A condo or condominium is multi-family structure in which units are individually owned and the common areas are shared. Condos, on average, sell for a lower price than typical single-family homes.  This makes it a potential option for either first time home buyers or those looking to downsize from their current home.  When deciding whether to purchase a condo or a single family home, there are a number of things you should consider.

      1. Size

Condos can range from single bedroom and up.  Just like a single family home, you’ll find that they come in all shapes and sizes.  In general, condos tend to be smaller than single family homes because they are often built in areas where there is a need to maximize space or where real estate prices are already high.  In addition, condos usually don’t have their own backyards.

Externally, you may have potentially dozens of units to either side - above or below you. It’s important to consider your long-term plans when purchasing a condo. Special attention should be given to space so that you don’t end up raising a big family in a condo that’s built for a bachelor.

 

2. Price

Condos represent a potentially less expensive way to find yourself centrally located in major urban areas and business districts. If you want to live in an area where you might not otherwise be able to afford to purchase a single family home, then a condo may be a viable option.  Applying for a mortgage when purchasing a condo is no different than the process for a single family residence.  Just make sure to review a record of sales for similar units in the complex.  This information will be useful when you make an offer on the condo.

 

3. Association

There are different conditions that exist with the purchase of any condo to consider.  While you may own the condo, the land is owned by an association that maintains the complex.  As you are responsible for the interior of the home, the association is responsible for the exterior.  You contribute to that responsibility through an association fee.  The association fee is usually non-deductible and in addition to what you pay in your monthly mortgage payment. It  is important to take it into consideration when purchasing a condominium. 

 

4. Neighbors

Essentially living in a condo is almost like living in an apartment that you own.  It’s important to note that, just like an apartment complex, you’ll have neighbors to consider.  It’s always smart to take the time to meet some of the neighbors in the complex before making an offer.  Consider what age group seems to be prevalent and the type of neighbors you are surrounding yourself with. There is no landlord to handle disputes and issues between neighbors.

 

5. Maintenance and Improvements

Compared to a single family home, the maintenance in a condo can be minimal. Externally a majority of the maintenance is taken care of by the association. Any additions or improvements requiring construction within the condominium will more than likely need to be approved by the association.

 

6.Common Areas

Just like an apartment complex, a condo may often come with many amenities such as exercise room, pool, common lounge areas, etc.  These amenities are owned and maintained by the condominium association and are to be shared with the other neighbors.  As such, you are required to follow and obey the set rules associated with the use of the commonly referred to as CCR’s which you will be provided with when you purchase the condo. 

 

In many ways, condominiums take the best of living in an apartment complex and combine that with the joys of home ownership. However, you should always make sure that you do your due diligence in deciding whether a condominium is right for you and your family.

This has been Real Estate Rob putting you on the Inside Track to home ownership.