In urban areas, condos are a popular option for first time home buyers. They affordable, low-maintenance, and offer various amenities that single family homes don’t include. However, buying a condo requires more strategic planning than buying a single family home. Here are five tips for condo buyers.
1. Expect extra fees.
Condos usually require additional fees. Your condo association dues will be one of your largest expenses. Before you decide on a unit, find out how much your monthly dues will be and what those fees cover within the community. Do they seem reasonable, or are they on the expensive side? Condo fees typically cover maintenance, some utilities, security, and community parks, gyms, and playgrounds.
2. Condo mortgages might involve some extra steps.
When you buy a condo, the condo association must also be approved for a full loan approval to be issued. This might require some extra paperwork and additional costs to be paid before closing.
3. You might need a bigger down payment.
Sometimes, lenders have extra requirements for condo buyers. Can your budget accomodate this? Before you start condo shopping, get preapproved. Once this happens, you can shop around with a budget in mind.
4. There are rules to condo living.
Before you decide on a condo community, study the rules that the condo association has in place. For example, if you own a large dog, you need to make sure your particular breed is welcome before you decide on a condo complex.
5. Think about the best placement of your unit.
Location is everything, even in a condo community. If you’re looking at a high-rise condo, decide if you prefer the bottom, the middle, or the top. Top units are great for noise reduction and scenic views. However, you need to take other things into consideration. Is there an elevator? If the elevator breaks, are you physically able to walk up the stairs? Middle units might save you money on your heating bill since they’re sandwiched between floors, but you might also hear noise above and below you. Lastly, bottom units are convenient for people who don’t want to rely on an elevator but aren’t physically able to walk up and down the stairs.