Four Facets to Think about When Buying a Condo4268079
Condo living has many advantages, but the process is decidedly various than buying a single-family home. It is essential 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 security and financial advantages of owning a home, yet want to steer clear of the upkeep that goes along with a single-family members home. However, along with condo ownership come a certain set of responsibilities and challenges:
Homeowners Association Charges
All condo owners should spend homeowner's association charges, also known as HOA fees. HOA fees are typically paid on a month-to-month 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 charges as well, as they can be fairly substantial, particularly 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 fees, but to also look at the HOA's history of raising HOA fees for its condo owners, as this could indicate whether your HOA fees will improve significantly in the years to come.
Anticipate, of course, to pay bigger HOA fees on more upscale condo properties, or those 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 place restrictions on what residents can and cannot do. Even though most HOA restrictions are designed to advantage condo owners and property values, you may find that some HOA restrictions do not match you or your way of life. It is therefore quite essential 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 merely 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 changes throughout the lending industry as a outcome of the subprime mortgage crisis, and the fact 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 result, you can expect 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, such as the age of the condo building, the vacancy price and the state where the condo is situated, you should seek guidance from a lender when considering condo living.
