Condominiums Great Homes or Investments
A condominium or sometimes called condo is both individual owned and common interest owned. There are parts of the property owned individually, many times called units. There are parts of the property owned in common with all the other owners.
Usage of the common areas should be for all residents. Common areas may include recreation facilities, outdoor space, parking, landscaping, fences, laundry rooms and all other jointly used space. The homeowners' association, cooperative board or condo association collects assessments from the owners and pays for upkeep, insurance, maintenance and reserves for replacement of improvements in the common area.
Due diligence is a process that serves to confirm all material facts in regards to a sale. When considering a condominium, the common area uses is a very important thing to understand. Do not assume. Check out the details in each condo that is under consideration.
Due diligence is also needed for the condo’s finances. Also, the rules the condo organization has for an investment. Many associations do not allow rentals or severely limit the number of units that may be rented. One of the reasons why is if too great a percentage of the total units are rentals, the condo can lose FHA and conforming eligibility, which makes financing them very difficult.
Some of the benefits of buying a condominium are affordability. Condos are often priced lower than single-family homes. Condominiums can be a great first investment property or first home.
Next is one of the biggest benefits of owning a condo. The condominium does the maintenance. They cut the grass and maintain the grounds; they fix the roof and many more upkeep issues.
Another compelling reason to own a condo is its amenities. Many condo communities offer residents amenities that are out of reach for the average homeowner. A pool that the association maintains is a great benefit. Some condos have a fitness center and clubhouses.
Some condos offer security which could be another benefit of condo ownership. Many condos have gated or locked entries, doormen, or even security professionals for residents.
Owning a condo costs money. Understand the cost of HOA dues and any other payments or fees the condominium expects. Know what the money pays for and does not pay. These can save many headaches in the future.