Did you know that there are over 30 million condos in the US, with new ones popping up every day? Condominiums, or condos, are one of the most viable real estate options available today. They’re super convenient, with guaranteed safety, and a lot more affordable than landed properties.

That said, everyone knows condos don’t come cheap, but if you’ve saved enough to buy a condominium, then go for it. There are many different types of condos with different amenities and prices. Before deciding on a condo, there are a few factors to consider to ensure you make the right buying decision.

In today’s post, we’ll be highlighting a couple of things you need to consider before buying a condominium.

What Is a Condominium?

A condominium, or condo, in short, is a single unit property that forms part of a collection of other similar units in a larger property.

Condos are different from apartments because, while people rent out apartments, they also buy condos. This means condo buyers remain the sole owners and custodians of their condos, while tenants rent out apartments that belong to the landlord.

Buying a condo means you’ll own your unit, but you’ll have to share amenities with your neighbors. These amenities include gyms, swimming pools, and playgrounds, among others. Condos are fit for housing entire families, but you can also buy one to be your second home.

A condo is a huge investment, and it’s important to get everything right from the get-go. There’s a lot to condo living and tons of other factors you need to keep in mind before choosing a condo to buy.

Here are a few factors to consider when buying a condo.

1. The Pros of Buying a Condo

After knowing what a condo is, your next consideration is what benefits owning a condo offers. It’s important to know all the pros and cons of buying a condo to know whether it’s a worthwhile investment. Some of these pros include:

Affordability

We already mentioned that buying a condo is much cheaper than buying an actual house. As of the second quarter of 2021, the average cost of buying a home in the US was $374,900. Compare that to the average cost of buying a condo, which is about $266,000.

This means you can save upwards of $100,000 when you opt for a condo, instead of a house. This affordability is what makes condos a popular choice for most people.

Amenities

Buying a condo gives you access to different condo amenities that you can use at your convenience. These amenities include gyms, swimming pools, and barbeque areas, among others. Although shared, these amenities are great to use and are also a short distance from your home.

A two-minute walk will see you inside the gym, starting your workout. It’s way better than driving for 15 minutes to get to the gym to start exercising.

Better Security

Most condos have round-the-clock security guarding the entire complex from intruders. This eliminates the need for installing an elaborate security system or getting a guard dog. Plus, with so many neighbors, it can be hard for burglars to pull off a successful burglary without anyone noticing them.

2. The Cons of Buying a Condo

Don’t get us wrong, condos are great, but they’re not without their downsides. It’s also important to understand the cons of owning a condo before buying one. Here are a few downsides to condo living:

More Restrictions Than Owning a House

Owning a condo means you’ll be subject to various rules and restrictions that you have to follow. Breaking any of the condo rules will result in hefty fines that are likely to hurt your pockets.

These rules are known as covenants, restrictions, or conditions. Their purpose is to ensure a comfortable stay and non-interference of condo owners with each other. These restrictions may include no loud music, no parties, and a limit on how many guests you can have at once.

The HOA Fees

Living in a condo means you’ll have to pay Homeowners’ Association fees every month. This can be a few hundred dollars to thousands of dollars, depending on the condo you buy. Condo owners pay these fees to help with maintaining amenities, making improvements, and paying for security.

It’s important to inquire about the HOA fees and any restrictions to know whether the condo is a good fit for you. If you find the HOA fees too expensive and the rules too restrictive, you’d best look for another condo.

They’re Harder to Sell

Let’s say you want to move into a bigger condo, or you want to get a new car. Selling your condo is the first thing that comes to your mind, right? However, this is easier said than done in most cases. Condos appeal to a small group of people, making them a lot harder to sell than homes.

3. The Condo’s Location

The location of the condo is arguably the most important factor to consider when buying a condo. If you’re like most people, you probably won’t live in your condo forever. Sooner or later, you’ll have to sell it and maybe move to a better one or a new house.

That said, location is an important consideration because of the condo’s long-term resale value. Are house prices in that region set to go up or do they show a downward trajectory? If it’s the latter, you might want to reconsider buying the condo.

4. The Amenities

You can think of amenities as extra perks that come with buying a condo. Take a look at what amenities the condo you’re buying has. Do you see yourself using any one of them and how often?

You want a condo with amenities that you’ll actually use. For instance, there’s no point in buying a condo with a gym when you hardly work out or a garage area if you don’t own a car. Make sure the condo’s amenities match your particular interests and hobbies.

5. The Condo’s Restrictions

Another thing you want to keep in mind when buying a condo is what kind of restrictions the condo has. Pet restrictions are one of the more common restrictions in condos. Some condos restrict specific types of pets, like larger dogs, for instance.

Some restrictions may not sit well with you, and in such cases, you’ll have to look for another condo. Go through all the condo rules so you don’t buy a place that restricts your freedom too much.

6. Size of the Condo

Before settling on a condo, make sure you find one that’s big enough for all your stuff. Inquire about the condo’s square footage to find out whether all your furniture and appliances can fit inside it. Also, consider how many people will be moving into the condo and whether there’s enough space for everyone.

Pay keen attention to this, especially if you’re buying a pre-construction condo that you can’t visit physically. There’s nothing worse than buying a condo, only to realize it won’t fit all your stuff.

7. The Reserve Funds

Reserve funds are also a critical factor to consider when picking a condo. You’ll have to pay these fees every month to help keep the condo and its amenities in pristine shape. However, if the fees are too expensive, you’re better off looking for another condo.

You can have a real estate lawyer go over the status certificate to see how well the funds are managed. This helps you know whether the HOA fees are worth paying for.

8. Special Assessment Fees

In some cases, the Homeowner’s Association may charge you special assessment fees. This will cover any major repairs and renovations that reserve funds don’t cover.

Look at how much the special assessment fee is before you buy a condo. In cases where the fee is a little too steep for your pockets, buy a different condo.

9. FHA Financing

Your options might be a tad limited if you’re borrowing an FHA loan. That’s because not all condo properties are approved for FHA loans. As such, make sure to go through the FHA’s approved list to see whether the condo qualifies.

10. The Landlord’s Condo Insurance Policy

Check what kind of insurance the landlord has for the condo you’re getting. This insurance will help recover any damage to your condo in the event of a catastrophe like a natural disaster or fire. It’s important to find a condo with a comprehensive insurance policy to protect your home and belongings in case of the unexpected.

This is especially important if you get a condo in an earthquake-prone area or a flooding zone.

Buy a Condominium Today!

If you’re looking for a new palace to call home, why not buy a condominium ASAP? As long as you keep the above in mind, you’re destined for a great buy. Also, make sure to look at all the available condos near you to pick the best one you can find.

For more informative content, check out the other posts on the site.