Following are answers to some of the most commonly asked questions concerning buying a condominium
What Does Condominium Ownership Consist Of?
Typically, a condo consists of a private living space much like an apartment. One owns the space from the walls in. One also owns a share or percentage of the limited common areas such as hallways, elevators, lobby, pool, garage, grounds, roof, etc. Parking and storage may or may not be deeded specifically to the unit. One also becomes a member in the Condominium Homeowner’s Association.
Who Buys Condominiums?
Lots of people! Here are some major profiles of the various Condominium Buyers:
First Time Buyers
Condos appeal to the First Time Buyer who may not be able to afford a house. Prices for studios average around $150,000, 1 bedroom condos around the city average around $175,000-$200,000. 2 bedrooms average around $250,000-$300,000. Down payments can be as low as 0-5% down, so buyers can purchase with a minimum amount of cash.
Another group of condo buyers consists of people who may be downsizing. These are people whose children have grown and they don’t need the 4 bedroom house anymore. They are looking to move away from yard work or spending a summer weekend painting the outside of the house. They have money and can afford to buy a very spacious, nicely finished condo and save themselves all of the hard work.
The Condo Lifestyle
Another group of condo buyers consists of people in all price ranges who just aren’t suited to living in a house, and would prefer to live the condo lifestyle. They tend to be very busy, active professional people, and they choose to buy into an urban lifestyle. Many city dwellers living in the high-rise condos downtown fit this profile. They live, work, and play in the city.
The last major group of condo buyers are those buying condos for investments. There are many tax advantages to owning a condo and renting it out. Check with your Accountant or CPA regarding the advantages of owning a condo for your personal financial situation.
Of course, some of these groups overlap.