Condos appeal
to many groups of people, but first time home buyers and older persons are
the primary purchasers. In general, condos tend to cost less than single family
homes which appeals to many first time home buyers. Because there is no exterior
maintenance, they tend to appeal to older people. "Empty nesters"
also like leaving larger houses for the convenience and increased safety and
amenities of a condo.
Because condo owners share ownership for common areas and because of the
close proximity of residences, condo bylaws are established to set certain condo rules
and manage the overall property. A condo association (group of owners within
the condo) is formed to enforce and change condo bylaws. Usually the condo board is elected
annually. Condo bylaws are usually very extensive and typically cover areas such
as noise, pets, common area usage, exterior decoration restrictions, interior
renovations, etc.
In addition, the common areas need to be maintained, cleaned and repaired.
Financial responsibility for common areas is shared by the owners. Typically
there is a monthly condo fee that is paid into a fund to cover maintenance,
repairs and cleaning. Generally this monthly condo fee takes into account extended
repairs needed in the future: the roof will need to be replaced every 15 years;
the parking lot will need to be resurfaced every five years, etc. For unforeseen
expenses, the condo association may call for a special HOA assessment for a particular
project (a one time fee).
Condo fees vary greatly and should be considered in determining affordability
of a property. On the other hand, condo owners do save on some general maintenance
costs because these are covered under condo fees. There is no cutting
the lawn, trimming hedges, painting the exterior of the building, shoveling
snow, etc. Many condos also have common amenities such as pools, work out
rooms, tennis courts, even golf courses. Many people purchase condos as an
investment, earning income by renting out the condo. High absenteeism of landlords
in a property is generally undesirable and can make it difficult to get mortgage
approval.
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