Benefits And Drawbacks Of Owning A Condo
The difference from freehold houses when you opt for condos is that you are not just owning the unit but also have share ownership of the building, land, and common areas. You share the costs with fellow members of the condo association, but the property management company and board of directors make significant decisions. In this article, we will be measuring up the pros and cons of condo living.
One of the most significant benefits of condo ownership is that all the outside maintenance work is handled by someone else. This is covered by your monthly condo fees.
- Many Sizeable Costs Are Shared
A portion of condo fees must be kept in a reserve fund, by law. When a property is well managed, this reserve fund covers considerable repairs like roofing, windows, etc. without extra costs from owners. Even if the reserve fund falls short, the costs are shared equally amongst the owners.
If you enjoy living in a one or two-bedroom home or on one floor, condos enable you to own your own space as opposed to renting. Communal areas like recreation rooms and pools offer prospects for socializing with neighbors. Many condo developments accommodate specific groups like families, young professionals, or older adults.
Some condos have amenities like a gym, theatre room, swimming pool, and party room.
In comparison with renting, you are free to hang pictures, renovate, and paint the walls.
Contingent on where you choose to live, some condos are more cost-effective to own than a freehold house, and your condo fees and mortgage payments may be equal to rent. Just make sure you find out first what are Condo Fees payable monthly when you are thinking about buying a specific condo.
Condos are practical choices if you are looking for a prime living spot in the city. The advantage of living in the center of the city is that you have easy access to and from work, activities, dining, amenities, and public transportation.
Condos generally offer better security than free-standing homes or renting. Some building also provides a doorkeeper or secure entrance. It is safer to have neighbors on either side which is convenient if you travel frequently.
The potential drawbacks.
- Condo fees
Just like other forms of owning a home, the costs don’t go away once the mortgage is paid off. Monthly condo fees can vary from $200 to $600 per month depending on your location, the amenities you have and what is included in the fees.
Depending on the area where you stay, sometimes the purchase price of a condo can be higher than that of a free-standing home.
If you are treating your house as an investment, with a condo, you might not see such a high increment in value over time as opposed to buying a house. It is recommended to compare previous real estate prices in the area to see what you can expect. Besides, unlike a freehold home, significant renovations and repairs will not essentially raise the value of the property when you are selling. Even if the purchase price for a condo is lower than buying a house, the overall cost of ownership may be higher.
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