Condo living has many advantages. Condominiums are a terrific alternative for first-time home purchasers and individuals wishing to enjoy homeownership without considerable care, thanks to communal living and walkable metropolitan settings.
What is a Condo?
A condo, short for condominium, is a single unit within a multi-unit building, such as an apartment complex, a standalone house, or a townhome. It might be one of several units in a typical structure like a high-rise building or one of two or three flats in a much smaller walk-up building. Unlike an apartment rental, condos are independently owned apartments within a structure. You will be responsible for paying a monthly fee to the condo association when you buy a condo. This organization handles all external and common area upkeep.
Pros and cons of living in a condo
If you're considering purchasing a condo, examine the advantages and disadvantages to make the best selection for your lifestyle and budget. Here are a few things to think about.
Condos are classified as either freehold or leasehold. The renter owns the apartment outright in a freehold condo. Instead of owning the property, residents in leasehold condominiums have contracts with their landlord. In a condo community, individual condo units often make up one building or a complex of multiple buildings. However, you may come across detached condominiums, where owners live in their freestanding dwelling unit – similar to a single-family home – but pay into a condo organization that manages the community's common area.
Pros
Lower-maintenance living
Sense of security: Some condominium complexes have security personnel, and the doors are more challenging to get from the street than single-family houses or townhomes.
Opportunities to be social: Some homeowners' associations host activities such as pool parties, barbecues, and doggie playdates. Furthermore, you're more likely to meet your neighbors in person if you see them in passing.
Affordability: Condos can be a cheaper method to acquire property since they are more compact and need less land than single-family homes. Property taxes are also often lower. Condos are perfect beginning houses for some first-time purchasers since they don't require the care and maintenance of a detached home while still providing the benefits of ownership and developing equity.
Amenities: You may have access to top-notch amenities such as a grilling area, business center, pool, dog park, covered parking, clubhouse, and more, depending on the condo complex, and the cost of enjoying these advantages is divided among all members.
Cons
HOA Rules: One of the most common complaints about condo living is that HOA regulations may be restrictive, dictating everything from trash collection and noise levels to what can be stored on your balcony and how many pets you can have.
Investment risk: Because you share ownership with other individuals in the building, condos might be a riskier investment.
Lack of Privacy: If you cherish your solitude, a condo may not be for you because condominiums share common spaces such as the lobby, corridors, outdoor patios, and amenities. There are also noise difficulties with the shared space.
Rising HOA fees: HOA fees often increase over time to cover upkeep and any additional perks. HOA costs should be factored into your homebuying budget, especially in increasingly expensive property markets.
Restrictive rental policies: When you purchase a unit in a shared building, you agree to observe the regulations, which may limit the number of units that may be rented at any particular time. Many condominiums prohibit owners from renting their apartments after they own them, so if you're looking for an investment property, verify the rental rules.
Bottomline
When times are rough, condominiums can be a decent investment for the appropriate buyer in the right location, albeit they are more challenging to acquire and sell than a detached house. Before buying a condo, make sure you do your homework and look into the HOA, CC&Rs, and any tax and insurance issues.