PROS Location Security Maintenance Amenities

CONS No Land Fees Community Association Resale Value

Pros of Buying a Condo

Location, Location, Location Unlike finding the right neighborhood close to everything you want, you’re much more likely to find a condo in a downtown area near everything you’re looking for. You may struggle to find a condo near family attractions and schools, but you’ll have an easier time being in walking distance to other amenities. If you’re specifically looking for a rental investment property, condos can be incredibly attractive. Since they often share amenities with a community and have private access to beaches, golf courses and more, a condo can often beat a home in terms of location.

Pros of Buying a Condo

Security Condominiums often come with some extra piece of mind with security features like buzzer, access cards or a guard service. While some homes include roaming security paid through HOA fees, having on-site security can deter most criminal threats. Additionally, having immediate neighbors provides an extra sense of security. For rental properties, condo security can be especially attractive if you have long periods where the unit is unoccupied.

Pros of Buying a Condo

Maintenance and Upkeep Not everyone loves keeping up with yard work and fixing things around the house, so a condo can make a great home for those who prefer to avoid chores. Landscaping and exterior upkeep is typically handled by professional staff, and your building will most likely have a handyman onsite to fix anything that breaks inside your unit.

Pros of Buying a Condo

Amenities An in-ground pool and tennis court are not within every homeowner’s financial grasp, but if you pay for a pool or other amenities with a hundred other co-owners, they are much easier to afford. Typical condo amenities and perks include tennis courts, pools, gyms and more that you will probably not find easy access to with a house.

Cons of Buying a Condo

No Associated Land Ownership One of the biggest perks of owning a home is the land it sits on. While a condo has many conveniences and shared spaces for residents, you only own your condo unit – not the land beneath it.

Cons of Buying a Condo

Fees While the amenities of a condo are nice, don’t forget that someone has to pay for all those nice things. (Hint: it’s you.) As a resident, you’ll be asked to pay monthly dues or fees to support maintenance, repairs and even new amenities. So don’t forget to use that pool every once in a while. Of course, condos are not alone in charging fees for shared services and amenities. Many first-time homebuyers are surprised to see their first call for HOA fees – you just have to consider your fees before you buy.

Cons of Buying a Condo

Condo Association We mentioned homeowners’ associations before, and you’ll have a similar board at a condo. You might find that the average homeowner doesn’t have the same experience as a property manager, leaving the association weak or inefficient. There are also rules you’ll have to follow called the Covenants, Conditions and Restrictions. Typically these include restrictions on noise levels, renovations, pet ownership, and can go as far as how you landscape your porch/doorstep.

Cons of Buying a Condo

Resale Value Condos are very sensitive to changes in the housing market, so they took a hard hit during the housing bubble. Condos have begun to bounce back, however, especially in tourist and vacation areas. One thing to remember if you’re buying as an investment property is that condos are often the first to suffer and the last to recover.

Financing Your Condo Just like buying a home, there are a few types of loans available for condos, but they may have some changes that you should be aware of if you are buying a condo for the first time. FHA Loans FHA loans can be attractive for homebuyers, but there are special restrictions for condos based on percent of the property used commercially, how much is owned by a single investor and the number of units that are delinquent on payments. Condos must be on HUD’s approved FHA list, which is available here.

Conventional Loans Condo loans will vary from lender to lender, and they are stricter than home loans. Lenders will look at a few important criteria, including: • Complex, costly lawsuits against a condo. Lenders like to avoid risk. • Your building and complex will need insurance against risks such as fire, hazard,

liability and flood insurance. • Percentage of owners delinquent on payments or dues.

Buying Your Condo

Purchasing a condo, much like purchasing a home, is a big investment, and there are many considerations to make in terms of lifestyle and financing. If a condo sounds like it may be your best bet as a first time home buyer, go for it! Just be sure to research and find out as much as you can about the condo unit you are looking to purchase!

Pros and Cons of Buying a Condo

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