The best part about owning a condo is that your condominium sets you on the path to financial freedom. The worst part about buying your first condo is that buying a condo usually costs more monthly cash flow than renting an apartment.
While it often costs more per month to buy than to rent, in most cases, all that extra money comes back to you at the end of the year in the form of tax refunds. Best of all, next year your mortgage will be the same amount and your debt will be reduced. With an apartment your money is gone and your rent will surely have a rent increase. Before deciding to purchase a condominium, it is important to do your research into both the legal and practical aspects of owning a condominium.
What is a condo?
A condominium is real estate with certain specific properties. Although there are various types of condominiums, the most common legal arrangements involve individual ownership of each unit, with joint ownership of the communal or common areas by all of the residents in the building. Condominium developments can be commercial or residential.
In the case of residential property, a condo can be composed of one or more a high-rise buildings, garden-style buildings, townhouses and---in special causes--even consist of individual houses. While some condominiums are located in large multi-unit buildings, others may be detached form each other and be located in a gated or planned community. Some condominiums may be located in resort or vacation destinations.
Most usually, a condominium is a housing unit or apartment in a multi-unit building in which each unit is individually owned, with common areas and the property in general jointly owned by the residents and the owners of the building, or all of the residents together. So the structures that make up a condominium complex are divided into living units, which are each owned by individuals. Jointly, these unit owners all have an interest in the rights and duties of the common areas, such as the parking lot, lobby, roof, etc.
What types of condominiums are available?
You might be surprised to learn the variety of sizes found in condominiums. Condos range from studios and one bedroom apartment on up. You may even find three or four bedroom condos. Of course, the penthouse suite is often quite nice on the top floor. Even condominiums with the same number of bedrooms can have different floor plans and different numbers of bathrooms and half-baths. For example, there are 2 bedroom 1 bath configurations; and 2 BR 2 BA configurations.
Why choose a condo?
People choose condominium life for a number of reasons. Some condos are less expensive than a traditional single-family house. Additionally, many condos have added amenities and facilities which an individual cannot afford on his own. Most condomiums have amenities you won't find on a similarly priced single family residence.
For example, a typical condo has (at minimum) a pool, a work-out room, and party room. A similarly priced house would not enjoy these amenities. Another benefit of condo living is that owners share in the burden of maintainance and lawn care. This means that some of the exterior maintainance and lawn care is provided by the condo association and the expense of that care is part of your monthly condo fee.
Many older condos have utilities included in the price of the condo fee. In new condos it is more typical to share the cost of water, but individually pay for other utilities.
Condo life in some ways is simpler for active lifestyles. Many condo owners choose condo life because they love life and they don't want to be bogged down with maintaining a lawn or cleaning gutters. A condo owner can walk out the back door and enjoy a dip in the pool while the other guy is spending time writing checks to pay his utilities.
Details about condo ownership
As with any home purchase, location, size and price are important. With a condominium you'll also want to understand the ownership scheme. This type of information is found in the "condo docs" or condominium documents. Most states, and the Commonwealth of Virginia, require condo doc disclosure before any purchase contract is finalized. The condo docs will contain detailed information on the ownership and property rights of the condo and its owners. The rules of the homeowners association are generally explained in the condo docs in plain English and not in legal jargon. It's important to read the condo documents to understand the annual maintenance and upkeep fees, as well as to obtain a full understanding of exactly how much control the association have over the regulation of the property.
Condominiums can be found all over the country, with more being developed each year. Condominiums are quite common in Northern Virginia and the National Capitol area. Some condos are new construction and a few are apartment buildings that were rental apartments before making the switch. In newly constructed condos, it's common to find a sales office onsite at the condominium.
Buying a condo
Potential condominium owners can make an appointment to meet with on-site staff sales agent to discuss interest in condo ownership. However, when you're in the market for a condo, it's a good idea to employ your own Condo 1 real estate agent rather than rely on the services of the condominium staff. There is a difference!
On-site are employed by the builder. As such they are motivated to show you why their development is a fine development. On the other hand, a Condo 1 agent works for you and has no reason to drive you toward a particular site or building. I want to find the best property for you.
Whether you're buying a used condominium from a condominium owner or a new condo from a condo office, it's a good idea let Condo 1 take you on a guided tour of facilities and the units that are available for purchase. Your real estate agent will have an understanding of the condominium ownership structure and the condominium documents and the real estate agent can explain what this means to you.
Costs of condominium ownership
Besides total cost of the property, you should also inquire as to the annual homeowners association costs. These fees are usually charged in order to pay for the upkeep and maintenance of the common areas. Owning a condominium can be one of the largest investments you make, so make sure that the one you choose can accommodate your specific needs. Purchasing a condominium can be a great way to buy a property in the location you really want with all the amenities you seek.
Find a condo
Click here to search live data on condos currently for sale in the Northern Virginia, Washington Metro market. We specialize in Alexandria, Arlington, Falls Church and parts of Fairfax County. If you would prefer, you can explain what you are looking for and we'll do the work for you. Call 703 765 0300 anytime with questions.
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