While there may be many benefits of buying and investing in a Condo, there are certain things to be taken into consideration while purchasing them. When a person buys the condo it comes with certain amenities such as the pool or the fitness system which doesn’t come for free but costs a lot of money. Even if the owner doesn’t use them frequently they are entitled to pay for it.
The owner is required to pay the homeowner association fee every month which goes for the maintenance of the property along with other fees such as the parking lot. The steady rise in the fees gives the owner risks of being priced out of their cheras new launch owing to affordability issues. There is also ample chances for mismanagement of funds on the part of the association. There is usually no transparency and can often lead to levy additional assessment on the owners in case of emergencies.
In a condo, there are people living across, above or just adjacent to the owner. Given the conditions as such, there is a lack of privacy. If a person wants some quiet time and peace of mind living, the condo is not the place for them. In a condo, there is a common sharing of financial responsibility to keep up with all the community buildings and amenities. When some owner doesn’t pay their dues, it can result in overburdening of financial responsibility.
Another potential downside is that condos can be difficult to sell. Large families or families with multiples pets or those who want a yard don’t opt for a condo. Living in a condo also comes with rules and regulations which may not go well with independent headstrong people. Some HOAs have an overwhelming number of rules and regulations that the owner needs to follow. They have limits on the number of visitors or the number of pets the owner can keep or the type of renovations they are allowed to make. These restrictions can be the major drawback of purchasing a condo.