Pros And Cons Of Buying A Condo
The cleaning and maintenance staff takes care of the hallways, entrances and common areas of the building, so you only have to worry about your personal space. Other common options include apartments, houses, apartments and townhouses. Finally, an apartment isn’t always as easy to sell as a home, especially if yours comes with higher than average HOA rates or if your condo sign has strict rules for your condo community. For example, if your resort doesn’t allow young children, you’ll lose a subset of potential buyers. Condos are all the rage in places with high property values – holiday hotspots and urban environments are places where you can expect a lot of them. This is mainly because buying a single-family home can be prohibitively expensive in cities and towns where additional building space may be scarce.
In addition, you have to pay maintenance costs for the common areas. According to the National Association of Realtors, the average selling price of a single-family home in August 2018 was about $260,000. Condos generally have a lower average selling price, about $248,200, according to the NAR. Depending on the region and the community, the asking price can be dramatically lower than with a single-family home. So if you want to dive into homeownership on a tighter budget, an apartment can be a great first step.
If you buy an apartment, you need to take into account the long-term costs. In addition to the regular HOA fee, special assessments are a common piccadilly grand way for HOAs to raise funds for large projects. For example, if the building needs a new roof, it could be hooked for thousands of dollars.
Be sure to evaluate your financial position and select a property that fits your budget. That’s partly because apartments are generally smaller than homes and apartments, but also because rents are generally lower than typical home payments in most markets. Some people put off homeownership because they don’t want the hassle of maintaining a home. One advantage of buying an apartment is that the land around your home is usually maintained by a condo association. Apartments are usually smaller than single-family homes and offer square footage similar to an apartment.
Non-compliance can mean you could be fined, forced to comply, or even charged. Make sure the HOA is a well-managed fund that has set aside sufficient reserve costs for long- and short-term projects and emergency maintenance. Mismanaged funds can result in a special appraisal fee that all condo owners would have to pay. The price of apartments per square foot can be higher than single-family homes. Often what you pay for with an apartment is convenience and location. Your mortgage payment may increase when all things are considered.
Buying an apartment can be a great option, whether you’re starting a family or escaping empty nest syndrome. There are some important questions to ask before buying an apartment and as many disadvantages as advantages. Condos offer residents the opportunity to take on homeownership without the hassle of yard work, snow shovel or home repairs. Building corridors, entrances and common areas are also staffed by cleaning or maintenance staff, so you just have to worry about your living space.