Should You Buy a Condo?
If you're a first-time home buyer or looking to "downsize" your home, buying a condo may be an attractive option for you. But first consider the advantages, disadvantages and other important issues:
Advantages of Condo Living
Condos are a popular choice in today's market and offer many advantages not typically found in other types of homes. For example, condos:
- Offer all the benefits of property ownership, including potential return on investment
- May be less expensive than other types of homes
- Are accessible to more buyers in areas (cities, in particular) where property values are high
- Require less time for maintenance
- Usually provide increased security
- Often offer more recreational and social activities
Disadvantages of Condo Living
A condo may also come with the following downsides:
- Lack of privacy
- High noise level
- The corporation's right of entry to your unit if reasonable notice has been given or during emergencies
- If you live in a complex of condo buildings, your fees may be allocated to them all instead of just to the one in which you live
Understanding the Condo Fee
Along with your mortgage and property tax payments, you are also responsible for condominium fees (usually paid monthly), which pay for:
- Maintenance and upkeep of the property
- Amenities such as a pool or health club
- Utilities
- Property management fees
- The condo corporation's insurance policies
- Reserve fund contributions (this is the fund set aside for major repairs or renovations)
You and all the other fee-paying unit owners have access to common areas that may include recreational rooms, entrance ways, hallways, gardens and mechanical/electrical services. This can have its downside-the owners usually vote on proposed changes to the common areas, and you may find yourself on the losing side.
Understanding the Role of the Condo Board
The condo owners elect a board of directors to run the condominium. The board sets rules and regulations to help ensure the comfort and safety of all the owners. The board also determines the level of responsibility owners will have for maintenance within their units.
It's important that you review the condo rules and other governing documents before you purchase your unit. Ask yourself if you can live with them. Easygoing rules about parties may seem great-until the unit next door is carousing on a night when you need sleep!
If condo living sounds right for you, the next step is to consider whether to buy a new or resale condo.
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