Condominiums are bought and sold like homes, but for less than homes for the most part. Despite all the good parts of apartment life and owning a home in one for less money than a house, there are a few condo downsides one should be familiar with. Article source:
Condominium Drawbacks
Huge troubles for someAccording to Realtor.org, the average condominium price is less than the average home price in the country. Condos are averaging $172,900 while homes are averaging $172,900. The condos are basically like apartments when it comes to amenities but you really own it. There is no yard work and they are close to urban centers. There are a ton of benefits to owning a condominium, but downsides cannot be forgotten.
Pay up with any voteTo start with, according to a column on San Francisco Gate, site for the San Francisco Chronicle newspaper is association fees. Condominium ownership means being matter to a home owner's association; maintenance and upkeep of the building and grounds is collectively paid for by residents through monthly association dues. If more repairs are needed, more is demanded.
Also, according to Findlaw.com, a legal info site, many condos and co-ops are converted apartment buildings that might be numerous decades old. More repairs may be needed than the owner is aware of.
There is a cause of owners associations, but they are also impossible to get away from. They are essential because they keep the values high, but they can get an individual kicked out of their home for breaking certain rules. One woman named Kimberly Bois was sued for $13,800 in fines and attorney costs by her condo association because she planted flowers, which was apparently against the rules, according to ABC.
Everyone deals with Transaction rulesAccording to Realtor.com, rules can even be made about who is allowed to purchase a condominium at a particular building. The potential buyer is under possibly more scrutiny when looking to buy and the potential seller has to have the sale approved by the board. That can mean, possibly, a longer sit on the market.
Depends on number of units ownedA developer can build a condominium building with only a few owners and take control of the property. It certainly matters how many units there are in the property that are currently owned.
One time, a developer purchased the building after a previous owner fell into foreclosure. The developer got 90 percent of the ownership stake and could make whatever decisions he wanted. Eleven owners of condo units wound up having to pay mortgages and rent on top of it because of this, according to ABC. To be able to keep away from issues like this, you should always check the state laws and all condo-fee laws.
SourcesSan Francisco GateFindlaw
Realtor
Topic: There are a few severe condominium downsides (Read 5424 times)
