Four Facets to Think about When Buying a Condo6008671
Condo living has many advantages, but the procedure is decidedly different than purchasing a single-family home. It is essential to think about all aspects of condo living before embarking on a condo purchase, which includes understanding the differences between single-family members homes and condos.
Condo living is perfect for people who seek the safety and financial advantages of owning a home, however want to avoid the upkeep that goes along with a single-family home. However, along with condo ownership come a certain set of responsibilities and challenges:
Homeowners Association Fees
All condo owners should spend homeowner's association charges, also recognized as HOA fees. HOA charges are usually paid on a monthly or yearly basis, and they are in addition to any taxes or mortgage payments you make. It is therefore important to not only consider the cost of the condo when purchasing a condo, but the condo fees as well, as they can be fairly substantial, particularly in today's newer condo buildings.
HOA charges cover a wide array of things, such as building and grounds upkeep, amenities and services, and repair work.
It is important to not only look at the HOA charges, but to also look at the HOA's history of raising HOA charges for its condo owners, as this could indicate whether your HOA charges will improve significantly in the years to come.
Expect, of course, to spend larger HOA fees on much more upscale condo properties, or those properties that provide a wide array of services and amenities for its residents.
Homeowners Association Restrictions
Along with the benefits of HOA fees, such as building amenities and services, such as swimming pools, business centers and fitness facilities, the objective of a HOA is to place restrictions on what residents can and cannot do. Although most HOA restrictions are designed to advantage condo owners and property values, you may find that some HOA restrictions don't match you or your lifestyle. It is consequently fairly essential to carefully read the restrictions of the HOA rules and restrictions of any condo in which you are interested.
Loss of Privacy
Even though many condo buildings are designed and built in such a manner as to decrease noise from nearby neighbors, you merely won't be afforded the privacy you would get living in a single-family residence. Make sure you are comfy with how much public space requirements to be shared amongst the residents.
Large Down Payment
Due to the many modifications throughout the lending business as a outcome of the subprime mortgage crisis, and the fact that many condos severely lost their value during this time period, many lenders are now fairly stringent when it comes to lending money to condo purchasers.
As a outcome, you can anticipate to come to the table with a larger down payment if you want to buy a condo. Even though this amount will differ based on a variety of elements, including the age of the condo building, the vacancy rate and the state where the condo is located, you should seek guidance from a lender when contemplating condo living.
