what are the disadvantages of condominiums

What are the disadvantages of owning a condo?

There are several disadvantages of owning a condo, and here are some of them. Mortgage and Other Fees. Fees for condos don’t diminish once you paid up the mortgage. On the contrary, they increase over time. Tenants in the condo share the costs, but what they usually find out is that there are far more expenses than they were anticipating.

What happens when you buy a condo in a community?

When you buy a condo, you essentially become a business partner in that community. You pay a monthly homeowners association (HOA) fee each month, on top of your mortgage, which goes toward the upkeep of the property, as well as future investments such as parking lot resurfacing or the addition of a dog park.

What are the problems with parking in a condo?

The Problem with Parking Lot. Parking is as painful as possible. Once they examine advantages and disadvantages of paying for a parking spot, many condo owners tend to park their car outside, and leave at risk of vandals. And when owners have guests scheduled for a visit, first thing they warn them is parking.

What are the advantages of condominiums?

There are many advantages in buying and living in a condominium compared to buying a house and lot. The following advantages are: Location. Many condominium unit are built in an area that is convenient, and practical. Many projects are accessible to public or mass transportation, near commercial areas, schools and offices.

Is there a downside to buying a condo?

CON: Steep HOA fees in condo communities can outweigh the financial benefits. Condo communities may have gyms, swimming pools, community theaters, and play areas that require expensive maintenance.

What are the advantages of a condo?

Advantages of Buying a CondoFlexible Living. ... More Affordable Than Single-Family Houses. ... Cheaper Insurance. ... Great Sense of Community. ... Proximity to Entertainment & Business Districts. ... Top-Notch Amenities. ... Appliances Included. ... Covered Maintenance.More items...

Why I prefer a condo over a house?

A condo is usually less expensive than a free-standing house. Condos are much smaller in square footage, and maintenance is typically cheaper because you're only responsible for the interior of your home. You don't have to worry about landscaping, the roof or the exterior walls. The condo board or HOA covers those.

What are the disadvantages of condominiums Philippines?

Disadvantages of Buying a Condo for sale in the PhilippinesCondo fees are prohibitively expensive. Because of the high monthly association dues, a condo eventually costs more to own than a house. ... Internal Space Is Limited. ... Less Freedom in a Condo for Sale in the Philippines. ... Absence of tranquility and discretion.

How long do condos last?

Advanced technologies are increasingly put to use, so modern condos will likely still be in good shape even after 50 years. And as previously mentioned, you're a shareholder of your condominium corporation. Your vote—and other shareholders' votes as well—matter.

Do condos hold their value?

Do Condos Appreciate In Value? Although properties can appreciate in value faster if they're in a desirable location, the fact remains that most condos appreciate in value at a slower rate than single-family homes.

Do you have to pay property taxes on a condo?

Do You Pay Property Taxes On A Condo? You'll have to pay property taxes whether you're buying a single-family home or a condo. Glenn Carter, real estate investor and owner of Condo. Capital, said that the property taxes are generally the same for a condo costing $200,000 and a single-family home at the same price.

What do you actually own when you buy a condo?

A condominium is one of a group of housing units where the homeowners own their individual unit space, and all the dwellings share ownership of common use areas. The individual units normally share walls, but that isn't a requirement.

What are the advantages and disadvantages of condominium?

Pros and Cons of Buying a CondoProsConsMay be easier to afford than a single-family homeHOA and maintenance feesLocation, location, locationAbide by the HOA rulesIncreased securityMay have limited parkingAmenities like a pool and a gymLess storage space3 more rows•Jul 15, 2021

What happens to a condo after 50 years?

What the law refers to in the 50-year rule is the lifespan of a corporation which is essentially the same to unit owners who make up the condominium project. However, the condominium corporation can actually be renewed for another fifty years so the ownership does not necessarily end.

Which is better house and lot or condominium?

Condominiums are typically less expensive than house and lot, but you have to pay attention to condo dues set by the HOA. A condo is usually less expensive than a house since it is much smaller in square footage and maintenance is typically cheaper because you are only responsible for the interior of your unit.

What are the pros and cons of a condo?

Pros and Cons of Buying a CondoProsConsBuild home equityNo land ownershipMay be easier to afford than a single-family homeHOA and maintenance feesLocation, location, locationAbide by the HOA rulesIncreased securityMay have limited parking3 more rows•Jul 15, 2021

What are the pros and cons of renting a condo?

