WHAT IS A COOPERATIVE?
HOW DOES IT DIFFER FROM A CONDOMINIUM?
WHAT ARE THE ADVANTAGES OVER RENTING?


WHAT IS A COOPERATIVE?

A Cooperative is a non-profit corporation.The Corporation is financed by a single overall mortgage on the community and no second mortgages are allowed.This non-profit corporation sells shares equal to the number of units on the property to qualified, approved individuals.They then are members of Bretton Village Cooperative through this share purchase.Subsequently, based on the size and type of his/her unit, each owner-member pays a monthly charge to the Corporation.From these monthly charges are taken the community over all mortgage payments, all gas utilities for heating, cooking, hot water, all water and sewage charges, exterior maintenance, interior maintenance (electrical, plumbing, and appliances belonging to the Cooperative), use of the recreational facilities and accruing of a reserve fund for emergencies.In other words, all of your housing expenses except electricity, telephone, cable TV and interior decorating.

HOW DOES IT DIFFER FROM A CONDOMINIUM?

In a condominium each housing unit is covered by a separate and independently secured mortgage at a wide variety of interest rates determined by the economy and date of purchase.Each owner finances his own unit individually, secures his own mortgage and makes his own mortgage payments.Plus he pays his own real estate and property taxes; he pays a separate maintenance fee and he pays for his own utilities.

One advantage of a cooperative over a condominium is the ease of ownership transfer.When a unit is sold there need be no title search or other complications, since the corporation holds and retains the title.Paper work and transfer costs are, of course, then held to a absolute minimum.As a protection for the present and future members, when a cooperative unit is vacated the former member occupant, is held legally responsible for the continuous monthly payment until the membership is sold.However, we have a Resale Director to assist in the marketing and resale of the membership.

WHAT ARE THE ADVANTAGES OVER RENTING?

One of the major advantages of cooperatives over renting is the income tax deductible features.Members can deduct the mortgage interest and real estate tax expenses from their Federal Income Tax returns.A renter cannot make any such deduction on their tax return.Secondly, the cooperative as an entity is a non-profit corporation and the result therefore shows in your carrying charges being lower.In a rental property oft times there is one owner that has title to the property and his first and foremost consideration is the profit he can make on his investment.In a cooperative our first thoughts are more of how we can save on expenses and keep our carrying charges down rather than up.