If you plan to live in a condo, you must know that life in these properties is different from what you’re used to if you own a detached home. Unlike apartments, associations run these properties, and most amenities are shared among the residents. The associations set the rules and regulations that must be followed by each occupant. Nonetheless, buying a unit in Peak Residence will be one of the best decisions you’ll make in your lifetime. Let us look at some of the things that you should know when buying an condo.
Appreciation of Condo Units
Compared to detached homes, condos appreciate at a slightly slower rate. However, you need to know that this doesn’t mean condos will be cheaper than similar homes in the locality. When you own a condo, you can tap into homeowners’ tax deductions if you have a mortgage. But remember you’ll have to pay property taxes for the unit.
Since most amenities are shared, each condo owner must contribute a specific monthly, quarterly, or annual fee for maintenance and repairs. Thus it’s essential to know how much you’ll be paying periodically for these services. Request the association to share a copy of their budget so that you can understand how your money is being used.
The association in the community maintains a fund to cater for repairs and any emergencies that may arise. If the association doesn’t have a reserve, they will have to request members to pay some money every time the need arises.
In some other condos, the management is tasked with the responsibility of maintaining the facility. They charge the members certain fees for maintenance and repairs; thus, when you need any of these services, you need to call then, and they will handle the rest.
Rules & Regulations
When buying a condo, it’s essential to make sure you’re comfortable with the rules and regulations set by the condo association. For example, in some condos, you’ll not be expected to keep any pets. In others, you must maintain a quiet time between 10 p.m. and 6.00 a.m. Others will also dictate the number of parking spaces dedicated to each unit. Thus it’s essential to gauge if these rules rhyme with your lifestyle.
You also need to realize condo insurance is different from homeowners’ insurance. In most cases, the condo association provides a master insurance policy, but this varies from one establishment to another. When scouting for a condo, you need to have a home inspector who will go through the insurance policy and let you know your responsibilities. It’s therefore essential to understand what the insurance policy covers, to avoid repairs that aren’t included in the policy.
Each living unit has its advantages and limitations. For example, if you like private life, you have an issue living in a Condo, since you have to share many amenities with your neighbors. Additionally, you’ll share a maintenance reserve with fellow members in the condo association; thus, if some members fail to pay their dues, you may be stuck in making some repairs.