The Pros and Cons of Condo RentingCondo renting may be a great alternative to living in an apartment complex. ... Pro: Private Ownership.Pro: Better Appliances.Pro: More Room for Negotiation.Con: Lack of Professional Landlord Experience.Con: Less Protection.Con: Taxes and Other Payments.

How is owning a condo different than a house?

Condos are single units within a larger building, so you can have neighbors above, below and next to you. Owners of single-family homes purchase the home structure and the land it sits on, while condo owners own just the unit they live in, not the larger building or the land on which it's built.

Why are condos so popular?

Condos also make it easier for people to live in desirable locations, including trendy inner-city neighborhoods and attractive seaside towns. The benefits do come at a cost, however, with the disadvantages of the condo lifestyle either a nuisance or a deal-breaker depending on your perspective.

What are condos in real estate?

Condos are often seen as a clever new choice in real estate . Not only are they more affordable and easier to access than conventional dwellings, they also provide numerous lifestyle benefits. For example, condo residents generally have access to amenities such as gyms and pools, along with shared outdoor spaces, parking, reliable utilities, and modern Internet infrastructure.

What are condo fees?

Condo fees are designed to cover the maintenance of common areas and assets, such as swimming pools, hallways, and staff wages. These fees vary considerably depending on your location, the size and age of the building, and the number of amenities available to you.

Is it harder to rent a condo?

Condos can also be harder to rent out or sell in some markets, although this differs considerably between cities and neighbourhoods. Last but not least, it may be harder to obtain a mortgage for a condo, with some lenders seeing condo projects as a riskier investment.

Do you own the exterior of a condo?

Unlike a house purchase, you do not own the exterior of the building or the surrounding land. Depending on the market, this may make it more difficult to build equity and capitalize on your investment, with condo prices more likely to ebb and flow over time.

What are the amenities of a mid range condo?

The many amenities in many mid range residential condo projects is almost complete that the buyers don’t have to go to other places to swim, work out, relax and entertain their guests. The people maintaining the building also will handle the maintenance of the gardens, cleaning of the common areas and parking lots, removal of trash, 24-hour reception and security, and screening of people wishing to visit the occupant. Many condo units when finished are ready to live in, with a few minor touches to do. A building administrator for a mid cost condominium related that there are buyers who have their own houses and apartment units, but they prefer to live in their mid cost condo units, because of the conveniences and security for the area. One occupant related that he could just instruct the guard to call the taxi for him anytime of the day or night. And the maintenance is much cheaper than maintaining a house. Unlike living in a house, one does not have to bother opening and closing the front gate for the arrival or departure of the car, either by oneself of the household help.

Is the price of condos debatable?

Price. The price of condos is debatable. Usually it is very high for most people. Even for the ordinary OFWs, the condominium projects need to be accredited by the PAG-IBIG for them to be interested in the units. The OFWs need to avail themselves of a bigger loan with longer payment terms and lower interest from the government. But given the convenience of the location and the amenities, the price is generally justifiable.

Can you repaint a condo?

Restrictions. In terms of exterior design, the buyer cannot just renovate or repaint as he pleases, since there has to be some uniformity for all the units which is specified in the house rules of deed of restrictions. For example, one cannot just repaint the front door brown if the colors of the front doors in the condominium are white. Some condominiums would only allow certain color shades for the curtains and venetian blinds of the unit occupants. This is to ensure that the unit looks clean from the outside. The administrator and security guards will most often give up on reiterating the house rules to some hardheaded residents, so they begin to tolerate minor infractions of the residents. But if the developer and association have a reputation and imeage to protect, even minor infractions are not tolerated. Most, if not all of the condominium associations would strictly not allow anything that will affect the structural design and integrity of the building. These include the breaking down of conrete walls to create more space, moving the bath tub to another location, changing the size of the windows, moving or removing of sprinklers and smore detectors, etc. Some condos will not allow buyers in the upper floors to change the wooden floor parquet to floor tiles to granite or any other heavy flooring due to the weight it will add to the computed bearing load of the floor. Even if there are open spaces and many amenities in large condominium projects, gone are the days when children can pick up fruits from trees of their own or their neighbor’s backyards. There will be no more climbing and playing around trees anymore in condominium projects. Adults who love outdoor gardening can no longer engage in their past time since majority of condos do not have enough space for real private gardening. Pets will have to be limited to ones that fit in small cages, aquariums or containers.

