The decision of becoming a homeowner is a crucial step for most of us. This important life choice should not be handled simply and effortlessly since actions like these are highly significant and will also influence the future you are looking into. Deciding on which direction you take on these normally-occurring life choices is difficult but at the same time, can be controllable through exerting time and effort on deliberately thinking about the existing causes and incoming consequences. Determining which kind of property to buy and settle in is especially challenging because of the must considered factors, from the smallest details and into the largest and obvious aspects. Few examples of these factors are the geographical location of the property, the cost of living as well as the cost of the property, age of the property, property kind and size, and many others. Unsurprisingly, these factors have their own sub-factors that must also be pinpointed in order to achieve a successful feat in becoming a homeowner, as a first timer or not.
Residential property examples such as single property homes, townhomes, condominiums and others are offered to the buyers in the real estate sector. These kinds of properties have their own advantages and disadvantages and these aspects depend on the point of view of every prospective buyer that is planning to reside on them.
Condominium Investment
The most considered residential properties by potential homeowners are single property homes which can be both a house and lot, or a condominium unit. A condominium is usually a building or a group of buildings that contains a number of spaces for a home that are owned separately. The individual spaces that are inside the condominium are called a condominium unit. While the space inside each condo unit is owned by its respective owner, each and every one of them is sharing an ownership for the community property and examples of these are the walls between the units, corresponding floors and ceilings, walkways, and other exterior spaces such as available park spaces, garages, outdoor pools and other amenities. There are also classifications of condominium buildings, it can be low-rise, mid-rise and high-rise. Condominiums are also not limited to residential spaces and can also be leased as office spaces or commercial stores.
Committing into being a homeowner is very special and fulfilling, but like all engagements and transactions in real estate, this investment comes with a hefty price. Taking that large sum into account, an interested buyer should not just be careful on addressing the deal but also be further diligent into the crucial details. Here are the pros and cons of buying a condominium unit.
PROS
Suitable Location
Most condominium buildings or complexes are conveniently located in substantial and developed areas. Urban areas such as these typically consist of shopping centers, restaurants, marketplaces, convenience stores, hospitals, universities or schools, transport hubs and many other establishments that can be significant depending on your lifestyle. Some condominiums are located near business zones, making it a commendable investment to professionals inclined to work in the respective field. While a person’s preference for a suitable location varies depending on their necessities, like being particularly close to a school or a workplace, it is really important to contemplate whether that presumed condo location can achieve their general expectations. So, the freedom of choosing a condominium that satisfies your proximity area necessities will never be a bad thing.
Developed Amenities
Condominium properties provide areas such as outdoor pools, fitness gyms, playgrounds, function halls, sports facilities, pet centers, common areas, and other recreational spaces. These selected and wide range of amenities help in the exclusivity and authenticity of a condominium making it different to other offered residential properties in the market. Also, these amenities promote social activities in the neighborhood or community, engaging in these activities can really be an advantage if you find socializing fun and enjoyable.
Advanced Security Systems
Not all neighborhoods can offer security systems with full functional CCTV (closed-circuit television) cameras that can prevent crime and malicious incidents, automatic door-lock entries, a closer proximity of security professionals, and other safety systems. Many condominiums are equipped with these safety measures to avoid crimes and to ensure the safety of the community. A condominium can also possibly provide a sense of safety and tighter security of each person in the residence because of the natural construct of a condominium building, every unit is close to each other resulting in also being close to many other people that can be of help in emergency situations. Tighter security and a condo unit being close to other units will also be a big help if you are a travel enthusiast, it is safer to leave your home and expect it to be still in the same shape when you return.
Low Maintenance
A condo unit is way less in need of maintenance compared to single-family houses that can maybe have a garage or a lawn. Condo unit owners are free from the stress of heavily maintaining their homes with the help of the maintenance staff provided by the condominium management. This service is greatly beneficial for those people whose lifestyles contain a busy and immersed schedule. A condominium homeowner is sure to have a bunch of free time to spend instead of fixing whatever the problem and inconvenience is.
More Affordability
Compared to single-family homes that both have the house and lot in the title, condo units are unexpectedly to have a lower and cheaper price tag. Depending on the general location of the condominium, the starting price can be priced lower than usual. Commonly, condominium complexes in affluent and well-off areas are priced higher than those of other distinct locations, but this is not a hinder to find cheaper and still high satisfaction rates for a buyer. Condominiums are also priced generally lower than houses because houses are lodged in larger spaces while condo units occupy only an intact space within a building. While having a single-family house is full of maintenance repairs with not just the house itself but can also include a lawn, garage or a pool, the cost of living in a condominium unit is becoming reasonably cheaper.
