Condos are a great way to get started in owning rather than renting.
If you’re curious about the concept of a condominium, you’re in the right place. A condominium, often referred to as a condo, is residential property where each unit is privately owned by an individual. Condos come in two main types: attached condos, which share walls with neighboring units, and detached condos, which are standalone units without shared walls.
Acquiring a condo holds a certain allure, given that they often present a more budget-friendly alternative to single-family homes and frequently occupy prime locations like in the city. Condos can also serve as a wise choice for military personnel who frequently relocate, as they have the option to utilize VA loans for condo financing.
Here are a few things to know about condos.
-You don’t own the land- You own a unit in a building with shared common areas with other owners and this limits what you can do.
-Shared Costs – When you own a condo, you own your unit, but also a share of the common areas such as the lobby, gym, swimming pool, and other shared spaces. This means that you will be responsible for paying a monthly maintenance fee to cover the costs of maintaining these areas and ensuring their upkeep.
– Association fees are higher and go up over time. Condos are managed by a homeowner’s association (HOA) that sets rules and regulations for the entire building. Before purchasing a condo, it is essential to review the association’s rules and make sure they align with your lifestyle and preferences. These fees cover luxury amenities like a shared pool or gym. They also help pay for landscaping and general exterior maintenance. HOA’s can at times have a ‘special assessments’ for large projects like roofing, plumbing, paving roads, termite, etc.
– Limited Privacy- Condos typically have shared walls, floors, and ceilings with other units, which means that you may experience more noise and less privacy than in a single-family home. Additionally, HOAs often have restrictions on renovations and modifications that you can make to your unit.
-Pay attention to the occupancy of homeowners versus renters. If too many owners are housing providers, it might feel more like an apartment without being surrounded by invested homeowners. Talk to the neighbors and do your research.
Condos are a great way to get into homeownership or to downsize to a simpler lifestyle. Owning a condo makes it easy to lock up and travel and have less of a worry of keeping up a large home. Condos can be a good investment if they are located in a desirable area, have a strong HOA, and are well-maintained. However, the appreciation and resale value of a condo may be lower than that of a single-family home, particularly if the condo market is oversaturated or if the HOA has financial or maintenance issues. Also, if you are obtaining a VA or FHA loan, the condo complex must be approved by those guarantors. For a list of these projects, reach out today!
Please reach out today to get started on your homeownership journey!