Condominium Ownership is it for me,the Pro's and Con's

Recently the topic of condominium Ownership has come up allot. Here in Summit County Colorado much of our local population is being priced out of the market. With summit county's continuing appreciation and rapidly decreasing land many locals ask themselves can I buy a home in Summit County? Some have the option of a deed restricted property. This is where the Appreciation of the property usually cannot exceed 3% per year. The benefit is these properties are less expensive. The drawback is you are capping your future gains on a property in an area with rapidly increasing appreciation. Many have turned to Condominiums.

Condominium ownership is similar to an apartment you own. Your ownership extends inward from your interior walls, floors and ceilings. In addition, you are a common owner, with all the other owners in the complex, of the exterior structure (the foundation, exterior walls and roof) as well as any common areas and amenities (such as swimming pools clubhouses, tennis courts, play areas, etc.)

One of the requirements of condominium ownership is the payment of a monthly association or HOA fee, which covers general repairs and maintenance to the common areas of the complex as well. The sign of a good condominium HOA will have built cash reserve for future needs. In general, all exterior maintenance and repairs are the responsibility of the condominium association, although you will be charged for them, either through your association dues or a special assessment (a one-time charge assessed to all owners of the complex, as an example, a new roof or exterior siding.). The normal day-to-day maintenance of the grounds (like cutting the grass, shoveling snow and maintaining the pool) is also the responsibility of the association. Interior maintenance and repairs (like, replacing a dishwasher) are the responsibility of the individual owner.

In some areas like Summit County, a condominium may be the only consideration that fits within your budget. The reason is simple. In general, the same square footage will cost less in a condo setting than it will in a single family home or townhouse, due mainly to the cost of land. You can build many more condos than you can single family homes on the same amount of land. If you have children, pets or special equipment you should also pay special attention to the party wall agreement and the CC&R's. This is the rules regarding the shared wall and the covenants you have to abide by while living there. It may contain special provisions to what you can or cannot do and noise ordinances within the property.

Advantages of Condominiums

•·         You will be responsible for few or no exterior maintenance or repairs.

•·         Many condominium communities offer amenities (pools, play areas, tennis courts, etc.) you may otherwise not be able to afford.

•·         Condominiums are often located in locations convenient to centers of employment and shopping.

•·         Condominiums are often more reasonably priced than other forms of housing.

Disadvantages of Condominiums

•·         You will be responsible for payment of Condominium Association fees.

•·         You may have less privacy compared to single family homes or townhouses.

•·         You only own from your interior walls inward. The rest of the structure and the land is owned in common with the other condominium owners.

Condominiums can be a great option, affording you the ability to get into a property in one of our beautiful cities here in Summit County Colorado.

Jason & Deanna Long are local Summit County Colorado Real Estate brokers, and focus on second and vacation home properties in and around the Breckenridge area.

www.ski-homes-breckenridge.com