Condos can be a great option to gain homeownership without having to worry about all the upkeep that goes with a single-family house. The majority of condo owners benefit from shared facilities as well as the condominium association takes care of the maintenance of the building. You don't necessarily have to live there, either: If the association permits rentals it can be an excellent investment that can earn rental income. The buying process could be quite a challenge but these are the best tips for buying a condo along with the pros and negatives.
What is a condo?
Let's start with the basics. A condominium, an abbreviation for condominium, is a unit within a multi-unit structure typically a townhome or apartment (though it can also be a freestanding residence). It can be part of a large building or a smaller building.
If you're thinking about purchasing a condominium you should know what your purchase includes. Whatever the size of the property or building is the fact is that you are the owner of your personal property. Common spaces and facilities inside the building are yours to enjoy, pro rata, with other residents. It could be play areas, pools, parks and gyms as well as dog walking areas. The ground beneath the structure is also part of the. Owners of condos also have to pay their property tax, maintenance and utilities as well as the exterior of their buildings, too according to the particular community.
Five suggestions to buy a condominium in 2023
1. Consider your lifestyle
Hate to mow the lawn and trim the hedges? Do you think about the pressure washing of your driveway? Are you able to afford having to shell out $5,000 for a roofing system? If you said yes to this question, then a condo might be right for you. But if your desire for a big backyard exceeds the amount of time you'll have to maintain it, then another type of home may be more suitable. If sharing a wall flooring or ceiling to your neighbour isn't appealing, then a condominium may not be in your options.
2. Find a real estate agent that is knowledgeable of the condominium landscape
If you've made the decision that buying an apartment is the right choice for you, you'll want to locate an agent in the real estate industry who understands the details of the process, and ideally one with experience of success in condominiums. A realtor with expertise will assist you in addressing your issues and guide you through essential steps, such as reading condominium association documentation.
3. Choose the amenities that you would like to have
Condos have a variety of amenities. Other amenities could include grills, gyms and luxury amenities. While working with your realtor, think about the amenities that you would like as well as the more basic elements like budget and location. You're buying the use of these facilities when you buy your unit, so don't be shy about putting them on your wish list. Keep in mind, too, that even amenities that you do not plan to use, like a pool, for example could still be worthwhile in the sense that they will improve the potential for resale.
4. Find a FHA certified condo
A mortgage application for condominiums could be more involved in comparison to other types of properties. It is due to the fact that as well as your own financial situation, lenders will also look at the condo's construction when you request a mortgage.
You should seek the assistance of an experienced mortgage expert experienced in condominiums to help you find the best financing option for the purchase. Federal Housing Administration, which is responsible for insuring FHA mortgages, has an online database of condos FHA certified. Conventional lenders could have similar requirements to those of the FHA however, if the condominium is not FHA-approved, it could not take out a conventional mortgage either.
5. Find out more about the firm that oversees your home
It's crucial to understand who will manage the property you're buying. You want it well maintained. It is frustrating to pay association dues and then see the facilities be in disrepair and poor management can potentially affect your property's value or push your HOA fees up.
In TMW Maxwell Pricing for condos, find out the person who is responsible for running the day-today activities. Ask questions like who manages resident requests and community rules to the company that manages the property itself. You should conduct your own investigation about the reputation of the firm and also find the other projects they handle as well as talk with the board members to determine if they are satisfied about the services provided by the firm.