Financial Benefits
WHAT IS A COOPERATIVE (CO-OP)
Often referred to as a “co-op,” cooperative housing combines the financial advantages of home ownership with the convenience of community living. Designed to fit your changing lifestyle, one of the key features of a cooperative is joint ownership of the property. A cooperative is a community of active adults who own an equity share—not just a unit—in the entire community through a not-for-profit Cooperative Corporation. Each equity share is held through an official Membership Certificate upon purchase. A strong commitment to community, involvement and control, and great value are the major differences between cooperatives and other housing types.
Earn equity
Realife cooperatives are a smart way to downsize and still be able to earn equity in your home. Each year you live in the cooperative you earn a pre-determined amount of equity. This annual appreciation amount is added to a member’s original share price to determine the selling price of a unit.
Financing and Tax Advantages
The cooperative corporation holds a 40-year master mortgage resulting in lower monthly payments when compared to a traditional 30-year mortgage. This keeps the prices affordable and easier to sell than market-rate housing.
Owning a share and living in our cooperative can also give you itemized tax advantages such as mortgage interest and real estate tax deductions.
Compare your housing options
Ownership and operation are the distinguishing factors in housing options. Below is a quick comparison of options independent seniors can choose:
| Realife Cooperative | Townhome or Condominium | Apartment | |
|---|---|---|---|
| How to Purchase | Receive one share when you purchase unit | Sign a purchase agreement for a real estate transaction. | No purchase - only rent |
| Resale | Cooperative has first option to sell or buy unit. Use wait list to assist member in resale of unit. | Owner has responsibility to start process for sale of real estate (i.e. enlist services of a realtor) | You cannot resell |
| Building Financing | Financed with one mortgage for the entire building. Member has no individual liability. Collectively all shareholders contribute to mortgage. | Owner(s) obtain a mortgage and have individual liability. | No ownership |
| Building Control and Voting | Board of Directors made up of resident members. Each unit has one vote. | Most often an owner association made up of home owners. | Property manager only |
| Day-to-Day Operation | Building operated under terms of bylaws. Managing company staff oversees general operation. | Unit control and maintenance controlled exclusively by owner of the unit. Common elements of building administered by owners association and/or for hire property manager. | Property manager only |
| Equity | Limited equity based on amount of time lived in unit. | Dependent on market conditions when you sell. Market rate. | Not applicable |
Compare your housing costs
Fill in the column below to see how much you could save by living at Realife Cooperative of Brooklyn Park:
| Monthly Expenses | Realife Cooperative | Your Home |
|---|---|---|
| Rent or Mortgage | $0 | |
| Monthly Fee | (varies by Floor Plan) | |
| Property Taxes | Included | |
| Insurance | Included* | |
| Electricity | Average $100 a month | |
| Natural Gas/Heat | Included | |
| Water/Sewer | Included | |
| Water Softener Salt/Maintenance | Included | |
| Trash/Recycling | Included | |
| Telephone & Internet | Included | |
| Snow removal/Lawn care | Included | |
| Heated Garage Stall | $40 per month | |
| Repairs | Included | |
| Cable TV | Included | |
| Totals |
* Building and common area insurance included. Resident responsible for personal HO6 property insurance.
