Do you wonder if purchasing a condo is right to move for you? Condo ownership may be a good way to invest without having to manage a large yard or do major repairs. Condo living does have its downsides. A condo purchase is a big decision and should be carefully considered. We’ve listed the advantages and disadvantages of buying a condo.
Condos: The Benefits
If you are looking for a smaller home or don’t have the time to maintain a large one, a condo of medium size is the right choice. For those who love to travel and enjoy their cities, a smaller home allows for more freedom.
Single-Family Homes are less expensive than single-family houses
Condos can be more affordable in bigger cities than comparable houses. This makes them less intimidating for first-time buyers. In certain cities, a condo may be more affordable than buying an apartment or renting one.
Condo owners have homeowners coverage that covers only the interior of their homes. Your monthly HOA dues will cover your building or complex. An insurance policy for a house requires coverage both inside and out. This means that your insurance rates may be lower than the required house insurance.
Amazing Sense of Community
Condo buildings and complexes often have common spaces like rooftops or patios. This allows residents to come together and get to know each other better. Many condo communities host entertaining events, such as movie nights and wine tastings, cookouts, or game nights.
The proximity to entertainment & business districts
Condo living offers many benefits. For example, condo buildings are located in or near downtown areas so that residents have great access and convenience to local entertainment and business districts. Living in a condo means you can easily walk to bars and restaurants, as well as public transit and major attractions.
Luxury condos don’t mean you have to live there. Many condos offer community spaces, such as rooftop terraces or fitness centers, that you can use with minimal upkeep. Some condos for sale tulum mexico have tennis courts or spas. You should keep in mind that the more amenities offered by condominium communities, the higher the monthly HOA (homeowners associations) fee.
You will often need to purchase appliances such as refrigerators, ovens, washers, and dryers when buying a house. Although these appliances are included in the sale, you will have to maintain them in the future to sell your house. Many condos come furnished with these appliances. Sometimes, the building maintenance can cover their repairs, which is a huge advantage.
Condos offer residents the chance to be homeowners without the hassles of yard work and snow shoveling. You only need to worry about your living spaces.
Many condo buildings have secured entrances with surveillance cameras. Some have guards or doormen to keep an eye on their property. This is especially helpful for those who live alone.
The Drawbacks of Buying A Condo
Owners of condominiums pay homeowners association dues in addition to their mortgage and property taxes. HOA fees are monthly dues that pay for community amenities, building maintenance, cleaning of common areas, laundry facilities upkeep, and other costs. These fees can range from 100 to more than 1000. These rates can sometimes rise. HOA fees may rise for several reasons:
- In the event of a major building repair, such as an elevator replacement, special assessments are made in each occupied apartment. The amount of this new repair will be added to each resident’s fees.
- Most associations will take part in your monthly payments and put them in a reserves fund. This account can be used to pay for future projects or expenses. You will have to pay for major repairs if the reserve fund is not sufficient.
No Outdoor Space
Condo ownership can have some disadvantages. Some residents may not have enough green space, which is good news. It is possible to have to walk quite a distance to find a park or playground for your kids or a large dog who needs to go outside.
Privacy is not protected
Condos have walls, much like an apartment. Your neighbors might be walking or having a party in their condo. You might also hear animals or loud TVs. You might be heard by them, too. For those who are used to living in apartments, this might not be an issue. Condo living is not the right choice for those looking to downsize from a house to a condominium.
While 85% of condominiums accept pets, certain restrictions may apply to the number, size, and breed of pets. This can be detrimental for pet owners. You might have to move your pet out if you receive too many complaints. Before you move in, be sure to read all the rules about pets.
Parking is limited
Condos are located in urban areas so parking can often be an issue. It is possible that you only have one designated parking spot for your unit. This can make it difficult for you to find a space for another vehicle, guest vehicles, or a recreational vehicle such as a boat or RV. You may also be able to park in street parking or garages, but these spaces can be very expensive and you will need to pay monthly or annual fees.
Certain Rules to Be Follow
Condominium owners are required to adhere to several rules. The Declaration of Covenants, Conditions & Restrictions, also known as CC&R, is enforced by HOA. Here are some examples of these rules:
- It is not possible to place solar panels on your rooftop.
- You are limited in the number of holiday decorations you can hang on your front door and windows.
- Parking rules include no overnight parking.
- Restricted access to community spaces, including restricted hours of access for the gym or pool.
- It is possible to enforce silence throughout the week or even on the weekends.
- There should be no smoking or drinking in the community.
Value appreciates slower than houses
Condos are only investments in living space. The condo’s value will appreciate more slowly over time. The appreciation gap between houses and condos has been closing over time. Houses have always had higher rates of appreciation over a longer period because there are more homeowners.
Lack of Storage Space
For residents who have to store items, a lack of a basement or garage or additional closets could be a problem. You may find small storage units in some condos, but that isn’t always the case. If you need more space, you may need to move or downsize. You can always rent storage units. This will make it cheaper than moving into a larger condo.