Considering buying a condo can be a wise decision. Prices are usually lesser for single-family homes, and many condos come with luxury facilities for their owners. If you are at that phase of your life where you do not have the time or ability to maintain, a condo can provide a cost-effective solution in terms of maintenance. Besides the pros of a condo, there are cons too. Condos have pricey monthly fees and have some limited use.
You may still prefer a condo as a suitable choice for you. A considerable amount of individuals opt for this option. However, you should know what you would get after getting a condo.
What Should You Keep in Your Mind Before Buying a Condo?
You should know that when you opt for a condo, you own a unit in a complex, so maintenance of your unit will be your responsibility.
Moreover, the outer space of your unit and the building itself will belong to some authority. This is usually a legal entity (the homeowners association or “HOA”) that owns and controls a group of condo owners.
Therefore, you have the legal right to your unit as well as to your surroundings. You will have “easements” that give you the right to use the land. However, you will only own your specific unit wholly.
You might consider this as a disadvantage. However, we have seen this work well for all state-holders. Nevertheless, there are both pros and cons to this way of living.
Condos Are Often Cost-Effective – But Not Always
There are two primary advantages to preferring a condo:
- You may save a considerable amount of money if you prefer a condo to a typical single-family house.
- There is usually some extra space for amenities: gyms, play courts, pools, etc.
Nevertheless, keep in mind that these benefits are not free every time. Preferring a condo is a cost-effective method compared to a traditional home. So a condo could be an easier starter home for a first-time homebuyer. If you compare the cost of condo fees to your mortgage payment, you may find that you do not pay as much for a single-family home, even when you are responsible for home and amenities maintenance costs.
Moreover, if you opt for a condo with lots of extra facilities, you need to know that you will pay a portion of the cost. The pool and gym are usually to attract visitors. However, if you are not going to use these facilities, there may be cost-effective ways to buy yourself some prestige.
Strict Requirements of Mortgage for Condos
You may hear that bearing a condo is more difficult because of unique mortgage challenges.
Lenders look carefully at condos to make sure that they are hit with unique requirements.
But do not get frightened by these hurdles; millions of people have succeeded in financing homes this way.
Condo “Assessments” Can Be Pricey
A well-run HOA usually saves a pile of cash for an emergency. They charge a bit more from the owners to receive more than they need and end up with reserves. This way, the management can do work in an emergency or when they need a significant amount to perform repairs.
Live According To the Rules and Regulations of HOA
Living in a condo means that you have to follow their rules regarding noise levels, hanging out laundry, parking, or usage of amenities.
You will sign a contract at the time of buying a condo. All the necessary details of the possession of the single unit and the extra space will be written so the owner will know his/her rights and responsibility.