Condo is a type of property ownership where a person owns a unit in a multi-unit development. Condos are a relatively cheap, headache-free option for home ownership. Maintenance of the building, lawn, and facilities like the gym and the pool, etc. are all taken care of the home owner’s association. According to an expert from Ivy toronto Condo company, people living in condos are guided by some rules and regulations set by the home owner’s association, though, one will have to check and see if they are agreeable to you. This beginners guide to condos will introduce you to the basics of buying and owning a condo.
What beginner’s need to know about condos
Understanding a condo
A condo development could take the form of complexes like in apartments, townhouses or a multi-family home converted for multi-tenant occupation. What defines condominiums is that they are explicitly and legally declared as so and the units are meant to be bought by individuals. When you buy a condo, you’re buying a unit up to but not including the walls. Hence, condos have been described as a “Box in the air.”
Costs of living in a condo
To buy a condo, you need to account for several costs and budget accordingly. You’ll have to pay down payment, property tax and mortgage for the unit itself. Then there are the condo fees or maintenance fees which every resident must pay monthly. These fees cover salaries of ground workers, handymen, concierges, janitors and go towards the maintenance of the building and luxury facilities such as the gym, rooftop garden, swimming pool. You could also be charged special assessment fees.
Condos with one bedroom and studio apartments should be avoided if you plan on selling your condo in the future as these small ones don’t sell easily. A great view adds value. It’s a good idea to buy one with space for parking your car. Even if you don’t use it, you can rent it out.
If you decide to settle in a condo, you’ll have to live by a set of rules called the Covenants, Conditions, and Restrictions (CC&R). These rules are enforced by the condo association and may restrict you from owning pets, renting out your condo, the noise levels you can make and remodeling your bathroom and kitchen. Go over these rules before buying to ensure they don’t interfere with anything you plan to do.
When selecting a condo, it is important to take note of the developer. You’ll want to investigate the building for any signs or damage or poor build quality. Investigate the developer’s past projects to find out if there have been any problems in their past developments.