Prospective homebuyers have many choices to make, and one of them is whether or not to consider a condominium.
A condo is a unique twist on the traditional home. Each condominium is a unit (that is individually owned) within a larger property development, while common areas – like hallways, the grounds surrounding the property and shared amenities such as gyms – are jointly owned by all the residents.
Condos are typically managed by a Homeowners Association (HOA) – which is just part of the deal – and that HOA tends to strictly enforce its rules while also handling the maintenance for the shared spaces in exchange for monthly HOA fees.
Ultimately, if you think of a condo as an “apartment that you own,” that’s not far from the mark. They offer a unique blend of ownership benefits and lifestyle perks. However, like any other property choice, condos have their ups and downs. You must think about your financial situation, your lifestyle and your present and future goals to decide if a condo is right for your needs.
What Are the Pros of Buying a Condo?
Condos have gone up and down in popularity over the years. During the early days of the pandemic, condos took a backseat to detached single-family homes because people wanted more space to work from home – and distance from urban areas seemed ideal. Now that people are returning to regular offices and embracing social engagements once again, condos are starting to see a resurgence. The benefits of a condo include:
1. Affordability
One of the most appealing aspects of condos is their relative affordability compared to freestanding homes in the same area, especially in urban locations where real estate is expensive. Lower purchase prices can appeal to first-time homebuyers, young professionals, folks who are downsizing or anyone who wants to own a home without breaking their bank account or budget.
One of the most appealing aspects of condos is their relative affordability compared to freestanding homes in the same area, especially in urban locations where real estate is expensive. Lower purchase prices can appeal to first-time homebuyers, young professionals, folks who are downsizing or anyone who wants to own a home without breaking their bank account or budget.
2. Less Maintenance
Condos are typically easier to maintain than single-family homes because the HOA handles the upkeep of all shared spaces, including landscaping, snow removal and exterior repairs. For condo owners, this can mean less time and expense spent on maintenance and repairs. That’s why condos are often favored by people who are focused on their careers, like to travel extensively or are afflicted by mobility issues.
Condos are typically easier to maintain than single-family homes because the HOA handles the upkeep of all shared spaces, including landscaping, snow removal and exterior repairs. For condo owners, this can mean less time and expense spent on maintenance and repairs. That’s why condos are often favored by people who are focused on their careers, like to travel extensively or are afflicted by mobility issues.
3. Amenities
Condos often come with access to amenities that you simply don’t get in the average single-family home. If you adore the idea of having a swimming pool, gym, tennis court, party facilities and 24-hour security, those are the kinds of things you may find with condo life. Having access to these amenities can significantly enhance your quality of life – which is definitely worth considering.
4. Community
Condo living can foster a sense of community. Many condo developments offer social events, communal spaces and other opportunities to mingle with and get to know your neighbors. This sense of community can be especially attractive for single residents, retirees and the newly relocated who may not otherwise have a readily established social network of their own.
Condo living can foster a sense of community. Many condo developments offer social events, communal spaces and other opportunities to mingle with and get to know your neighbors. This sense of community can be especially attractive for single residents, retirees and the newly relocated who may not otherwise have a readily established social network of their own.
5. Prime Location
Condos are often located in prime urban areas where single-family homes are rare or prohibitively expensive. If you want to live in a downtown area with easy access to restaurants, entertainment, public transportation and other urban perks, buying a condo may be your best option. Being in such locations can also shorten your commute, which can save time and reduce your transportation costs.
6. Security
Many condos come with enhanced security features, such as gated access, surveillance cameras or even on-site security personnel. If you value peace of mind, travel frequently for work or leisure, or live alone, the added security can be a significant benefit to you.
7. Investment Potential
Condos can be a good investment in certain markets. Condos can often be easier to rent out than single-family homes if you choose to relocate.
What Are the Cons of Buying a Condo?
Despite the perks that you can get, condo life is most definitely not for everybody. Before you buy one, you need to make sure you go into the situation with open eyes and make sure that the drawbacks are something you can tolerate. These include:
1. HOA Fees
Those monthly HOA fees can make condo ownership a lot more expensive than you may initially realize. The more amenities, the better the location, the higher the luxury – the higher the fees. You should factor those fees into your monthly housing budget before you buy.
2. Restricted Control
When you own a single-family home that’s not in an HOA, you have the freedom to be as eclectic and unique as you want to be – so modify and personalize to your heart’s content. However, condo HOAs can dictate everything from what pets you are allowed to own to where you park and when you can play your music. So, if you don’t like someone telling you what color you can paint your front door and what kinds of flowers can be planted in your garden bed, a condo probably isn’t the best option for you.
3. Special Assessments
On top of those monthly HOA fees, condo owners may occasionally face special assessments, which are additional charges that an HOA can levy on owners when there are large, unexpected repair costs or when they need additional, unexpected funds for a major project – such as an urgent roof repair. This can be a substantial burden if you aren’t good at putting money aside for emergencies.
On top of those monthly HOA fees, condo owners may occasionally face special assessments, which are additional charges that an HOA can levy on owners when there are large, unexpected repair costs or when they need additional, unexpected funds for a major project – such as an urgent roof repair. This can be a substantial burden if you aren’t good at putting money aside for emergencies.
4. Privacy Issues
Living in a condo means sharing walls, floors, and ceilings with neighbors. Too much noise can be a problematic issue, especially in older buildings with minimal soundproofing. If you’re sensitive to noise or prefer a more private, detached living environment, you may find condo life to be too challenging. Or, if you’re someone who enjoys socializing late into the night or playing your music loudly, you may find the limits on your activities unpleasant and difficult to bear.
Living in a condo means sharing walls, floors, and ceilings with neighbors. Too much noise can be a problematic issue, especially in older buildings with minimal soundproofing. If you’re sensitive to noise or prefer a more private, detached living environment, you may find condo life to be too challenging. Or, if you’re someone who enjoys socializing late into the night or playing your music loudly, you may find the limits on your activities unpleasant and difficult to bear.
5. Outdoor Limitations
If you feel like a yard or a garden is important to your sense of self, a condo might not be a good fit for you. Many condos have little more than a terrace or a balcony by way of “outdoor space” for each resident. Even those that have communal green spaces don’t give you the same level of control that you’d have over your own yard. This can also be a problem if you want a dog and space for your buddy to roam, leashed or unleashed.
If you feel like a yard or a garden is important to your sense of self, a condo might not be a good fit for you. Many condos have little more than a terrace or a balcony by way of “outdoor space” for each resident. Even those that have communal green spaces don’t give you the same level of control that you’d have over your own yard. This can also be a problem if you want a dog and space for your buddy to roam, leashed or unleashed.
6. Resale Challenges
Condos can sometimes be harder to resell than single-family homes, particularly in certain markets. A resale can be heavily influenced by the HOAs restrictions, the building’s age, the reputation of the HOA for being reasonable (or not) and its location. This could mean a lower resale value in the future than you anticipate and make a condo a poor investment.
Condos can sometimes be harder to resell than single-family homes, particularly in certain markets. A resale can be heavily influenced by the HOAs restrictions, the building’s age, the reputation of the HOA for being reasonable (or not) and its location. This could mean a lower resale value in the future than you anticipate and make a condo a poor investment.
Ultimately, buying a condo has both its advantages and disadvantages and there’s no one right answer for everybody – just a right and wrong answer for you based on your unique needs. An experienced REALTOR® can help you understand more before making the leap into condo ownership.