In terms of comparing prices of other residential areas like an apartment, buying a condominium unit can be more of an investment, meaning that it is considerably more expensive than renting an apartment. Renting an apartment unit lets the renter be free from shouldering the maintenance costs and effort in most cases because the ownership of the unit belongs to property management and not to the renter. Hence, the difference between an apartment and a condo is that you own a condo while an apartment is to be rented.
Cons
Additional Monthly Fees
Generally, a price tag of a middle tier condominium unit is more affordable than of a single-family home. However, in a condominium, there is a homeowner’s association (HOA) which is an organization that manages the circle of owners, plans events, enforces rules, and other tasks created for the betterment of the community. This kind of association is created so that there are officers that can overview the state of the community to plan and ensure that the necessities of each owner is available. To run this association, of course there will be needed funds and that so called homeowners association fees will come from everyone in the community circle. These funds can be collected monthly and the funds are determined to be spent for the creation of new amenities and the maintenance for those.
Depending on the condominium’s prosperity, the additional fees are not limited to the keep of the association funds. In some affluent and wealthy condo communities, there are other fees like gym membership fees, parking fees, etc. since these are regulated by the acting association and it depends on their management style and status.
Less Liberty
Since a condo unit owner lives in a close-knit community in their respective vicinity, rules and regulations enforced by the homeowners association are needless to say must be observed at all times. These rules can be a major disadvantage to certain people and those might considerably affect your lifestyle in many aspects. Major examples of these rules can be limitations to pets, general curfews or curfews within specific community areas, unit renovations that must be permitted and checked by the association, and etc. All of these restrictions must be weighed upon before deciding to buy a condominium unit.
Less Privacy
Another disadvantage in settling in a condominium unit is the distance of your personal space to your neighbor’s space. Given the structure of condo units in a building, you can possibly have a neighbor on either side of your walls, your ceiling, and on your floor. These instances will be a whole drawback if your patience is not enough to deal with spontaneous noises such as crying babies, loud celebrations, unintentionally overhearing conversations and arguments, and etc. A disadvantage like this must of course be contemplated or considered if you want to own and live in a condo unit.
Finite Interior Space
Unlike other kinds of residential settlements that can sometimes include open lots, a condo unit only has its limited interior space that will be holding all of your designated rooms, its furniture and appliances, and others. A condo owner’s personal space is tightly located inside the unit and for other individuals, a limited space like this can be unbearable or suffocating. So, planning beforehand and considering the number of people that will reside in the unit is a crucial step to be done before trying to buy a limited space. Conventionally, common areas shared by all the residents can make up for this finite interior space.
Inconvenient Selling
Long term planning for the future before investing in a condo unit is a must-do and is a commendable step before dwelling on the decision. A prospective buyer should look forward to the after factors that can possibly happen. If you plan to reside and then do not know the next plan, whenever some event comes up, you might consider renting or selling the unit to others. Reselling a condo unit can be difficult for many reasons. First is the aforementioned disadvantages that a condo ownership can bring, the state of the community in the condominium building, the preference of most buyers in the market, and the distinct qualities of your unit. Since every unit in a condo building has the same qualities and identical looks, a potential buyer can inevitably consider the fresher or newer ones that are also located close to your unit.
Conclusion: Is it Worth it or Not?
Your personal preference will have a great impact on your point of view, will a condominium unit ownership be an excellent investment? Or perhaps not? By seriously taking the numerous discussed factors and issues into consideration and thorough planning, a major decision that will affect your future living can be done very well. Giving consideration to every question that will arise before the decision making, during the settlement in the condo unit, and after the long run, will be your weapon for a flawless opportunity you can grab.
For those people who straightforwardly plan, decisively map out their steps on living, and strongly focus on their long-term goals, a decision like this will be a walk in the park. In terms of deciding for a condominium unit ownership, life-long goals will be a major addition to the factors that will influence the final resolution. Would you plan to give the condominium unit to someone you know? Will you plan to sell it to others or rent it when you have decided on leaving the place after finding a new residence? Are you planning to grow your family in the same settlement for the next decades to come? There are just too many uncertainties that can take place in the future and in this context, it is never a bad idea to assume something that can possibly occur.
Sources:
https://www.investopedia.com/articles/mortgages-real-estate/09/issues-purchasing-condo.asp
Comments