverifiable domestic income are not protected categories.
- Screen buildings for policy before viewing. A candid answer from a managing agent saves months.
Point 1What you actually buy in each
One is real property. The other is shares in a corporation with a lease attached.
| Element | Condominium | Cooperative |
|---|---|---|
| What you own | Real property, a deed | Shares plus a proprietary lease |
| Board's power over a buyer | Right of first refusal | Approval vote, no reasons given |
| Non-resident ownership | Generally accepted | Frequently declined by policy |
| Entity ownership | Generally accepted | Usually not |
| Subletting | Generally permitted | Restricted, sometimes prohibited |
| Price per square foot | Market | Typically 10–25% lower |
| Closing costs | Higher — title insurance, recording tax | Lower — neither applies |
| Monthly figure includes | Charges only; tax billed separately | Tax and building debt service included |
The last row is the most misread. A co-op quoting $2,200 can be cheaper in total than a condo quoting $1,300 plus a $900 tax bill.
Point 2Why most overseas purchases are condominiums
A condo board holds a right of first refusal, which it almost never exercises. The review is administrative rather than social.
Ownership by someone who lives abroad is ordinary in condominiums and frequently disqualifying in cooperatives.
An LLC can generally buy a condominium. Most co-ops will not sell to an entity at all, which conflicts with estate planning.
If the apartment will be let when you are away, the condo is frequently the only route that permits it.
The same freedoms that let you buy let the next international buyer buy, which widens the market when you sell.
No board package, no interview, no four-to-ten week wait for a decision that needs no explanation.
Point 3When the co-op discount is genuinely available
For a buyer who will occupy the apartment and can document their finances, it is real money.
Co-ops trade 10-25% below comparable condominiums per square foot, avoid title insurance and mortgage recording tax at closing, and face a smaller buyer pool that generates less bidding pressure. On a $2 million purchase that combination is a substantial sum.
The discount is available to a buyer who will live in the apartment, can assemble a full financial statement with translated home-country filings, and can demonstrate one to two years of maintenance in post-closing liquidity. It is effectively unavailable to everyone else, which is exactly why it exists.
Point 4Screening a building before you view it
Four questions to a managing agent, in writing, before any viewing is arranged. Has this building approved a non-resident purchaser in the past two years? Will it sell to an entity? What does the proprietary lease permit by way of subletting? Is there a cap on the loan-to-value the board will accept?
Answers vary enormously between buildings on the same block. A financing cap of 50% rules out otherwise qualified buyers regardless of documentation, and a primary-residence requirement in the lease makes an approved purchase unusable for a buyer who is abroad for most of the year.
Yes, and it happens regularly. The approval rate is materially lower than for domestic buyers, and many buildings decline non-resident purchasers as policy.
They underwrite the ability to pay maintenance for years using US tax returns, W-2s and domestic credit reports — none of which exist for an overseas buyer. Many decline rather than assess unfamiliar documents.
For a buyer who will occupy the apartment and can document their finances, yes — 10-25% per square foot plus lower closing costs is real money. For anyone needing flexibility, no.
Usually not. Most cooperatives will not sell to an entity, which conflicts directly with structures used to manage US estate exposure.
It depends on what the figure includes. A co-op's maintenance includes the building's property tax and often mortgage debt service; a condo's charges include neither. Compare total monthly cost per square foot.
Four to ten weeks from submitted package to decision, on top of the contract period. Overseas documentation and translation typically add two to three weeks to assembly.
RELATED GUIDES
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Important notice
The figures on this page are general information as of August 2026 and do not represent an offer, a quote, or a guarantee of any transaction terms. Reinvent NY does not provide legal, tax, or investment advice. Confirm anything material with an attorney and a CPA before you act on it. Nothing here is a solicitation to invest, and no return is promised. Real estate brokerage services are provided through R New York.