Disadvantages of Condos
1. Monthly Fees: Residents of homeowner’s associations typically pay a monthly maintenance charge in addition to their mortgage payment.
Many condominium owners compare this cost to gardening and other maintenance charges for a single-family house. Beware of excessive monthly fees and request the homeowner’s association’s latest financial statement.
2. Lack of Privacy: Privacy is lower than in a separate single-family home. Some individuals may not want communal living due to the loudness associated with living in close proximity. Also, parking is often the main worry for both owners and guests.
3. Strict Laws: Covenants, Codes, and Restrictions (CCRs) are property use bylaws. While most CCRs are appropriate, some can be strict. Limited exterior modifications or improvements are typically allowed on the property. In addition, some may prohibit pets and restrict renting or renting out of properties.
4. Resale Value: Las Vegas and Florida real estate markets have overbuilt condos and townhouses, which are being sold at loss. However, in other real estate markets, they remain valuable investments despite economic downturns and issues with homeowner’s organisations.
5. High Tenant Ratio: You should check the owner-to-tenant ratio. As many condominiums are purchased as investments, there may be a high. This high ratio might spoil your experience of buying a condo.