Real Estate Matters
By Elisa Jo Eagan
Has the idea of buying a condominium crossed your mind? There is a lot to like about condo living, including reduced maintenance obligations and ample amenities. However, living with increased regulations and being close to neighbors may not be suitable for you. Make sure to carefully consider all of the pros and cons of buying a condo and how they fit into your lifestyle.
What is a Condominium?
A condo is a private residence within a larger community. It is like an apartment, except you own the unit instead of renting it, and you can renovate or customize your space.
There are typically multiple units on each floor, and you may have neighbors above, below, or next to you. There also may be shared areas and amenities, including swimming pools, tennis courts, and fitness centers.
The Pros
Several benefits appeal to a wide range of homebuyers when it comes to condos. They give empty nesters the freedom to travel without the concerns of home security, and condos allow first-time homebuyers to own property at a lower cost than a single-family home and build equity.
Less Upkeep
A single-family home requires plenty of maintenance to keep it looking great, but a condo has many of these responsibilities covered. Most condos have a homeowners association (HOA) which is responsible for exterior maintenance like mowing the grass and snow removal, along with upkeep of the roof, building exteriors, amenities, and shared spaces. This means you will have to spend less time and effort on making the property look great.
Affordability
A report by the National Association of Realtors found that the average condo price is up to $100,000 cheaper than a single-family home. Additionally, condo insurance typically is much less expensive than homeowners insurance because you are paying for coverage of a smaller space, and you do not need insurance for the outside of your condo.
Amenities
Having facilities like a fitness center or a pool provides luxuries that you may not be able to afford in a stand-alone house. These amenities can be a great way to get to know your neighbors and to create lasting friendships. In addition to a pool or clubhouse, many condo communities hold events like game nights and barbecues, which offer great opportunities to socialize.
Security
A condo community typically has a level of security you will not find in a single-family home, such as secured entry gates or security guards to watch out for any emergencies. Additionally, having neighbors close by can provide an unofficial level of security when you are away.
The Cons
While condos will appeal to a lot of people, it isn’t the best option for everyone. Make sure to consider these points before buying a condominium.
HOA Fees
All the perks of having the additional amenities and fewer maintenance responsibilities come at a price in the form of fees. When you buy a condo, you will likely have to pay a monthly HOA fee on top of your mortgage and insurance costs. This money goes toward the upkeep of the community’s shared spaces and exterior. You may also have to pay an additional fee to use some of the amenities, but you can sometimes opt out if you will not be using them.
HOA Rules
In addition to the fees, the HOA can have a list of rules you must abide by. These will vary from community to community and may include the number of visitors you may have at one time, the type, size, and number of pets that you are allowed to have, or how you can decorate an area like a patio, which can be a little overbearing for some potential buyers. Before agreeing to buy a condo, make sure to review the HOA governing documents, master deed, and rules and regulations, and consider how any monthly fees or rules will affect your life.
Lack of Privacy
Being in closer confines than a typical neighborhood means you will sacrifice a level of privacy in a condo. Sharing walls with neighbors on both sides of your condo, and potentially above or below you, means that you may hear increased noise. Fellow condo owners may be outside or in the hallway late at night or in the early morning. Likewise, your neighbors may not be receptive to you entertaining guests or playing music.
Resale Market
You may have a limited market to appeal to if you plan to resell your condo in the future. For example, a growing family with pets may find the space restrictive and may want a home with a private yard. Others may not feel comfortable with the HOA regulations. Before you purchase a condominium, make sure you consider these factors in your decision.
If you are considering buying a condo as a summer home, a full-time residence or as an investment property, reach out to a real estate professional and ask about the individual unit’s potential resale value and overall advice about what is best for you and your future.
For More Real Estate Questions, Information and Advice Contact Elisa Jo Eagan “The Real Estate Godmother” (609)703-0432 and Remember…”There’s No Place Like Owning Your Own Home!”