Is it possible to find a perfect condo?

It is impossible to find a perfect residential condominium or house; there will be always pros and cons in buying, and living in one. Generally, you get what you pay for, that is, the more expensive the unit, the better the location, the features, amenities, unit size, parking slots, etc. But the majority of condo buyers will not be able to afford the high-end or luxury units, so a number of them will encounter some problems. The disadvantages and usual problems are the following:

Do you have to be logged in to post a comment?

You must be logged in to post a comment.

What Is a Condo?

A condo is like an apartment that you own, right? Sort of. But there are some big differences between an apartment and a condo.

What is condo in real estate?

Condos can be townhouses that are attached on one or both sides to another unit. Or, if the condo is in a larger building or high-rise, it might be surrounded by other units.

How much does a HOA cost?

In 2005, the average HOA fee was $250 per month; by 2015, it had gone up to $331. Of course, where you live plays an important role. For example, the average HOA fee in New York City is $571 per month, while the average in Charlotte, North Carolina is only $218.

Why is it important to live near a thriving downtown?

Living near a thriving downtown also makes it easy to visit new restaurants, go shopping, and check out live shows. If you can walk or take public transit, you’ll likely find that you get more exercise because it’s easier to get out and about. Also, condos located in prime neighborhoods might increase in value faster than condos in the suburbs, which can make them a worthy investment.

Why are condos appreciated slower than single family homes?

5. Appreciation. In years past, condos typically appreciated at a slower rate than single-family homes because single-family homes are more appealing to more people. More importantly, you get land when you buy a home, and land is a huge factor in appreciation. However, this is changing.

How much did condos increase in value between 2012 and 2017?

However, this is changing. Citing research conducted by Trulia, The Washington Post reports that the market value for condos rose by 38.4% between 2012 and 2017, while the value of single-family homes only rose by 27.9%.

What are the benefits of living in a condo?

1. Less Maintenance. One of the biggest benefits of living in a condo is that other people do the maintenance for you. They cut the grass and maintain the grounds, they fix the roof and shovel snow, and you don’t have to worry about finding someone to replace the siding.

Why do neighbors hear my conversations?

Another problem is insulation. If the insulation is poor, you have no privacy. For instance, your conversation may be heard by your neighbors. Do you really want Nosy Nellie to know your family dirt? Neighbors may also hear your doors closing. Also, if you have downstairs neighbors, they may hear your toilet flushing or even your footfalls if you have on hard shoes. (When I said no privacy, I meant it.) In addition to privacy issues, it’s easier to hear a neighbor’s television or radio, and vice versa, because of the poor insulation.

What happens if you don't have a leash in a condo?

One problem is other people’s pets. If other condo owners don’t obey the leash law, you may find someone else’s dog on your leg. Also, you might be the unlucky recipient of a late-night barking serenade if someone is walking his/her dog in the evening.

Is a condo your home?

In conclusion, a condo is not really your home. Living in a condo has a lot of the advantages and disadvantages of renting an apartment. However, if you want to leave, you have to sell it. So, before owning a condo, you might want to try renting one first. So, you think you want to own a condo. You want smaller space. You don’t want to deal with mowing the lawn or shoveling snow. Fair enough. However, you should definitely look before you own. Yes, condos have a downside.

Is it better to live in a condo or rent an apartment?

Living in a condo indeed has a lot of the advantages and disadvantages of renting an apartment. However, every type of residence would have their own sets of disadvantages too. Getting and living in a condo unit might face you with possibilities of all the mentioned problems, but if you plan properly ahead and picked out a unit made by a trusted developer within a good community, just like the ones Condo wizard offers, you’ll significantly lower the hassles of owning and living in a condominium.

Do condos have a downside?

You don’t want to deal with mowing the lawn or shoveling snow. Fair enough. However, you should definitely look before you own. Yes, condos have a downside.

Do condo owners vote on security?

Another downside is voting. Yes voting. For instance, in some condos, owners vote on whether or not the condo entrances are locked in the daytime. Do you really want other owners determining how secure your home is?

Can you change the blinds on a condo?

Another problem is decorating your home. Some condos don’t allow you to change your front door or the blinds on the windows or patio. Also, if you want to have work done on your condo, it has to be approved. (Oftentimes, the company that does the work has to be approved, as well.)