Condominiums or condos are buildings wherein individuals separately own their residential units, but jointly own some common areas such as the land, lobby, hallways, swimming pool, grounds and parking lot. Initially, they were not quite popular, mainly due to the aspiration of the single family homes. However, with increasing rates and space crunch, condos are becoming quite popular amongst single or retiring couples. Though such an arrangement has its own advantages, it does have some disadvantages as well. To find out more about the disadvantages of buying a condo, read on.
Disadvantages of Buying a Condo
- In case of a condo, you will have to pay a monthly maintenance fee that is separate from your mortgage payment. Watch out for any unnecessary high monthly charges and do not hesitate to see a copy of the latest financial statement from the homeowner’s association.
- Condominiums provide less privacy as compared to detached single-family home. The noise generated in communal living is always a big disadvantage for those who wish to have private space for themselves.
- CCRs or Covenants, Codes and Restrictions can be quite restraining. They are defined as the bylaws that govern the use of the property. It is advisable to go through a copy of the CCRs and review them, before deciding to make an offer.
- Find out the owner-to-tenant ratio. As most of the condominiums are purchased as investments, there could be a high percentage of tenants in the building.
- The resale value is another issue, as some of the associations are underrated due to overbuilding.
- Parking can prove to be a real pain in the neck, as at some of the places, the parking space isn’t allotted. In many developments, however, this simply isn’t the case. If it is on a first come first serve basis, then you might find it really difficult to manage the situation.
