Condominiums: The Basics - Pro's and Con's of Condominium Ownership
The easiest way to understand the
idea of condominium ownership is to see it as an apartment you
own (in fact, many condominiums are apartments that have been
converted over the years). Your ownership extends inward from
your interior walls, floors and ceilings. In addition, you are
a partner, with all the other owners in the complex, of the exterior
structure (the foundation, exterior walls and roof) as well as
any common areas and amenities (such as swimming
pools, clubhouses, tennis courts, play areas, etc.)
One of the requirements of condominium ownership is the payment
of a monthly condo fee, which covers general repairs and maintenance
to the common areas of the complex as well as (hopefully) building
a cash reserve for future needs. In general, all exterior maintenance
and repairs are the responsibility of the condominium association,
although you will be charged for them, either through your association
dues or a special assessment (a one time charge assessed to all
owners for, as an example, a new roof). The normal day-to-day
maintenance of the grounds (some examples are cutting the grass,
shoveling snow and maintaining the pool) are also the responsibility
of the association. Interior maintenance and repairs (for example,
replacing a dishwasher) are the responsibility of the individual
owner.
In some areas, a condominium may be the only consideration
that fits within your budget. The reason is simple. In general,
the same square footage will cost less in a condo setting than
it will in a single family home or townhouse, due mainly to the
cost of land. You can build many more condos than you can single
family homes on the same amount of land.
Advantages of Condominiums
- You will be responsible for few or no exterior maintenance
or repairs.
- Many condominium communities offer amenities (pools, play
areas, tennis courts, etc.) you may otherwise not be able to
afford.
- Condominiums are often located in locations convenient to
centers of employment and shopping.
- Condominiums are often more reasonably priced than other
forms of housing.
Disadvantages of Condominiums
- You will be responsible for payment of Condominium Association
fees.
- You may have less privacy compared to single family homes
or townhouses.
- You only own from your interior walls inward. The rest of
the structure and the land is owned in common with the other
condominium owners.
- When it is time to sell, it can often take longer to sell
a condominium.
Is a Condominium for You? It is if...