Will your unit increase in value?

Of course, one can never tell with the real estate market, but an educated guess is better than a random guess. First of all, keep in mind that you will probably have to keep the unit (stay in it or rent it out) for a couple of years to recoup your purchase costs.Request a market analysis from a real estate agent regarding the selling prices of condos in the building or area. Check the price appreciation on the market analysis to evaluate how quickly the condos are increasing in value; subtract the selling price from the purchase price and divide by the number of years the property has been held by the previous owner for a ballpark estimate of annual appreciation in the neighborhood.

Condo Timeshares – How Great Are They?

Are you consider buying into a timeshare? Do you understand what you are getting into and what condo timeshares are? There are two basic types of timeshares, condo style and apartment style. They both have their advantages and disadvantages. Here is what you need to know about condo style timeshares.

1. These style of timeshares usually have more room and you can bunk up more people when you use them. This is a huge advantage because you can take more people with you and you can have a better trip due to having more room.

2. Condos are usually two floors instead of one and you will not have anybody above or below you. This is good because the last thing you want is that party happy group above you making all kinds of noise when you are trying to relax, and if you are the party group, then you will not have to worry about disturbing anybody else.

3. If you want to rent out your timeshare, condos are easier to rent. They usually have more room so this allows you to charge a bit more for rent, but whoever you rent it to can split the rent more ways by inviting more people to come with them.

4. Some condo timeshares actually allow pets. If you like to travel with your pets, then this is your gig because the apartment style timeshares rarely allow pets, but the condo style usually do and this will allow you to travel with your beloved pet.

Buying Insurance for a Condo

Condominium association has insurance but only covers the building, and does not include your possessions or accidents occurring in your condo. Buying insurance for a condo will protect you and your investment.

Determine what is covered by their insurance and what you are accountable for. Insure those areas to cover potential repairs or replacement. List the contents of your condo including personal belongings and appliances. Estimate total cost to replace the items. Purchase liability insurance. Condominium policies do not cover your condo or events that take place inside them. You may be held liable for injuries sustained in your condo or damage done to the building.

A Few Questions to Ask Before Buying a Condo

As in buying a house, there are also risks involved when buying a condo, and these are questions to consider for a better chance of a good buy:

• Is the condo association professionally managed?
• Is the monthly fee comparable with nearby similar condo complexes?
• Has the condo unit been professionally inspected and did the seller provide a defect disclosure report?
• Ask residents, “What do you like best and least living here?”
• What is the financial condition of the condo association?
• Have there been any special assessments in the last three years?
• Are there any disputes among owners that the Association is trying to resolve?

Are You Willing to Share?

Are you willing to share?One important detail about condo living is that you will have to share the building’s amenities with your fellow tenants. While this is no different from bumping into neighbors in a village clubhouse, some people prefer lounging by the pool in their own lawn.If you’re one of those who are particular about their private space, single home ownership might be what you need. In a home all your own, you’re your own total boss. You don’t need to abide by the building rules or worry about disturbing your next door tenants who are just on the other side of the wall.But if you think you’re cut out for condo living, by all means go for it!

Condo Living – Some Disadvantages

Depending on one’s viewpoint, here are some points to consider:

• Payment of Condominium Association fees which are not tax deductible.
• Paying for amenities that you may not use.
• Unexpected increases in monthly fees and for maintenance costs.
• They have a set of rules that can include restrictions on noise levels, outdoor barbeques, pet ownership, renovations and even the interior décor of your unit.
• Poor soundproofing
• Parking is often in a common area not attached to the home.
• Condominiums are more affected by trends in the real estate market. If the market falls, usually condos are the first to suffer, the last to recover.

Know your association

Before buying a condominium, it pays to get to know your neighbors, especially the home owners association (HOA). First of all, find out how much their building dues are and how many times it has gone up in the past five years or so. Ask to see a copy of their building regulations. Some HOAs are very basic and only enforce restrictions on how many people can live in a unit and other safety and security measures, while some even control what sort of Christmas decorations you can put up.

Ask how large the HOA’s reserve funds (used to pay for maintenance and emergency repairs on the building) are. The larger the reserve, the less a chance of an assessment or one-time payment to chip in for an unexpected expense. The smaller the reserve, the greater the chance you’ll be billed for a building repair in the near future. Some states require periodic updates of reserves to be published to HOA members.

Alternative Lifestyle–Condo Living

Condos present an alternative lifestyle for individuals who prefer to be independent and own a place that is affordable and more convenient than buying a house. This idea appeals mostly to single young professionals as well as small families. Condo units offer amenities like guarded parking space, 24 hour security, and swimming pool.

Condominium owners hold rights over their respective units but share responsibility over operating costs and maintenance of the shared spaces of the property – lobbies, hallways, elevators – that are essential to a condominium complex. Each complex is a community, each owner accepts and follows the standard rules and regulations of condo living.

Monthly fees

One of the cons of condominium living is the monthly fee that you need to pay to the homeowners’ association for the general upkeep and maintenance of the building, and in some cases, for the ongoing mortgage or debt incurred when the building was constructed.  Before buying a condo, make sure you find out exactly what the monthly fee covers, and if there are any quarterly, semi-annual, or annual payments to be made. Do the fees include the following?

• utilities
• cable TV
• internet
• heating
• security
• cleaning of the parking areas and other common areas
• maintenance of the building itself (or are owners expected to contribute to emergency funds if maintenance is urgently needed?)

Some Benefits of Getting a Condo

Many buyers consider condominiums as a major investment, and rightly so. Since majority of condos are located right in the middle of bustling cities, the value of condos appreciate when the economy booms. While the same goes true for just about any property, condominiums are particularly lucrative as their location and amenities greatly influencing the renting and selling value.

And because of condos are located in highly strategic locations, residents would be able to enjoy the luxury of having just about everything at arm’s reach. They get to have access to the basic necessitates and a lot more as bigger cities are more often than not more fully equipped compared to smaller towns.