Home Buyers Seminar - Lesson 7 - types of Homes Continued.

Home Buyers Seminar - Lesson 7 - Types of Homes Continued

In this lesson we will discuss Condominiums.  I guess the easiest way to understand the concept of condominium ownership is to visualize it as an apartment that you are not paying rent on, but you own it.  In the Charlottesville, Virginia area there has been a surge where developers have converted apartments complexes to condominiums.

With a condominium your ownership extends inward from your interior wall, ceilings and floors.  In additions you are also co-owners in the exterior structure as well as any amenities and common areas for example; parking lot, hallways, elevators, lobby, laundry room, pool, tennis courts clubhouse etc.)

When you are part of a condominium association one of the requirements is the payment of a monthly, quarterly or yearly condo fee which maintains the common areas and amenities as discussed above.  Part of these fees should build up a cash reserve for future needs.  In general all of the exterior maintenance are the responsibility of the association, although you will be charged (in your condo fees) for them.  However, there are times when it may be necessary for the association to assess (special assessment) all the owners for to cover the cost of a large repair.  For example a new roof, or having the parking lot paved.

Therefore it is important for new purchasers to be aware of the current financial status of the association, and if there are any special assessment on the way.  Your Realtor® will make sure that you have the condominium documents necessary to investigate the finances as well as the "Covenants and Restrictions" of the association.

Advantages of condominiums

First and foremost condos cost less that single family dwelling.  This makes home ownership possible for a larger number of buyers.  Usually you will be responsible for little or no exterior maintenance.  No yard to mow etc.  Condos usually have amenities like pool, laundry rooms, tennis courts and more.  Plus most condos are more likely to be located convenient to stores, town center, colleges etc.

Disadvantages

There are those monthly condo fees that you will be responsible for.  You may not have the privacy as you would with a single family property.  You only own the interior of the unit.  All exterior land and structures are owned in common with the rest of the owners.  Therefore, you definitely will not be adding on.  Also, in some areas there are quite a few condos so the time it may take you to sell could be longer.

In the next lesson we will talk a little about mortgage types etc.  If this is the first time you have viewed this blog be sure to go back and take a look at lessons 1 through 6.

Also, please feel free to ask any questions or make any comments.  Remember this is an open forum.