One thing many people are confused about is whether they should continue renting or buy their own home instead. With the pandemic and all, it can be tricky to come up with the right decision. While home prices continue to surge, there are affordable home loans available for buyers.
Some people would rather invest in a condo than in a single-family home. It can be easier to find a condo in the city than an affordable home. They can thrive in a shared building and don’t mind having lots of neighbors.
It is never safe to assume that you are a condo person. You need to consider if you are really cut out for condo living. But if your mind is already set on making a condo purchase, it helps to consider the following condo facts.
Know Your Condo Living Costs
Your condo expenses go beyond the purchase sale, closing costs, moving costs, and utility expenses. There’s the usual mortgage payment if you bought the unit with a mortgage. There are also the association dues for the condo maintenance and other amenity fees for additional amnesties.
Don’t forget about your condo insurance. There is a need to invest in comprehensive HO6 insurance to make sure your interiors are covered. Standard condo insurance already protects your unit against
- Personal property damages
- Interior damages
- Medical payments for insured guests
- Personal liability
Condo owners only need to buy insurance for the walls-in of the unit. You are also responsible for maintaining the interior areas of your unit, like your appliances, HVAC system, and the like. Your condo association’s master policy will take care of the exterior elements.
Remember to include in your budget your monthly emergency funds. This should cover other condo expenses like maintenance, decor, furnishing, and pest prevention and treatment.
Relying on Verbal Agreements
One major no-no for buyers wanting to purchase a condo unit is to only rely on the sweet talks of your real estate agent. Some agents would use every tactic possible to sway buyers into signing the deal. You want to make sure everything you have agreed upon is written in the contract.
If you have any concerns, ask your questions right away. Have everything you agreed upon included in the written agreement. This should include your responsibilities as a buyer and the developer’s duties.
Your contract should clearly indicate what you and your developer expect from one another. This should also include what kinds of activities the developer restricts in the area. This way, you know exactly what to expect.
Decorating Your Space
One perk many condo owners love is having greater flexibility to design their smaller interior space. Sure, most units in almost every condominium building will have similar sizes and layouts. But condo owners often have the final say on how the layout and design will be.
As long as your decisions won’t negatively impact your neighbors, you won’t have a problem with how you can design the space. The only problem is when you start decorating the small space only to find that you have much less space to work on. This is why it pays to consider your spatial needs before investing.
Now, if you are already stuck with a smaller than usual condo, don’t lose hope. There are still things you can do to decorate the small space. The trick is to make use of your vertical space and create an illusion of a bigger space.
Renting Out Your Condo
If you are looking for ways to earn some extra cash, know that renting out your unit can be a great way to do this. You become a landlord and have someone pay for your monthly dues while still keeping the property. This is one reason why many buyers would buy multiple units at a time.
Before your rent out your condo to someone else, make sure you already got the basics covered. Know how much freedom you have when it comes to leasing out your condo. Check with your homeowner’s association (HOA) and review the rules since your tenants will also need to abide by their existing rules.
How much money you can get each month out of your unit will depend on many factors. For best results, check the rates of nearby units. You will also need to consider major factors, including your repair fund and how much you furnish the unit.
There are more expenses to think about aside from the upfront costs. Many preparations are needed before you even move in, design the space, or even rent it out. Consider all these factors before making your final decision to make your condo-buying experience a more worthwhile one.
