An Overview of Condos

Condos are residential buildings made of multiple units, often consisting of apartments or condos. A condominium is usually a separate building construction surrounded by several individually owned units, all privately owned. In contrast to a single family home, condos have more shared ownership. Condos may be built on sites with ample access for automobiles, while single-family homes may be built on small lots with few access points for automobiles. Condos and townhouses are usually built as for-sale residential properties rather than as investment properties. One type of condominium association is usually a fee simple or a limited partnership, sometimes called a limited liability association.

Condos are made for the sole use of the individual resident. Condos have common areas such as hallways, elevators, and laundry facilities. Amenities such as washers and dryers are also common in most condos. Many condos offer common areas, dining, pool tables, gyms, and workout areas. If a condo offers common areas, it might be a better option for those who want to live in a condo and enjoy the common areas, but do not want the extra maintenance.

Condos can be bought from a private seller or through a public buying program, which require financing. Private sellers require higher financing costs because they have to consider possible personal liability from a buyer who becomes dissatisfied with the condition of the unit. The purchase of condos through public financing requires lower interest rates, as well as shorter closing costs. Both programs help buyers get lower interest rates for a longer period of time, although in some cases; condos require more financing than co-ops. Depending on the type of financing used and the amount available, buyers of condos may be able to finance their condos for a longer period of time than buyers of co-ops.

Condos can provide homeowners a way to buy property without dealing with the hassle of managing a neighborhood. Most buyers of condos prefer to live in condos, especially if they prefer a low-maintenance lifestyle. A condominium owner is responsible for all property management costs, including building maintenance and security. In addition, if a unit gets damaged, the owner must hire a repair person to fix it. As compared to purchasing a single-family home, buying a condo can be less expensive in the long run.

Leonsard says he believes condos will continue to gain in popularity as home prices rise. “I think the next five years will show that condos are here to stay and we should expect that price increases will continue to occur at a steady rate.” He adds that when renting, “a renter is only responsible for the maintenance of the property and any repairs that need to be done, which may include roof repairs.” Renters also need insurance, cleaning, repairs and routine maintenance, which many tenants find difficult to afford on their own.

Leonsard believes there are several benefits of owning condos. One benefit is that you don’t have to pay maintenance fees. When a home owner doesn’t maintain their home, they are charged for those services. But when you own a condo, “you don’t have to pay for anything,” he says.

Leonsard says owning a condo is beneficial because you won’t have to worry about maintenance and pest control as much as if you rent. However, he cautions “that you should be careful not to let your condo get into bad hands, as there are people who prey upon subletting condos.” Another advantage of owning a condo is the lower closing costs. Leonsard says that many condos have extremely low closing costs, and some even offer free add-on features, such as landscaping and snow removal. This means that your monthly payment doesn’t go very far when it comes time to buy a home.

Whether you decide to rent or buy a condo, both choices have their pros and cons. But before deciding, you need to research all your options. Researching the pros and cons of owning condos, co-ops, and traditional homes can help you make the best choice for you. And, most important, be sure to check out your local real estate market. It’s best to pick a home that suits your needs and one that has a good chance of being successful.