Post-closing liquidity is the amount of liquid assets a buyer is required to have after closing on a property and factoring in the down payment and buyer closing costs. Post-closing liquidity (also known as post close liquidity) forecasts how many months’ worth of apartment carrying costs you will have readily available in liquid assets after you close on your apartment. Most co-ops in NYC require 12 to 24 months’ worth of post-closing liquidity, and your typical lender will require at least 6 months of post-closing housing reserves.

Both condos and co-ops have an operating budget which is paid for collectively by all the owners through a monthly fee charged to each unit owner. This maintenance fee will usually be split proportionally and fairly among the condo owners and coop shareholders, typically dependent on the amount of square footage their apartment has and other factors such as floor and outdoor space.

Condo common charges are different from co-op maintenance charges in that property taxes are not included. Because condominium owners are holders of real property, they are taxed individually by the NYC Department of Finance. As a result, they receive a property tax bill by mail and pay directly or via their mortgage lender. Co-ops make property tax payments on behalf of the entire building, and this means individual co-op owners do not pay property taxes directly.

Most co-ops in NYC require a minimum down payment of 20%. However, the specific buyer financial requirements vary by co-op. Although condos are generally more expensive, co-ops are often times less affordable due to a combination of higher down payment requirements imposed by co-ops and the need to have 1 to 2 years of ‘post closing liquidity’ for co-op board approval.