Condos, or condominiums, provide for cost-effective entry into the real estate market for all homebuyers. Beyond reasons, a decision can relate to your lifestyle goals. Due to their size, condos are ideal for smaller households and singles that have minimal requirements for distance. Real estate investors frequently seek condos, visiting them as properties that are lucrative.
Identification
A condo is an apartment which you actually own. Your different ownership rights extend detract from the inside walls and contain any balconies and doors in addition to flooring, appliances, fixtures and window treatments. All residents maintain an ownership stake in common areas, which include the building’s structure, hallwaysand exercise rooms and rooms. The condo association board is the governing body of your subdivision and construction grounds; it maintains the common areas together with your condo assessment fees, which fund general maintenance. Condo evaluations are levied according to ownership proportions; owners of bigger units cover higher fees.
Benefits
Condos are correlated with purchase prices comparative to townhouses and single-family homes. As of 2010, downtown single-family homes may cost more than $1 million, whereas nearby condos can be purchased for less than $500,000. The difference in cost relates to the land use and vertical distance overhead. High-rise condos can provide space for 1,000 residents within one city block. Single-family homes still need acreage for lawns and drives, and frequently serve fewer than five members in a household. Single-family homes need owners to spend some time and money maintaining their own landscaping, roofing and outside light fixtures. These prices often exceed a comparable allotment for condo assessments.
Considerations
Condos are ideal for young adults and retirees. Young adult singles and recently married couples frequently consider condos for first-home purchases. Young couples who have no children or baby children are not as likely to feel restricted for lack of lawn space, and young professionals that log extended hours and lead busy social lives may spend little time in your home, and prefer saving money for holidays and diversion above securing a spacious single-family home. Retirees generally appear to downsize their land holdings; they may sell their single-family homes for cash, with a few of the proceeds going toward buying a condominium., and invest the remainder to help fund their retirement.
Plan
Condos result in perfect rental properties. Successful condo investors frequently target faculty neighborhoods and hotel communities which offer a steady source of prospective tenants. Lease income will help provide for the costs of transporting the property while long-term real estate costs appreciate.
Caution
Condominium ownership carries different dangers, because of lower levels of management. Financially distressed condo owners may refuse to cover their condo assessment fees if they’re facing foreclosure. This may compel the condo board to operate at a deficit or increase evaluation on the remaining residents to maintain services. Heated exchanges and even lawsuits may arise if citizens competition board restrictions linked to decorations and Web service providers.