Rossmoor CO-OP Ownership : What are its  PRO’s  &  CON’s ?

PRO’s :

          1.) Co-ops are inexpensive to purchase

          2.) If an appliance breaks down, the Mutual pays for its replacement    

          3.) Almost all Co-ops are conveniently located near Clubhouse

          4.) Almost all building exterior maintenance is the responsibility of

                   the Co-op Mutual (an enclosed porch is the single exception)

5.) Co-op owners are able to deduct payments of property taxes and

                   loan interest from their federal taxable income

CON’s :

            1.) Expect to purchase Co-ops with cash only. (Available bank loans

are believed to be non-existent)

          2.) Home Equity Loans are not available to Co-op owners, making it

                   impossible for homeowners to tap into individual built-up equity

          3.) The Co-op Buyer must also be its resident (Investors not allowed)

          4.) Co-ops were rentable for a max of only 6 months, every calendar year.

                As of March, 2010 a single 6 month extension may be granted.

        and, most importantly,

          5.) The Buyer must have guaranteed monthly income equal to at

least three times the monthly maintenance due on the Co-op,

                   in order to quality as owner.  No co-signers had been allowed until

                   March of 2010, when ownership restrictions were loosened.

                   The co-signer's name must appear on the certificate along with the

                   Buyer, and their shares must be owned as Joint Tenants.