Buying a Condo
Homeownership certainly has a number of benefits, from the tax advantages to the equity you’ll build in your property. However, the maintenance and upkeep that a traditional single family home requires isn’t for everyone. If you don’t want to spend your weekends on yard work or repairs, why not think about a condo?
Pros of Condos
As a condo owner, your liability is limited to the interior of your unit – the structure of your building and all exterior spaces are owned communally by the home owners’ association (HOA). This means that costs of repairs – like a new roof or siding – are shared by members of the association, instead of completely on you. While you’ll still be required to pay for interior improvements and repairs, your overall costs will be much lower than with a standalone home.
But lower repair bills aren’t the only advantage to condo ownership. In addition, your complex may offer community facilities – like a pool, gym or clubhouse – onsite for you to use, free of charge. Your monthly bills may also be lower than single family homes, as shared condo walls cut down on heat and cooling expenses. Finally, condo complexes offer a sense of community you won’t find in your own home – if you’re ever feeling lonely, your neighbors and friends are just a wall away.
What you need to be aware of with condo ownership
Of course, there are some downsides to condo ownership. Let’s take a look at a few of them:
1. Fees for HOAs
Although you aren’t responsible for many traditional homeowner tasks, you aren’t off the hook altogether. You’ll have to pay monthly dues to a home owner’s association, which covers upkeep on common areas along with mortgage payments and taxes. The size of the fee depends on the association and the level of service it provides, but in most cases, you can expect to pay between $ 100-400 per month to the HOA.
2. Rules and Covenants
When you buy a condo, you agree to abide by the rules and covenants set forth by the HOA. These may include such things as how you’re allowed to decorate your home, how much noise you can make and whether or not you can rent out your condo in the future. Breaking these rules can result in penalties or fines, and a strict HOA board can make your life miserable if you aren’t prepared to abide by them. Essentially, if you want the freedom to choose what color you can paint the walls you own, think about buying a condo first.
3. Resale Values
Traditionally, condos appreciate less in value than single family homes and often take longer on the market to sell. This isn’t always the case – condos in desirable neighborhoods can turn over quite quickly – but you should be prepared to wait a little longer than normal when it comes time to sell. If you’re concerned with resale values, do your homework to figure out if a condo is that option that makes the most sense to you.
