Four Facets to Consider When Buying a Condo482683
Condo living has many advantages, but the process is decidedly various than buying a single-family members home. It is important to consider all elements of condo living before embarking on a condo purchase, which includes understanding the differences between single-family 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 particular set of responsibilities and challenges:
Homeowners Association Fees
All condo owners must pay homeowner's association charges, also known 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 consequently important to not only consider the cost of the condo when buying a condo, but the condo fees as well, as they can be fairly substantial, especially 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 essential 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 fees will increase dramatically in the years to come.
Expect, of course, to spend bigger HOA charges on more upscale condo properties, or these properties that offer 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 location restrictions on what residents can and can't do. Even though most HOA restrictions are designed to advantage condo owners and property values, you may find that some HOA restrictions don't fit you or your lifestyle. It is consequently quite important to carefully read the restrictions of the HOA rules and restrictions of any condo in which you are interested.
Loss of Privacy
Although many condo buildings are designed and constructed in such a manner as to reduce noise from nearby neighbors, you merely won't be afforded the privacy you would get living in a single-family members residence. Make certain you are comfy with how much public space needs to be shared amongst the residents.
Large Down Payment
Due to the many modifications all through the lending industry 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 quite 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. Although 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.
