The Pros and Cons of Buying a Condo
The word condominium is derived from the Latin words
con and
dominium and means ownership with others. Weighing the pros and cons of condo ownership is a smart idea and depends mainly on individual preferences. Owning a condo can be very much like owning a detached home that floats high in the sky. There are, however, major differences as well. Consider the basic advantages and disadvantages of condo ownership and how much or little they will affect you.
One way to think about owning a condo is that you own an individual unit in a building in association with the owners of the other units in that building. As a result, you are responsible for the interior of your unit, but the association of owners is responsible for the exterior together. This means shared costs typically administered by the condo association.
Pros
- You often get more for your money. A detached home in the same neighborhood will usually cost at least 20 to 30 percent more. Not owning your own roof or land gives you the ability to increase your buying power. A two bedroom condo can cost 25 percent less than a two bedroom detached home and also include a swimming pool, tennis court and fully-equipped exercise room.
- You also share costs on the general maintenance and upkeep of the overall structure
- Condos can be absolutely ideal for empty nesters and those who choose not to have children. It’s easy to take off for a spur of the moment vacation when your house has a doorman to forward your mail and a maintenance man to take care of any surprise issues like busted pipes. Not all condos offer this, but many do.
Cons
- If privacy is a big issue for you, a condo may not be the ideal living situation. Depending on the construction you may be able to hear every little thing your neighbor does. Unless you can afford the top-floor, corner unit - which is the ultimate in condo privacy - you may want to go another route.
- Condos are notoriously complex, both financially and legally. You have to be up for a serious study session when you’re considering a condo purchase. There are many important documents to peruse before making any purchase decisions. The articles of incorporation, bylaws, declaration of covenants, conditions and restrictions and the house regulations should all be obtained and poured over intently.
- Typically, condos also require "association dues" or other types of fees through which the condo association pays for maintenance and other shared costs on the general building structure. They can be a pain, but remember that if you owned the entire building, you'd still have to pay for these things on your own.
The pros and cons will vary somewhat depending on your situation and the condo your are looking at. What may be an advantage to some may be a disadvantage to others. Careful research can help make sure you make the best decision for you.