Four Facets to Consider When Buying a Condo4000639
Condo living has many benefits, but the procedure is decidedly different than buying a single-family members home. It is important to consider all aspects of condo living before embarking on a condo buy, which includes understanding the differences between single-family members homes and condos.
Condo living is ideal for people who seek the safety and financial advantages of owning a home, however want to steer clear of 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 Fees
All condo owners should pay homeowner's association charges, also known as HOA charges. HOA fees 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 price of the condo when buying a condo, but the condo charges as well, as they can be quite 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 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 significantly in the years to come.
Expect, of course, to spend larger HOA fees on more upscale condo properties, or those properties that offer a wide array of services and amenities for its residents.
Property owners Association Restrictions
Along with the advantages 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 location restrictions on what residents can and can't do. Although most HOA restrictions are designed to advantage condo owners and property values, you might find that some HOA restrictions don't match you or your lifestyle. It is consequently quite important to cautiously 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 simply won't be afforded the privacy you would get living in a single-family members residence. Make sure you are comfy with how a lot public space needs 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 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 purchasers.
As a outcome, you can anticipate to come to the table with a bigger down payment if you want to buy a condo. Although this amount will differ primarily based on a variety of factors, including the age of the condo building, the vacancy price and the state where the condo is located, you should seek guidance from a lender when contemplating condo living.
