Condo sales are on the up and up, with an increase in sales of over 56% compared to last year. These types of property are an attractive option for homeowners as well as investors looking for sensible ways to spend their money.
Are you considering joining this trend toward the condo lifestyle? If so, there are a few things you need to know about owning a condo. Keep reading to discover some of them.
Owning a Condo Isn’t Always Cheaper
Condos are smaller than full-size single-family homes, and you’re only responsible for your apartment, and not the communal areas. That means the maintenance costs of owning a condo vs a house could end up a lot cheaper when it comes to things like garden maintenance.
If you buy a condo off-plan you could also benefit from a home warranty for condo owners.
This works like household insurance to save on repair costs. The main difference is that this warranty covers the workmanship on your condo. So, you’re in the clear if something breaks within a specified time frame.
Most condominiums come with a host of communal amenities such as a swimming pool, gym, or clubhouse too.
Remember, you’ll pay monthly fees for these extras whether you use them or not. So, if you aren’t going to take full advantage of the amenities, buying a condo might work out more costly in the end.
Mortgages are More Complicated When Buying a Condo
Getting a mortgage to pay for your condo depends on whether the condo you want meets the requirements of the loan you’re applying for.
For instance, FHA loans only apply to condos for sale in approved buildings. Most condos fall in line with these restrictions, but it’s important to check your lender’s requirements before you get your hopes up.
Condos Come With Rules
Condos are usually run by an HOA. That means you’ll need to follow certain restrictions and rules when you buy a condo.
Some HOAs don’t allow pets or subletting, and they also dictate what you can or can’t do to the exterior of your condo.
Make sure you know and understand all these rules, whether you’re considering a condo for rent or sale. They apply equally to homeowners and tenants.
Some HOAs are more flexible than others. Speak to some of the other tenants and homeowners in the complex to find out how far you can bend the rules.
Remember, this flexibility applies to everyone. So, if you like clarity on what’s allowed and what isn’t, you might prefer a more rigid management style.
Beyond Condo Ownership
Are you still set on the idea of owning a condo, or would you rather consider another option? At the moment, any property is hot property as real estate sales remain at an all-time high.
So whether you’re looking for an investment property or searching for your dream home, you’re bound to find something that’s ultimately going to deliver a handsome ROI.
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