Condos, short for condominiums, are great options for those looking for amenities like gyms and pools without having to worry about the maintenance of a traditional home. Though condos are helpful for keeping living expenses low compared to other options, there is still information you should know before committing to one.
1. HOA fees
Image by Thomas Breher from Pixabay.
These fees typically range from around $100 or more per month. These fees take care of paying for amenities such as gyms, landscaping, and more. In the future, these fees may even skyrocket due to their reserves running low (less than 25 percent) according to Investopedia. So, getting an understanding of how the reserves are run and the possibility of getting an assessment can give you an idea of what your fees could look like.
2. Insurance
Image by Steve Buissinne from Pixabay.
Occasionally, insurance rates for condos can be as high as traditional single-family style homes yet don’t cover as much as homeowners insurance. For example, condo insurance typically only covers in-unit and personal belongings; nothing for the structuring of the condo compared to traditional homes. Renters also pay if anything is damaged such as utilities, building structure, and more which can drastically increase overtime.
3. Close proximity to neighbors
Image by Mabel Amber, who will one day from Pixabay.
While living in a condominium, you may be living close to neighbors and sharing spaces. This is something to take into consideration when deciding how your lifestyle may fit well in the environment and vice versa. Despite the community aspect, you don’t get a say in who your neighbors are, so this is something to think about before signing those papers.
4. Value
The value that you pay for a condo may increase or decrease in the future. To stay in the know of what the property value is like and any fluctuations, checking websites like Zillow.com give you an idea of when the property was last sold, what the area is like, and more. Be sure to conduct thorough research before settling on your dream condo.
5. Amenities and rules
Image by Gerd Altmann from Pixabay.
Before deciding on a condo, make sure that you get the amenities you want for the price you’re paying and understand the rules of the HOA. Some condos come with pools, hot-tubs, free parking, and more as Better explains. On the other hand, there are rules that you should be aware of like does the condo allow pets or renovations.
Conclusion
To wrap things up, remember to ask questions about the HOA’s reserves, amenities, rules and research what the value of the property is like, and try to predict if it’ll be a smart future investment. Further, understanding the HOA fees, insurance, and more is essential before buying a condo.
For more insights on real estate investment, tune in to my podcast, Black Real Estate Dialogue, available on YouTube, Apple Podcasts, and Spotify.
Freebies
Free Out of State Investing Training -
https://www.outofstatemoney.com/
8 Steps to Buying Out of State -
https://www.outofstatemoney.com/long-distance-investing-guide
The Remote Landlord’s Toolkit - https://www.outofstatemoney.com/remotelandlordtoolkit
The Creative Financing Playbook - https://www.outofstatemoney.com/creativefinancingplaybook