If you live in an active city, you might have noticed the multiple condominiums that have been built up in the recent years. The past decade has been big for investors building up condominiums, with the hopes of selling all the units.
There are many different as to why people purchase condominiums as opposed to homes, but there are several advantages and disadvantages of owning a condominium. Owning a home is a much better option when compared to owning a condominium, and we will look at some of the reasons below.
As you may or may not know, the pricing of condominium units will be greatly influenced by other foreclosures within the same building. If you live in a building where another unit has filed for foreclosure, it will cause the price of your unit to drop. It is in your best interest to avoid buying a condominium unit in a building that has foreclosure units. Investors are constantly looking to make money, and one easy way is to build condominiums and sell them off. If you notice tons of condominiums being built up in one single area, you should be hesitant about buying in. One condominium per block would be ideal, as you can see that the investors aren’t greedy. Active cities with tons of condominiums are more prone to having foreclosure units. Leasing a unit would be a better option than losing out on the money you are putting down.
Before you consider buying a unit, you should do some online research on the builder, the units in the building and the prices they were selling at. If you notice that pricing has dropped tremendously from the time it was built, you should clearly avoid the condominium. If many units are still for sale, you shouldn’t run after it, because there is a reason why it hasn’t sold. Real estate agents who specialize in condominiums will know exactly where to buy units to have the most beneficial effect.
The one good thing about owning a condominium is that you don’t have many renovations to do. You could paint the home to your liking, but you will not have to repair any major issues. The building will be maintained by a company that is responsible for all repairs and maintenance. Every month, you will be required to pay the building owner a maintenance fee which will go towards the up keep of the building. Several buildings pay for electricity, so you just pay your mortgage and that’s it. When you buy a condominium, you may put a down-payment, which is essentially your principle investment. You then will be making monthly payments on your mortgage. A portion of the mortgage payment will be allotted towards the principle investment. At the time of selling your condominium, you will get back your principle investment, which is more than your down-payment.
So, owning a condominium is worth it, if you can manage to find a good building with no foreclosed units.
Before you consider buying a unit, you should do some online research on the builder, the units in the building and the prices they were selling at.