An excellent option to become a homeowner without having to worry about the maintenance required of single-family homes is to purchase a condo. Additionally, condo residents frequently have access to shared amenities, and building upkeep is handled by the condo association. Furthermore, you do not need to reside there: Condominiums can be excellent investments for generating rental earnings, if the community allows rentals. Here is our top condo-buying advice, before you buy a condo. The purchasing process might be a little complex, though.
What is a Condo ?
Start by going over the fundamentals. Condos are mutiple buildings with typically apartments or townhomes as its units, while the term can also be used to refer to independent dwellings. It might be one of many apartments in a big shared building, such as a high-rise skyscraper, or it may be in a relatively smaller walk-up structure with only two or three units.
It’s important to know what your purchase entails if you’re considering purchasing a condo. No matter how huge the structure or property is, each individual unit belongs to you. Along with your neighbours, you also own a proportionate amount of the community’s common areas and amenities, which may include parks, swimming pools, playgrounds, fitness centres, dog parks, and other public places. This includes the ground beneath the building as well. Depending on the neighbourhood, condo owners may also be responsible for paying their own utilities, upkeep, and property taxes.
5 Important Things to look for while Buying a Condo
Here are five important things to consider while buying a condo :-
They claim that “location, location, and location” are the three most important real estate factors. You ought to think about your condo’s future potential for sale because you most likely won’t live there indefinitely.
The things that people adore so much are known as amenities. A gym, party area, swimming pool, concierge, guest suites, and visitor parking are a few examples of amenities. Evaluate the amenities provided by the building and determine if you’ll use them successfully. Take into consideration that, typically, the more features there are, the higher the condo costs.
The degree of freedom related to condo living is typically lower compared to that of owning a house. Resident restrictions are prevalent in condos. Restrictions on pets are common. For instance, you might only be permitted to have a small dog or dogs can be totally prohibited. In addition, you might not be allowed to renovate without permission. Make sure you are aware of these guidelines in advance so that you are not taken off guard.
Make sure the reserve fund has sufficient funds in it to prevent the chance of your condominium costs increasing. The reserve fund is used for major costs like paving the parking lot, replacing the roofing, and making repairs to amenities. To make sure that the reserve fund has been properly managed, your real estate lawyer should verify the status certificate.
Lastly, keep in mind that when purchasing a condo, size counts. Check that the furniture from your present residence will fit in your new condo by checking out the square footage. This is important if buying pre-construction real estate because you can’t actually enter the unit.
Are condominiums a viable investment for first-time purchasers and professional investors?
Yes! A condo may be a particularly alluring choice for first-time homebuyers. The apparent benefit is the cheaper price, but if you’ve been renting, you may also be accustomed to condo-style living, so you may continue to live that way while still accumulating equity.
Condos can make excellent long-term investment prospects; they are not simply for individuals with little funds or who intend to sell soon. A condo can be rented out as a rental home where you find renters to sign yearly leases, or you might think about doing short-term rentals.
A more affordable approach to become a homeowner without the same level of upkeep as a single-family home is to purchase a condo. Given their more reasonable prices and possibilities for rental income, they are also fantastic choices for investors or first-time homebuyers. However, because housing prices are expected to stay high in 2023, buying a condo is probably going to cost a little bit more than you originally planned.
Condo purchases might feel just as competitive in some locales as single-family home purchases. Be flexible while evaluating different characteristics and consider both must-haves and nice-to-haves. Engage a condo-focused real estate expert to help you with your home search and to represent your interests at all times.