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Published On: Thu, Jul 19th, 2018

Are Condos a Good Real Estate Investment?

Buying your first home can be an exciting nightmare. After years of bad roommates and living with your parents, you’ll have the independence you worked hard for. The nightmarish part comes from the uncertainty that you made the right investment. With those in mind, it’s no surprise that condominiums are a popular alternative to home ownership.

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Condominiums, or condos, are often compared to apartments because they are living spaces situated in large buildings. They’re more like single story suburban homes stacked on top of each other. Once purchased, the condo owner carries the deed and title to their space.

Should you purchase a condo, you’ll have to accept the good and bad terms of owning one.

The Condominium Association

Upon moving in you’ll be welcomed by representatives of the Condominium Association. They’re a group of fellow tenants who share in malignance expenses, enforce rules on amenities, and grant permissions to landscaping displays.

The common link between you and the association is that you all signed paperwork relating to the covenant, conditions, and restrictions of the condo. This grants members the right to collect fines, restrict privileges, and even evict non-complaints. Every association is different, no matter if you’re looking at condos for sale in Miami or Sarasota, so besure to chat with them first.

Fees     

    Being a good community member also means contributing your fair share. Monthly fees are another aspect that makes condos like an apartment. Rather than being paid to a landlord, they are paid to the aforementioned association for upkeep of any amenities such as a swimming pool, community area, and the elevators.

    Other fees may include whatever parking arrangements you have. Remember, you will still have to pay these on top of the mortgage you owe on the condo.

Maintenance & Upgrades

    Grounds keeping duties are often handled by a contractor service the association hired. These contractors see to all of the external and indoor needs of the complex including lawn care and janitorial. The only space you need to concern yourself with is your own home.

    Any improvements made to your property need to be cleared by the association. This is to be expected given the small living spaces. In order to prove that these updates won’t affect another tenant’s living arrangement, you have to submit to a special assessment. A special assessment could dredge up a host of other problems with your unit. These additional repairs may drive your monthly costs up to $1000.

Re-sale Value

    All condo owners share in the value of the land. The moment the property value goes up you may have the idea to sell your unit. The re-sale value of a condo, however, will not be as profitable as a house. Buildings may impose strict restrictions on how many units could be sold off.

    An alternative to selling would be to rent off the condo. Before you advertise the rental property, you have to secure permission from the association. This process takes a year or two. When you do rent out, set your fees at a figure that will offset your mortgage and community dues. Be prepared to set a bargain price.

Author: James Neff – Content Marketing Specialist

James graduated with a Communications BA from Keystone College, specializing in Journalism. He is skilled in multiple writing disciplines, such as AP writing style, technical writing, creative writing, and has experience in APA research. He has conducted freelance and ghost writing for SEO firms for over a year now and keeps up on all of the latest SEM trends and news.

Being a well rounded writer provides an excellent advantage to the content marketing field. James is a lifetime member of the forensics fraternity Pi Kappa Delta and his minor in Digital Media comes with experience in video production and audiology.

James’s passion for reading extends to classical literature, poetry, political theory and he’s always up-to-date on current events. He was an active member in his school’s newspaper and radio club. James has been published in his school’s newspaper, short story magazine, and has won multiple forensics awards.

About the Author

- Outside contributors to the Dispatch are always welcome to offer their unique voices, contradictory opinions or presentation of information not included on the site.

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