Real estate is full of opportunities as well as profitably ventures; one of these extremely profitable investments is a condominium. According to the expert real estate marketers, there is nothing more profitable than a condo, if you are thinking of investing in a rental property. All the beginners, real estate investors, are big on outing their money on condominiums as their initial investment.
However, for an initial investor, jumping the bandwagon when everyone is doing it isn’t the right thing to do. It’s important that you do your research before investing in anything significant or new. So, for all those novice investors out there, we have compiled a list of pros and cons of investing in a condo or condominium.
But first, here’s a quick overview of what is a Condominium or Condo:
Condominiums or Condos:
A Condo is one of the many units in a large complex. Residents of condos share common areas like fitness centers, clubhouse as well as pools and gyms. Residents are required to pay monthly fees to avail of these amenities as well as keep them maintained. There are many pros and cons of living in a condo, as well as investing in one.
Advantages and Disadvantages of Buying A Condo:
Just like any other property, a condo also comes with its fair share of good and bad points. These are the points that may become the deciding factor for your investment. So, make sure you read through and with attention.
Advantages Of Buying A Condo:
Let’s start with the best parts of buying a Condo.
Unlike a single unit house, a condo comes with many added facilities like gym, clubhouses as well as fitness centers. This is the reason why condos are big with first home-buyers. You get added facilities for your kids and yourself; you also get common areas and poolside as well as playgrounds. There is so much going on in a condo complex that there is never a dull moment.
Most condo complexes are secure and gated. They all have either secured or locked entry points, so no one who isn’t a resident can enter without permission. Also, if there is an emergency, the tenant can seek help from the neighbors before you even get there. Condos are maximum security with minimum risks.
In a single-unit home, you are the sole caretaker of the house, but in a condo complex, the property manager takes care of the maintenance. Hence you don’t have to worry about such mundane issues. Raking the lawn, keeping common areas clean as well as fixing roofs, and keeping the grounds in order comes under the duties of the property manager. There is a minimal fee, of course, but that covers both the maintenance as well as charges for using the amenities.
One of the best benefits of condos is that they are mostly located in the prime areas of the city. This makes them the most attractive investments. They are close to major landmarks, schools, colleges, hospitals as well as work. You don’t need to commute long; they are also near public transport so that you can get to work and school easily.
Compared to single-family homes, condos are very much affordable. This is one of the many benefits of condos; they are a dream come true for new-buyers.
Disadvantages of Buying a Condo:
Like all investments, there are some sour points of buying a condo.
Condos are high on security, but they are pretty low on privacy. There are common areas, so anyone and everyone can use them like pools and gyms. Also, neighbors are pretty close by, so that’s an added disadvantage. However, every complex has its own set of rules that all residents need to abide by, and this includes loud noises, parties, and well as late-night guests.
Homeowners Association (HOA) Charges:
In a condo complex, there are other fees apart from your mortgage payments. These are called the HOA or Homeowners Association charges that are paid to keep the complex well-maintained. These charges cover all maintenance issues like sewer, water, pipelines, cleaning as well as maintenance f the common areas like pool and gyms. These fees vary from state to state as well as from location to location.
Rental Caps are rules by the HOA or the board. According to this rule, the number of renting condos cannot exceed the number of owner-occupied condos. Moreover, there are some condo complexes where renting isn’t allowed at all, so make sure you do your research before investing in just complexes.
Rules and Regulations:
Most people do not choose to invest or rent condos because they can’t handle the many rules of the complex. We are not exaggerating when we say that condos do come with a lot of rules and regulations, and this is the worst drawback of living in a condo complex. There are rules about everything, including pets, guests, noise, trash, landscaping, design change, as well as you can or can’t park outside your house. Breaking these rules means serious consequences; you do get a warning first and a fine later. Search about the condo rules and regulations before investing in one. Pro Tip: invest in a condo that allows two or more than two pets, as have the American population has a couple of pets that claim family.
Hard To Sell:
One of the most significant disadvantages of buying a condo is the fact that they are hard to sell. There are many reasons for this, people don’t like living in condos, they are not meant for big families, and most pet owners avoid condos because of strict rules and regulations. There is also the added expense of HOA fees; these are the factors that make a condo hard to sell.
So, there you have it, all the pros and cons of buying a condo laid out in front of you. Going through these will help you understand whether a condo is a suitable investment for you or not.