The condominium market has ido rising steadily in recent years. According to the National Association of REALTORS (R), condominium values increased by more than 27 percent between 2000 and 2002, and the median value of condos ($ 163500) sat just below that of single-family homes ($ 168400) in mid – 2003. While this trend is not guaranteed to continue, the condominium market has regained momentum and the importance it had in the initial boom of condominiums the 1980’s.
Condo buyers are divided into three main groups: for the first time buyers to quit rent; people looking to buy a second home that will use part-time and retirees who are trading in high-end housing for low-maintenance a lifestyle from a Mayfair Gardens Condo.
A condominium can be a great purchase under the right set of circumstances, but some people still dismiss as glorified apartments. If you do not feel comfortable living in condominium rules and restrictions, and in close proximity to others, then a condominium is probably not the place for you. Before buying a condominium, be sure to understand exactly what is involved in condominium living.
What exactly is a condominium?
A condominium development can take the form of style apartment complexes, townhouses or become multi-family dwellings. What distinguishes it from other multi-tenant buildings is that the developer has legally declared that a condominium, and individuals can purchase units in the building or complex. In most states, this means that development is specially designated under the laws and regulations applied to condominiums.
When buying a condominium, the owner acquires title to his unit, until the walls, but not between them. A description of a condominium is a “box in the air.”
The common areas of development, such as stairways, dividing and exterior walls, gyms and rooftop gardens, are shared ownership. Each unit owner has any interest in these spaces. In order to manage the maintenance and repair of common areas shared, each condominium development has a condominium association, also known as a unit owners association. The association is elected by the owners of condominiums and makes decisions in the communal interest of the community.
Condo costs include:
* Arras, mortgage and property tax
* Condo fees, also known as maintenance fees. Condo fees are paid by all residents to help with building maintenance, salaries of groundskeepers, janitors or tasks, and provide facilities such as luxury swimming pool, gym or rooftop garden. Condo fees are paid monthly and are subject to change
* Special assessment rates. These rates can be requested when an unexpected repair or planned modification exceeds the cost of fees collected condominium
Rules to live by
Condominiums are governed by a set of rules called covenants, conditions and restrictions (CC & Rs). The rules vary from one to another condominium development. They can impose restrictions on ownership of pets, noise levels, remodeling projects, and rent. The CC & R are implemented by the condominium association. It’s a good idea to read the CC & R to make sure you’re comfortable with them before buying a condominium.
Condo associations and fees
The condominium association budgets and determines the fees for all condominium units. Condo fees are often determined by the size of your drive, how many units are currently occupied, and projected costs for building maintenance and repair.
Condo associations vary in their organization and experience. Some questions you may want to see are as follows:
* Whether the association to maintain a reserve fund to pay for the unexpected and potentially costly repairs? This will help determine whether it is likely to beat with a special assessment rates.
* Has the association maintains the building in good condition? Can Handle repairs and maintenance before they become major problems? Before you buy, is a good idea to get an inspection in the unit you fancy, as well as the entire structure in order to identify potential problems.
* Whether the association intends to add facilities, such as a swimming pool or gym, in the near future? This could cause a sudden increase in their fees. Ask to see the minutes of recent meetings of condominium associations, which should disclose any such plans.
* The development is pending lawsuits? Are there any conflicts between landowners, developers or the association you should know about?
* What is the reputation of the association in the building? Talk to other owners for comments or complaints about the activities of the association.
A word about developers
The developers do not usually maintain a long-term interest in a building, but the work they put into it is important. A home inspection can turn up major structural faults in the building, but not based on this alone. You should investigate the developer’s history, and find out if there had been any problem with its evolution. Also find out if the developer is still in business and whether it is financially stable. If the developer is no longer in business, its condominium association may have little or no legal recourse in the event of serious flaws are discovered on the property.