Buying a condo can sound like the perfect option. You will only be responsible for the interior while someone else takes care of the exterior for you. You’ll also have neighbors very close at hand, and you will likely have amenities you won’t find for any other type of real estate. These can certainly be selling points, but there’s always a price to pay for convenience. Dean Graziosi has broken down some of these costs for you to make the decision a little easier.
When you purchase a condo, you’ll be required to pay fees to an association. What you’ll get in return is a well-landscaped property and the responsibility of the exterior being handed over to someone else. This affords you a more carefree lifestyle, but it can also wind up costing you a lot more than you may have originally thought. If other condo owners fall behind in paying dues or many of the units stand empty, dues can be increased. Condo associations can also raise dues if significant repairs need to be made. Sometimes they will come back down after this has been accomplished, but this may not always be the case. You’ll want to ask the condo association if they have any plans to increase their dues any time soon.
As with any other type of real estate, you will be responsible for paying homeowner’s insurance and taxes. You’ll need to consider this when figuring out how much the condo will really cost you. Those costs on top of the condo price and the association fees can really add up.
You should also stop to consider how much square footage you are getting for the price. Most of the time, you’ll get more square footage when buying a house than a condo for the same price. You will also share at least one wall with a neighbor in a condo, so this is another consideration.
Factor in the cost of possible repairs. You never know what will go wrong and it always seems to happen when you least expect it. Though you will only be responsible for the interior, all the costs can mount up in a hurry. Plan for these incidentals as well as what you will be responsible for already as a condo owner and you can see how quickly they can really mount.
If you are considering the purchase of a condo, know what you are getting into before making the decision. This may be especially important to keep in mind if the condo will be a second home for you. Be prepared for all the costs you may incur along the way and ask both your realtor and the condo association questions. You can learn more about this topic by visiting Dean Graziosi’s real estate blog.