In a Condo some parts - your residence - are possessed privately, while others - common areas - are held collectively by all of the Condo's residents.
Condos are particularly popular in places with high property values - vacation hot spots and urban settings are both locations where you can imagine to find them on the market. This is largely because purchasing a single-family home can be excessively expensive in places where extra building space may be limited. As such, condos can open home ownership to whole new groups of people. Subsequently, if you're eager to own your own home, but can't quite afford a house, a Condo could be a method for you to get into the market.
- Condos for sale and contracts
It's not just the sales contract that you have to consider when you're buying a condo; condos also have an agreement, or testimony, that dictates the way the Condo operates and is governed. Prior to buying your condo, you should inquire and read the documents that apply to the management of the complex. Just what are the hot issues for this complex? How big is the Condo's reserve funding? How does management deal with owners' requirements and problems? Does the Condo enforce strict rules and guidelines on owners that you would be unsatisfied with? You need to get a sense of whether the Condo you are taking into consideration is well run, whether the rules and constraints would allow you live the lifestyle you're seeking and whether the building/complex is suffering from any problems that could hurt the value of your share of ownership in the forthcoming future.
There are lots of reasons that a condo may be a better fit than an flat or single home, and money is certainly one of them. According to The Real Estate Journal, condo prices have a tendency to appreciate at a slower rate than single-family dwellings, making them a more inexpensive choice in markets where prices are on the rise. And, compared to renting an apartment, because you actually own your condo, you can take advantage of tax deductions such as the interest on your mortgage.
On the other hand, it's important to remember that the purchase price isn't the only thing to give consideration to when you're buying a condo. Most co-ops and condos have monthly fees for routine maintenance of the common property (these can be costly) and, unlike paying rental fees for an apartment, you'll have to pay property taxes, too.
If you're thinking about buying real estate, irrespective of whether you are an investor, vacationer or year-round resident, condos are without any doubt something that should be on the radar. This is most definitely true if you're looking at an area where real estate is very expensive. Condos aren't naturally better or worse than any other type of residence, but primarily based on your situation, a condo or co-op could be a very good choice as a home buyer.