City Life with Less Maintenance
Condo High Rise
A Condominium is an apartment of individual ownership with co-ownership of all of the common areas; corridors, hallways, stairways, lobby, recreation rooms, porches, rooftops, and of the grounds, gardens and any out-buildings. In many ways Townhouses and Garden Houses are much the same except they are ground or second floor and have individual entrances and usually include a private plot of land.
I will start off by telling you up front, I could never live in a Condominium or an Apartment. I enjoy gardening and building things. I have too many tools to fit in a condo. I also own 2 vehicles, a boat and a quad and I need the parking space. I have lived in a townhouse for the past 13 years only because it came with the job of being the landlords agent for the complex where I lived. I am now retired and am moving back into a house, one with an over-sized double garage and 6000 sq.ft. of yard. It is all a matter of lifestyle and a house suits me best.
If you prefer the the convenience of living in higher density areas, lower maintenance, lower insurance premiums and don’t mind neighbors on the other side of the wall, then perhaps a condo or townhouse is the home for you.
Whether it be a house, townhouse or condo, very few owners will make profit by selling for many years. Adding in the costs associated with purchasing a home plus the interest on the mortgage, it takes a substantial jump in real estate market price to come out with a profit.
Most condo buildings are grouped in densely populated areas. Being grouped, gives little advantage as to location. Location generally bears the same influence on price to the group as a whole. Nearly all condo units include the same ammenities, so that leaves age as the biggest factor in pricing. Question: you have a choice between two units, virtually the same, one brand new – the other 2 years old, both the same price – which would you purchase? Exactly! that is why the 2 year old unit is approximately 10% less in price than the new. Not until several years after the area is completely built up will the prices tend to even out. Twenty years is a long time to wait. My thought is, the older condominium at a lesser price is the better value. New condos are easier to purchase though because the builder has seller advantages that don’t apply to the individual owner.
A new condo at a decent price in an newly designated neighborhood with potential just might make a good investment. Area growth raises prices. First in gets the best value for the buck.
Then there is the matter of Condo Fees which add a lot to the monthly payment, especially when you are still paying your proportional assessment of the property tax on top. It is a good thing that most condo buildings are classed as residential and not commercial or light industrial as are many apartment blocks. See: Rental Accommodation is a Business.
Typically a condominium association will cover: Building maintenance, water, sewer, security, elevators, fire protection systems, boilers, pavement, snow removal, sidewalks, roof replacement and repair, siding maintenance and repair, landscaping, lawns and administration. It seems that nearly all condo associations are managed by a small close-knit few of the condo owners. Not until there is a serious matter do others turn out to the meetings. This is mainly due to absentee owners who use their condo units as investments and rent them out to tenants to cover their costs.
If you are considering purchasing a condo, ask to see the Codes, Covenants, and Restrictions (CC&R’s) placed on the unit owners by the condo association. Too often they could have limitations on your; visitors, pets, children, balcony use, elevator use, parking, number of occupants, renovations, vehicle types, selling price and even registration of renters. You will want to know the proportion of units that are owner occupied as compared to rentals. A high proportion of rentals could have a negative impact on financing and resale. You will also want to know if the condo association is not currently in litigation that could extend liability to all owners in the case of loss.
If you are not concerned with selling for several years, want the convenience of not having to do your own outside maintenance and enjoy living in the city core closer to work and entertainment, then a condo purchase could be the less expensive alternative to home ownership. I would suggest that you buy as high as possible for less disturbances from other neighbors and noise from the street.
“To keep from getting stuck with a lemon, you’ve got to do some homework. Here are the seven most important questions you need to ask before buying a condo.” Read More…