The popularity of condominiums continues to surge. Last year posted record-breaking sales of condominiums, and this year is well on track to beat those numbers. Many buyers are realizing that condominium homes can be a great way to enjoy the financial benefits of home ownership combined with extensive amenities and a low-maintenance lifestyle.
Increasingly, condominiums are not just for first-time buyers looking for a less expensive entry into the housing market. Empty-nesters and retirees are happy to give up mowing the lawn and painting the house. Busy professionals can experience luxury living knowing their home is safe and well-maintained while they’re away on business. And sales of vacation condominiums are at an all-time high. If you’re considering buying a condominium home, here are a few things you should know.
Condominium Basics
With condominiums, you own everything in your unit on your side of the walls. Individual owners hold title to the condominium unit only, not the land beneath the unit. All owners share title to the common areas: the grounds, lobby, halls, parking areas and other amenities. A homeowners’ association (HOA) usually manages the complex and collects a monthly fee from all condominium owners to pay for the operation and maintenance of the property. These fees may include such items as insurance, landscape and grounds upkeep, pool maintenance, security and administrative costs.
With condominiums, you own everything in your unit on your side of the walls. Individual owners hold title to the condominium unit only, not the land beneath the unit. All owners share title to the common areas: the grounds, lobby, halls, parking areas and other amenities. A homeowners’ association (HOA) usually manages the complex and collects a monthly fee from all condominium owners to pay for the operation and maintenance of the property. These fees may include such items as insurance, landscape and grounds upkeep, pool maintenance, security and administrative costs.
The owners of the units in a condominium are all automatic members of the condominium association. The association is run by a volunteer Board of Directors, who manage the operation and upkeep of the property. A professional management company may also be involved in assisting the board in their decisions. The condominium association also administers rules and regulations designed to ensure safety and maintain the value of your investment. Examples include whether or not pets are allowed and the hours of use for condominium facilities such as pools and work-out rooms. Should a major expense occur, all owners are responsible for paying their share of the expense.
The pros and cons of condominium living
The condominium lifestyle has many benefits, but condominium ownership isn’t for everyone. Part of it depends on your lifestyle. Condominium living may not be optimum for large families with active kids. The other factor is personal style. By necessity, condominium associations have a number of standardized rules. You need to decide whether these regulations work for you or not. Here are some points to keep in mind if you’re considering condominium living.
The condominium lifestyle has many benefits, but condominium ownership isn’t for everyone. Part of it depends on your lifestyle. Condominium living may not be optimum for large families with active kids. The other factor is personal style. By necessity, condominium associations have a number of standardized rules. You need to decide whether these regulations work for you or not. Here are some points to keep in mind if you’re considering condominium living.
· Cost—Condominium homes typically cost less than houses, so they’re a great choice for first-time buyers. However, because condominiums are concentrated in more expensive locations, and sizes are generally smaller than a comparable single-family home, the price per square foot for condominiums is higher.
· Convenience—People who love living in condominiums always cite the convenience factor. It’s nice to have someone else take care of landscaping, upkeep and security. Condominium homes are often located in urban areas where restaurants, groceries and entertainment are just a short walk away.
· Privacy—Since you share common walls and floors with other condominium owners, there is less privacy than what you’d expect in a single-family detached home. While condominiums are built with noise abatement features, you may still occasionally hear the sound of your neighbors.
· Luxury amenities—Many condominiums offer wonderful amenities that the majority of homeowners couldn’t afford on their own, such as fitness centers, clubhouses, wine cellars, roof-top decks and swimming pools. Lobbies of upscale condominiums can rival those of four-star hotels, making a great impression on guests.
· Space—With the exception of very high-end units, condominiums are generally smaller than single-family homes. That means less storage space and often, smaller rooms. The patios and balconies of individual units are usually much smaller as well.
· Autonomy—As a condominium owner, you are required to follow the laws of the association. That means giving up a certain amount of control and getting involved in the group decision-making process. Laws vary greatly from property to property, and some people may find certain rules too restrictive. If you long to paint your front door red or decorate your deck with tiki lanterns, condominium living might not be for you.
Things to consider when you decide to buy
Condominium homes vary from intimate studios to eclectic lofts to luxury penthouses. The right condominium is the one that best fits your lifestyle. Here are a few questions to ask to determine which condominium is right for you.
Condominium homes vary from intimate studios to eclectic lofts to luxury penthouses. The right condominium is the one that best fits your lifestyle. Here are a few questions to ask to determine which condominium is right for you.
How will you use it?
Will your condominium be your primary residence? A second home? An investment property? While a studio may be too small for a primary residence, it might be a perfect beachfront getaway for you and your spouse. Also consider how your lifestyle may change over the next five years. If you’re close to retirement, you may want to have the option of turning your vacation condominium into your permanent home.
Will your condominium be your primary residence? A second home? An investment property? While a studio may be too small for a primary residence, it might be a perfect beachfront getaway for you and your spouse. Also consider how your lifestyle may change over the next five years. If you’re close to retirement, you may want to have the option of turning your vacation condominium into your permanent home.
Where would you love to live?
Some people love the excitement and sophistication of urban living. Others dream of skiing every weekend. Whether it’s the sound of the surf or the lure of the golf course, a condominium home affords you the ability to live a carefree lifestyle in virtually any setting.
Some people love the excitement and sophistication of urban living. Others dream of skiing every weekend. Whether it’s the sound of the surf or the lure of the golf course, a condominium home affords you the ability to live a carefree lifestyle in virtually any setting.
What amenities are most important to you?
The variety of condominium amenities increases each year. Decide what you want, and you can be assured of finding it. Most urban and resort condominiums have an enticing array of extras, from spas to movie screening rooms to tennis courts.
The variety of condominium amenities increases each year. Decide what you want, and you can be assured of finding it. Most urban and resort condominiums have an enticing array of extras, from spas to movie screening rooms to tennis courts.
What are your specific needs?
Do you have a pet? Some associations don’t allow them; others have limitations on their size. Parking can be a major issue, especially in dense, urban areas. How many spaces do you get per unit? Do you pay extra if you have more vehicles?
Do you have a pet? Some associations don’t allow them; others have limitations on their size. Parking can be a major issue, especially in dense, urban areas. How many spaces do you get per unit? Do you pay extra if you have more vehicles?
Finally, once you’ve found a property you like, examine the association’s declaration, rules and bylaws to make sure they fit your needs. The association will provide you with an outline of their monthly fees and exactly what they cover so you can accurately budget your expenses.
Review the association board’s meeting minutes from the past year to get an idea of any issues the association is working on. An analysis of sales demand and property appreciation compared to like units may help ensure that you make the best possible investment.
