Buying & Selling a Cooperative: Maximize Your Senior Housing Investment

Considering a move as part of your retirement downsizing plans, but not quite sure where — or what type of housing — is in store for your new chapter? 

Active adults who want to reap the benefits of homeownership, plus the dynamic lifestyle and exciting amenities many rentals offer, should look no further than cooperatives.  

Along with giving you the best of both worlds when it comes to financial stability and convenience, Artessa cooperatives also simplify your buying and selling process from end to end. 

Explore next steps before your next move and see why our co-ops are a win-win senior housing investment in your prime. 

Understand the Cooperative Ownership Structure 

Cooperatives enable active adults to have a say in what happens within their community, reap the tax benefits of homeownership (minus the hassle of upkeep) and enjoy plentiful amenities and activities right outside their door.  

Unlike buying and selling a traditional home, peppered with complexities — from securing a realtor to signing endless contracts — a co-op senior housing investment is a seamless process. Artessa’s limited equity model makes appreciation valuations easy and allows you to avoid the common hassles of homebuying. 

Here’s a glimpse into how it works and what to expect within this unique housing model: 

• Share Payment: This one-time fee is similar to a down payment for a home, but it instead purchases a share in the cooperative. These share payments provide equity to secure the cooperative’s mortgage among shareholders. 

• Monthly Membership Fee: This recurring fee, similar to rent, covers all home maintenance, community upkeep, real estate taxes, utilities, management and more. 

The more you put down initially on the share payment, the lower your monthly membership fee will be. And as an added plus for co-op owners, cooperative shares appreciate steadily, making them a stable senior housing investment. Artessa offers a predictable 2% annual appreciation rate.  

Learn the Advantages of the Simplified Buying Process 

One of the top benefits of working with a leading co-op like Artessa is having the guidance of a hands-on team that manages and guides the buying process entirely first party, from housing searches to paperwork, all the way through to final acquisition.  

Another key difference between homebuying and co-op investments is board approval. Each co-op buyer must get the green light from the co-op board before assuming ownership. This ensures members are aligned in views regarding responsibilities and governance within the community. 

Realize Financial Benefits Compared to Traditional Homeownership 

Retirement downsizing pairs fluidly with co-op living in several ways. In addition to the main financial benefit of ownership — equity growth — co-ops eliminate other costly aspects like home and community upkeep. Monthly payments cover all maintenance and repairs, so members aren’t at the mercy of unexpected and unpredictable expenses. 

As for taxes, most cooperative members deduct their portion of the cooperative’s mortgage interest and real estate taxes on their state and federal tax, similar to single-family homeownership.  

See How Senior Housing Investment ROI Works When You Sell 

If a co-op resident chooses to move, the co-op team facilitates the listing and sale, removing the typical entanglements attached to traditional home selling.  

Co-ops also generate predictable annual appreciation rate shares, which allows sellers to earn a profit, in turn, providing a financial cushion for their next move. 

Prepare for a Smooth Retirement Downsizing Transition 

Once the sale of a co-op is complete, the owner gets back their original share payment, along with the annual fixed increase that’s been compounding over the time they’ve owned it. A new stock certificate is then issued, finalizing the transition. 

Why Choose Artessa? 

Artessa offers hands-on support through every step of the buying and selling process, making it a hassle-free experience for active adults considering retirement downsizing.  

The reliability of co-op share appreciation, along with a low-maintenance lifestyle, ensures financial stability and peace of mind for co-op buyers and sellers. 

No matter what your next chapter brings, Artessa cooperatives in Minnesota — and coming soon to Iowa and Arizona — can help you navigate real estate complexities.  

Reach out to our team to schedule a tour at a community near you and learn more about the moving process.