Four Facets to Think about When Purchasing a Condo1426947
Condo living has many benefits, but the process is decidedly different than buying a single-family home. It is essential to consider all elements of condo living before embarking on a condo buy, which consists of understanding the variations between single-family members homes and condos.
Condo living is ideal for individuals who seek the safety and financial advantages of owning a home, however want to avoid the upkeep that goes along with a single-family home. Nevertheless, along with condo ownership come a certain set of responsibilities and challenges:
Property owners Association Fees
All condo owners must pay homeowner's association fees, also recognized as HOA fees. HOA charges 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 consequently important to not only consider the price of the condo when buying a condo, but the condo fees 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 important to not only look at the HOA fees, but to also look at the HOA's history of raising HOA charges for its condo owners, as this could indicate whether your HOA charges will increase dramatically in the years to come.
Expect, of course, to spend larger HOA fees on much 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 benefits of HOA charges, 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 cannot do. Even though most HOA restrictions are designed to advantage condo owners and property values, you may find that some HOA restrictions don't fit you or your way of life. It is consequently fairly essential to carefully read the restrictions of the HOA rules and restrictions of any condo in which you are interested.
Loss of Privacy
Although many condo buildings are designed and built in such a manner as to reduce noise from nearby neighbors, you simply will not be afforded the privacy you would get living in a single-family residence. Make sure you are comfortable with how much public space requirements to be shared amongst the residents.
Large Down Payment
Due to the many changes all through the lending industry as a outcome of the subprime mortgage crisis, and the reality that many condos severely lost their value during 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 purchase 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 advice from a lender when considering condo living.
