Purchasing a new residence involves many issues and condos may be on your radar. It’s important to do research on any new type of investment and before you buy, keep in mind there are disadvantages to condominium ownership.
Condominiums – Disadvantages
Condominiums are simply a collection of units in a structure or structures. All property on the interior of the unit is yours with few limitations depending on the HOA or property management. Everything outside of the unit, however, is considered to be in the common areas and subject to administration by the homeowners association for condominium communities.
1. Parking – One of the biggest pet peeves with condominiums is parking. While this may sound petty, it becomes a big issue over time if a particular situation occurs. One would think a condominium comes with assigned parking. In many developments, however, this simply isn’t the case. Instead, parking is on a first come, first serve basis.
2. Restriction – Condominiums are all about uniformity. If you prefer to express your individuality, the rules of a condominium may drive you insane. Many condominium associations, however, can tend to go overboard with rules and one can often feel like a prisoner. You may be restricted from having pets, particular types of material in your units, renting to others, making noise outside during certain times and so on. Before taking the plunge on a condominium unit, you absolutely must read the rules and regulations for the association.
3. Association Fees – Homeowners’ associations need money to keep the gardening up and so on. As a unit owner, you are responsible for paying monthly homeowners’ association fees. Before taking the plunge, you need to make sure you understand the current fees. You should also look back in time to see how much the fee has risen over time. Paying an extra hundred bucks or so a month probably will not kill you, but what if the monthly fee is five hundred dollars?
The decision to purchase a condominium can be a complex one but also rewarding. While there are distinct advantages, it would be wise to go over all the details before making this decision. Make sure you understand what you are getting into before taking the plunge as with any investment.