There are several reasons why aspiring homeowners prefer condos over regular housing. For one, they incur fewer maintenance costs and are fairly affordable. We can examine some of the merits and demerits of living in a condo, particularly the financial part.
Definition of a Condo
Derived from the name condominium, we can define a condo as a private residential unit within a given community or project. Apart from being an apartment-like, the residences often share walls. If not, they are semi-detached in a similar design to townhouses.
All residences share common amenities, such as swimming pools or yards. This also applies to some internal communal facilities such as garages or laundry rooms.
There are two types that stand out. Those that can be converted into rental apartments and the regular ones. When unable to see the difference, it won’t matter on future values. The transformed model might be the cheaper option provided the repairs and upkeep are maintained to a minimum.
An integral part of living in condominiums is the associations which are run by a board. The association is responsible for managing all common areas, particularly amenities and services. The residents pay a quarterly and monthly fee to these associations.
To make an understandable comparison, a buyer should compare the fee paid upfront to the HOA. This amount can then be equated to an increase in mortgage payment. Weigh the interest rate charges and the principal sum figures and find out whether you are better placed buying a home instead.
Usually, the price is dictated by the amenities present offered by the association. If the fee pays for services, such as trash collection or water, you will still incur these costs if you purchased a house instead.
Some of the advantages of buying condos are their unique features. If you fancy a home with stainless appliances, open floor plan, granite countertops, or an open door plan, the new units are what you are looking for.
Alternatively, luxurious amenities, such as a clubhouse, spa area, jogging trail, tennis court, among others are common. You can always count on the security services offered. In addition to adequately staffed guards, you can expect sophisticated security systems.
Residing in a home without having to worry about upkeep and maintenance is great. All aspect of upkeep from raking leaves, lawn care, or replacing broken windows are covered.
Most of the drawbacks of living in a condo are a testament to communal living everywhere. Living close to a neighbor can mean close sounds or smells. The fees tend to be on the rise always. An older building will require more repairs and maintenance which translates into higher fees.
Sometimes, there are also strict codes that need to be adhered to. This means that all tenants might adhere to certain rules of conduct while residing in the unit.
Finally, when compared to a regular house, a condo is much smaller. A house has extra room for a private garden or patio space, which is hard to find in a condo.