Four Facets to Think about When Buying a Condo8277186
Condo living has many advantages, but the process is decidedly different than buying a single-family members home. It is important to think about all aspects of condo living before embarking on a condo buy, which includes understanding the differences in between single-family members homes and condos.
Condo living is perfect for individuals who seek the security 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:
Property owners Association Charges
All condo owners must pay homeowner's association fees, 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 essential to not only consider the cost of the condo when purchasing a condo, but the condo charges as nicely, as they can be quite significant, especially in today's newer condo buildings.
HOA fees 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 fees for its condo owners, as this could indicate whether or not your HOA charges will improve dramatically in the years to come.
Expect, of course, to pay bigger HOA charges on 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 purpose of a HOA is to place restrictions on what residents can and can't do. Even though most HOA restrictions are designed to advantage condo owners and property values, you might find that some HOA restrictions do not fit you or your lifestyle. It is consequently fairly important 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 reduce noise from nearby neighbors, you merely will not be afforded the privacy you would get living in a single-family residence. Make sure you are comfortable with how a lot public space needs to be shared amongst the residents.
Large Down Payment
Due to the many changes throughout the lending business as a outcome of the subprime mortgage crisis, and the reality that many condos severely lost their value throughout this time period, many lenders are now fairly stringent when it comes to lending money to condo buyers.
As a result, you can expect to come to the table with a larger down payment if you want to buy a condo. Although this quantity will differ based on a variety of factors, including the age of the condo building, the vacancy price and the state where the condo is situated, you should seek advice from a lender when considering condo living.
