Buying a home is no easy matter. It’s a big decision with many factors to consider: your budget, location, family, friends, work, and so much more. The perfect home means something different to everyone. With so many things to think about, you need to have every option available. One option you certainly don’t want to overlook is a condominium.

If you’ve been looking to buy your first home, condos are a great starter home as they offer more affordable price points than single-family homes. Condos also often come with amenities like pools and gyms that aren’t always found in traditional houses. 

If you’re looking towards retiring, you might consider downsizing to a condominium to alleviate some of the expenses that come with homeownership, like lawn care and larger utility bills. Plus, condos are easier to maintain than large single-family homes. 

Here’s what you should know before buying a condo. 

What is a Condominium?

A condominium (condo) is an individually owned residence in a building or community with multiple units. Condos have shared common areas and amenities, which means you’re sharing lawns, pools, common areas, etc. You own every bit of space inside your specific unit alone. While it varies across different communities, the common theme is sharing some things in both use and responsibility.

If you’re searching for the perfect, low-maintenance home option or find yourself in the following life circumstances, you should highly consider buying a condo:

• Retirement
• Looking to purchase your first home
• Looking to downsize your living arrangements
• Are interested in a condo for investment purposes 

Before you make any decision you’ll want to consider all the advantages and disadvantages of every type of home you’re choosing from. 

Pros of Condo Living

Whether you are searching for a single-family condo, moving from a house to a condo, or a retiree looking to downsize, condo living has several advantages.

Lower Maintenance

Owning a home means a lot of responsibility, and maintenance can be overwhelming. If you’re looking for a simpler lifestyle with less upkeep around the home, condos offer just that. 

Homeowners are generally responsible for: 

• Servicing the HVAC unit each year
• Home repairs and improvements
• Addressing roofing and basement needs
• Yard work and landscaping

Owning a condo takes away all this added responsibility by offering a maintenance-free alternative. When the exterior maintenance is the responsibility of the condo association it allows you to save money and put your time to better use.

Close-Knit Community

If you don’t mind living in close proximity with other residents, condo living is for you. Condominium living can be a great way to meet more people and form your own community. If you’re new to an area, this could be a great way to make friends and feel at home in a new environment.

Many condo buildings also have communal spaces for residents to socialize in, such as pools, gyms, or rooftop patios. There are often fun activities and events organized by the condo association that you can partake in. 

Keep in mind that not all condo communities are created equal. It’s crucial to find a condo complex that fits your lifestyle and needs.

Save Money

Compared to a single-family home, many condos are more affordable than houses. According to the National Associate of Realtors (NAR), the median price of single-family homes was $334,500 in March 2021. The median price of condos in March 2021 was $289,000. Additionally, depending on location, the asking price of condos can be dramatically lower than single-family homes.

Insuring a house is also more expensive than condo insurance. Family homes are generally much larger than condos and therefore, cost a lot more money to insure. The condo’s HOA insurance policy covers the building and shared spaces so condo owners only need insurance for their individual unit.

Attractive Amenities Included

In addition to a close-knit community, there are many amenities included in many condo communities. Some of the attractive amenities you may see are:

• Pool and/or Sauna
• Fitness or exercise centers
• Outdoor patios
• Private parking
• Social areas to congregate
• 24-hour concierge service

If you also have children or plan to have them in the future, look for a condo building that features family-friendly amenities, such as:

• Onsite daycare facilities
• Play areas for kids
• Group activities

Purchasing the right home is about more than layout and appliances. It’s nice to have conveniences a short distance away to make life easier.

Cons of Condo Living

As with any single-family home, condos have their drawbacks as well. Let’s check out some of the downsides to purchasing a condo as you weigh your options.

HOA Regulations and Fees

On top of your mortgage and maintenance fees, you’ll also be paying a monthly HOA fee.

HOA fees vary depending on the type of property where the condo is located, the size, and the amenities that are available to you. Older buildings tend to have more repair costs than newer ones. The need to cover maintenance repairs may result in higher HOA fees. It’s also possible that condo owners face higher fees when an association’s reserve funds are not managed properly. 

Condo owners also have to contend with strict HOA restrictions and policies. Many place restrictions on what you can and cannot do on your own property. You may own your own private unit in a condo building, but HOAs may restrict anything you do with your private residence. 

These regulations might be as simple as no loud music past 11 P.M. as a consideration for your fellow condo neighbors. On the other hand, stringent HOA regulations could prevent you from hanging up holiday decorations on your door. Rules in the association covenants often prevent condo owners from changing most of the exterior of the units.

If you don’t enjoy being told what to do with your own home, condos might not be for you.

Limited Space and Privacy

Another drawback to condo living is that it’s very similar to an apartment. Apartment living is often subject to a lack of privacy because you may be surrounded by neighbors on all sides. 

Condos with poor acoustical insulation mean that you can hear everything your neighbors are doing and they can hear everything you are doing. If you’re trying to get some peace and quiet (and privacy), condos may not be the right choice for you.

Choosing condo living also means that you have to learn to live within your limited space. A house allows you to spread your belongings around with little concern for the available space. 

A condo, on the other hand, forces you to think about your space. You’ll have limited room for whatever you choose to buy and live with. If you’re not willing to downsize, condo living is not for you.

Possible Challenges if You Choose to Sell

Believe it or not – reselling a condo may actually be more challenging than reselling a traditional house. Here are some reasons a condo might turn potential buyers off:

1. Not enough space for multiple children and pets
2. Condos are too similar to an apartment
3. Not enough privacy
4. High HOA fees and restrictions
5. Underfunded HOAs

In fact, HOAs play a considerable role in reselling. HOA funds are meant to towards maintenance costs to keep the community healthy and attractive. If the HOA is poorly managed or underfunded, that severely damages the value of your condo.

Additionally, the financial health of an HOA is a factor buyers need to consider when taking out a mortgage. Lenders won’t approve loans if the HOA has pending litigation against them.

Poor HOA Management

HOAs tend to have a massive list of rules that every condo owner has to abide by. They may restrict the number of pets you are allowed to have. Some breeds are even outright forbidden. You may also be limited on the number of visitors you have. Not to mention noise restrictions. While it’s great that your neighbors also have to abide by these rules, it’s not easy being told what to do all the time.

HOAs may be great for many communities, but they can be a nightmare if they are poorly run. Every HOA features two accounts: the operating account and the reserve account. The operating account covers regular maintenance costs such as pool and lawn maintenance. On the other hand, the reserve account takes care of long-term projects like building a new playground.

A well-managed HOA keeps both accounts funded to meet any expense that may arise. 

Poorly managed HOAs can be caused by financially illiterate members or even people skimming money from the reserve account. Let’s say there’s a bad storm, and a tree is knocked over and lands on the roof. But there are not enough funds to cover the repair costs – which means that the HOA will require you to pay an additional fee to cover it. 

If you’re considering purchasing a condo, be sure to research the HOA thoroughly.

Additional Read: 10 Questions To Ask When Buying A Condo

Ready to Move Forward with Condo Living?

Purchasing a condo can be an excellent choice – for some people. It can be liberating to live in a home where you don’t need to worry about making significant decisions. However, if you seek privacy and independence to make your own home decisions, then condo living might not be the best choice for you.

Whether you are a first-time buyer or a seasoned homeowner looking to downsize, A and N Mortgage is here to help you apply for a home loan and find an arrangement that suits you. Our in-house condo approval department can streamline the mortgage process and get you into your new home as quickly as possible. 

If you’re looking for help with your condo-buying experience, contact A and N Mortgage today!