A condo or condominium is a residential or housing complex consisting of several separate units. Each unit in the complex belongs to a specific individual. Owners may rent out their units to tenants or keep them as apartments or independent houses.
Condos and houses are two different properties. Whereas condos are single units existing within a larger building, houses are stand-alone single-unit residential structures. Typically, a house owner purchases the building and its land.
If you buy a condo unit, chances are high you'll have neighbors below, above, and next to you. On the other hand, a house or single-family home doesn't share the same space with other buildings. That is one of the reasons why condos are often cheaper than free-standing houses.
However, condos attract homeowner's association (HOA) fees, unlike houses. These fees cater to the expenses of maintaining and repairing amenities like swimming pools and clubhouses. They also act as reserve funds and pay for insurance.
Condos and apartments are somewhat structurally similar- both are units within more significant buildings. So, both condo owners and apartment renters are surrounded by neighbors living in the same structure. This similarity means people in condominiums and apartments have access to similar amenities like communal trash disposal and swimming pool facilities.
Amenity-wise, mansions are less likely to have the community facilities available in most condominium complexes, including pools and gyms. But these homes may have numerous high-end amenities, including private spa rooms, fully-equipped outdoor kitchens, and exquisitely-manicured backyards.
Whether to buy or rent a condo can be a dilemma. If all signs indicate that you'll live in the same place for the next five years or more, buying is more sensible than renting. To ensure you pick the best option, put together a five-year plan.
Most condos cost less than single-family homes because, first, buyers purchase units with no land. What you buy in a condo is the air space within your walls. But you also share an ownership interest in exterior areas, stairwells, and other community properties and amenities.
Although renting an apartment may seem cheaper than buying a condo, in the long run, the obverse is true. If you rent a luxury apartment designed to provide higher-than-average convenience and comfort, the expenses will be higher.
Condo owners often have top-tier community amenities at their disposal. These include fitness centers, pools, and rooftop terraces. And, some condominiums have unique features like spas and tennis courts too!
Many of the amenities available in condominium complexes are absent in most single-family houses. The reason is that they are expensive to build and install. For instance, an inground pool can cost anywhere from $28,000 to $55,000 in the United States, depending on shape, size, and materials.
Anything outside your unit's interior space, including the siding and the building's structure, is the condo association's responsibility. Therefore, you can safely assume that the board will repair and maintain exterior lighting, the roofing system, and amenities like hot tubs, sidewalks, trails, or walkways.
Fortunately, modern condominiums come with most must-have appliances. So, all you have to do is move into your unit and use them. No need to start searching for appliances and buying whatever you can find. Moreover, since the condo is yours, you can replace anything you find outdated or purchase whatever is missing.
Condos are more secure than apartments and similar alternatives. That is so because reputable security companies guard condominium complexes. These service providers use skilled and vetted staff to watch over the buildings, units, and occupants.
Top-notch condos also use several security systems to guarantee owners' safety. These include alarm systems and surveillance cameras. Other complexes have access control systems, intercom devices, roving guards, and front desk teams.
Condos don't come with individual land ownership privileges. On the contrary, the plot where a condo complex stands belongs to all homeowners. Therefore, if you buy a condo, you'll share the land's ownership with other owners.
Most condos are similar to sizable apartments. That means they can be small, especially for families or groups living together. In addition, although some units come with designated storage spaces, they are smaller and unfit for storing more oversized items like old furniture.
Depending on location, some condominiums offer significantly limited parking spaces. Worse still, some complexes lack this option. If you own multiple cars, living in a condo where the rules don't allow you to park more than one vehicle at a time can be challenging.
Condo owners live in a community run by a governing board or association. The authoritative body sets rules and regulations that every resident must observe. For instance, your condo's HOA may bar unit owners from throwing noisy parties or accessing recreational areas after permitted hours.
Some condo association rules also dictate the number of pets you can have in your unit. Living in a condominium with strict rules can be inconvenient, especially for pet lovers and owners who prefer individualizing their dwellings.
Prepare to pay specific fees after buying a condo. The first is a condominium fee- a levy covering ongoing maintenance costs associated with the complex. The amount you'll need to cover pay depends on your condo's size, amenities within the building, etc.
Most condo homeowners' associations also install video and audio surveillance systems. These can raise privacy concerns because you, the resident, may not know who monitors them and whether they are intrusive rather than safe.
Buying a condo is a significant investment. It would be best if you did all you could to ensure you make the right decision and end up with the best property. That includes factoring in the following:
Your lifestyle, needs, and preferences should guide you in picking the proper dwellings. A condo may be ideal if you spend most of your time away from the house, on business trips and similar activities. That is so because you won't worry about overgrown flower beds, dirty driveways, clogged gutters, etc., while you are away.
Suppose your lifestyle and preferences justify buying a condo. In that case, you should outline the amenities you'd like to access. For instance, if you love swimming and barbequing, include a pool and barbeque pit on your wish list.
Note that some properties come with barebone offerings. Therefore, finding a simple condo won't be impossible if that is what you want. But if you find a fitting condominium with some facilities you don't need now, consider buying it. It is better to have something you don't need today than regret not having it when circumstances change in the future.
Different HOAs have their own rules and regulations. These apply to all condo owners and their families, tenants, occupants, etc. For instance, an association may stipulate that homeowners are only allowed to own less than two pets or disallow dog ownership for whatever reasons.
Unless you are comfortable with the rules and regulations that your condo's association has set out, living there will be a nightmare. Therefore, you should carefully go through them and consult with the board.
Location is vital, especially if you plan to buy a condo as an investment. Your unit is more likely to fetch higher prices if it's in an area with essential facilities, including healthcare centers, schools, roads, and public transport systems.
The condo buying process may be lengthy, but following it is indispensable. Failure to do that will likely make your endeavor a fruitless journey. So, after making the monumental decision to buy a condominium, follow through with the steps outlined below.
Numerous reasons support the decision to buy a condominium. First, condos are more affordable than single-family homes. Plus, they promote a greater sense of community and security. And not to mention that condo owners tackle fewer maintenance and repair requirements than other property owners.
Although condo ownership has drawbacks, including no land ownership and lack of privacy, the accompanying benefits outweigh them. But don't make an impulsive decision without considering your lifestyle, budget, needs, and preferences. Good luck!
Before anything else, as a real estate investor, you are left with several investment options to choose from. Some investors prefer to get into the typical fix-and-flip business while others want to be as passive as possible about it and just go with REITs. As an investor, you should know what you want. Meaning, early on, you should have an idea of what your investment goals and criteria are. Knowing these two things will help you identify which types of real estate properties to look for. Among those options are condos.
Condos used as rental units can bring in a good amount of money for property owners, especially ones that are located in prime spots in the city. While condos are more affordable, they rake in good rental rates, especially in areas where almost everything is accessible and walkable. This makes them a pretty good investment. However, investors should also watch out for the condo fees as they tend to eat up profit pretty fast.
One of the disadvantages of investing in condo units is that they are harder to finance. Yes, they are relatively cheaper compared to house-and-lots, but financing can pose a headache for investors. If you have to take out a loan to purchase one as part of your BRRRR strategy or other investment approach, keep the following things in mind.
Generally, residents of condo units regularly pay a certain amount of money for association fees. A big part of that money is supposed to go to proper building maintenance, such as keeping the complex clean, making sure it is well lit, and conducting the necessary repairs.. If a certain condo complex does not look well-kept, you might as well bring your business elsewhere. 781b155fdc