Owning A Condo is Such a Complex Mess
Written on June 20, 2011 by Cheryl Rankins
If you are thinking about buying a condo, then you have to understand the different issues that come with it. Buying a condo is not like buying any other house. There are different things to consider and different preparations to make in case of loans. Also, there are quite a few physical elements in a condo that are different from those of a traditional home. You will also have to get used to the idea of sharing walls with your neighbours.
Location:
You should first consider if you are even a condo type. Condos are generally located in urban areas. Many areas have included items of convenience right into the development. This means that there might be grocery stores and other businesses that will provide convenience to you. However, this would also mean that it would be a lot more congested and noisy. You should visit the location during the day and night. If the noise or bright lights do not affect you in any way then you can choose the location.
Homeowner’s Association:
If you want to live in a condo, then you will have to deal with the Homeowner’s Association. It comes along with being a condo owner. There will be restrictions, conditions and covenants that you will have to follow if you want to live there. You will be held legally accountable if your fail to comply with these conditions.
Suitability:
Condos are a good choice for first time home buyers as they would find it difficult to afford a single family house. Also, older couples might like the idea of living in a condo appealing because of the low maintenance that is required. If someone wants to live centrally in a big city, then a condo is also the right option.
Loans:
Getting a loan can be quite complex for a condo as compared to a traditional home. Lenders usually require that at least ninety percent of the units are occupied before approving the loan. Also, there are restrictions on how many units can be owned by one investor. Be careful to understand all the complexities about getting loans for condos.
Additional Costs:
There are additional costs that you will have to take into account. Be sure to read all the documentation and papers. Although the Homeowner’s Association will provide insurance but you may need to get extra coverage. Also, check carefully that you are not being made to pay extra by the Homeowner’s Association in order to lower the premiums.
Research:
Before buying a condo, make sure you check out the background history. Go to a Homeowner’s Association meeting and sit through it. Talk to the neighbours and find out if the condos are being managed properly.
Conclusion:
Investing in a condo can be a good idea. However, condos are comparatively harder to sell and buy than traditional single family homes. Before making the purchase final, check out all the loan issues. Meet with the Homeowner’s Association. And last but not the least, get a real estate agent who has experience in dealing in condos.
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