Out of all the different types of housing options available today, buying a condo makes a lot of sense for many people. Many people want to sell a large home and purchase a condo to downsize and retire somewhere warm. Others may want to buy a waterfront condo someplace tropical to enjoy on vacations.
Or maybe you are just looking to buy your first home and the affordability of condos makes sense. Being able to own a condo unit within a larger building can offer some great benefits you may not have thought about before. Moreover, most condos are approved for FHA loans and low interest rate mortgages.
Let’s explore why buying a condo has become such a popular option among people looking to purchase real estate this year.
What is a Condo?
A condo or condominium is simply a building or complex of buildings containing any number of individually owned apartments. Some buildings are multi-level and offer many floors of condo units. Others are luxurious waterfront condo buildings that provide the perfect location to maintain a luxurious lifestyle in the most in-demand real estate. Still, other condo buildings are created to offer affordable housing to many people.
What Are the Benefits of Buying a Condo?
You might think that affordability is the only benefit to buying a condo these days. However, there are many benefits to condo living that aren’t obvious at first glance. While condos make owning a property more affordable, they also offer residents on-site amenities such as a swimming pool, fitness centre, beachfront volleyball, restaurants, billiards rooms and more.
More expensive, luxury condos for sale provide full concierge services to owners and their guests. In addition, they offer pool service, cabana service and even beach-side drinks brought to your beach chair and served ice cold.
Condominiums are run by a Condominium Association (COA) that charges residents a monthly fee. These fees cover the costs for maintaining the building’s common areas, lawn care costs, pool maintenance and anything else needed to make residents’ lives easier.
If you buy a condo, you won’t need to do anything but care for the interior of your unit. Everything outside your apartment is taken care of by the COA completely. And what a great way to make new friends! The opportunity for socialization is quite valuable to many.
The number one reason people buy condos is for the affordability factor. You can own a condo for much less than a single-family home, and often slightly less than a townhouse.
However, when you are considering buying a condo, it is paramount to make sure you understand the total monthly costs and COA fees. Some condos have monthly fees so high that will blow your mind for one reason or another.
In some cases, the condo building, itself, may have needed major repairs or a new roof, which is very pricey, indeed. The costs for such repairs would be split by the number of condo owners there are, and then billed as a monthly assessment fee.
It is highly recommended that you consult a licensed Realtor who is familiar with the condo buildings you are interested in. This way, you won’t be blindsided by anything that may not be apparent at face value.
Ease of Ownership
As forementioned, the COA takes care of the exterior of the building, making condo ownership easy for just about anyone to handle. Even if you wish to rent your condo out for the season or annual leases, the COA can help.
Many snowbirds or anyone who moves to warm climates during the wintertime, can enjoy owning a condo that they use for six months out of the year, and then rent the condo out to cover costs for the remaining 6 months. It can be a win, win!
Condos are a Great Investment
In addition to being a wonderful value, condos are also a good long-term investment since real estate generally appreciates in value over time. As mentioned, many buildings allow you to rent your apartment out to offset the yearly cost of ownership.
In essence, you could buy a condo as an investment, rent it for the first few years until you’re ready to move in permanently, yourself. At that time, you will have paid down the mortgage and built yourself some equity that becomes a part of your overall wealth and assets.
Wrapping it Up
Hopefully, this helps you understand the great value that condos offer. Many people have already taken advantage of buying a condo for their vacation home, in their favourite destination city. The apartment will serve them well for years and years to come, and will hopefully go up in value, just as the housing markets tend to do.
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