Condominiums tend to provide homebuyers with an affordable way to enter the real estate market compared to houses. But there are a number of fallacies in the marketplace which may prevent some from looking at purchasing a condo as a viable option. Within this article, we’ll examine three commonly believed fallacies and attempt to clear up the confusion on the subject.
1. Condo Fees Are an Added Expense Over House Ownership
Some home buyers are put off from the idea of buying a condo due to the monthly condo fees owners are obligated to pay to live in the building. However, don’t have a full understanding of what’s covered by these fees.
The typical condominium agreement will see a portion of the monthly fees going towards building maintenance and general upkeep requirements. This can often be a great comfort, especially when you know you don’t have to shovel all that snow in the winter time from your driveway!
The monthly condo fee may also include heat, water and garbage collection – costs which, if you owned a house, you would be paying for directly out of pocket. Remember also that everyone in the condo will be paying these fees, even the condo directors who decide the amount. It’s very rare for condo owners to make any profit on the fees that they charge to residents of their buildings.
2. You Can Never Make Alterations to the Interior Structure
Some decide that owning a condo is not for them because they believe they won’t be able to have any control over addition to the interior of their home. However, many condo boards do allow condo owners to change areas of their property so long as other residents of the building are not affected by the changes. Make sure that, before you dismiss the idea of buying a condo entirely, you go to local buildings and review a standard lease agreement. You may find that there is far more ownership flexibility than you had imagined.
3. Condos are only Suitable to Younger, Single People
One of the latest rends in condo buying has seen families take over the marketplace. Where one it was true that the major of people that were purchasing condos were young single people between the ages of 25 and 35, now families with young children are purchasing condominiums in drives in order to take advantage of the low cost of living that condo life offers compared to purchasing a home.
4. Home Prices Always Go Up Whereas Condo Prices Can Go Up and Down
We’ve seen recently in the North American economy the effect that misplaced trust in the housing market can have. While there is no way to completely protect your money if you’re purchasing property, a condominium in a metropolitan area is generally always considered a safe investment because demand is never likely to fall. Home prices tend to be more volatile and more prone to reacting to changes in the local real estate market.
Don’t Believe the Stories, a Condo Might be Right for You!
Ensure that you’re not put off checking out that dream condo property because of some poor advice based on misguided market information. Conduct your own research into the condo purchasing process and see how viable and affordable condo ownership can truly be!