One of the options in acquiring a property is buying a condo. There are many reasons someone might choose a condo. Condos are becoming popular among investors nowadays.
This article will discuss the different aspects of buying condos.
Buying a Condo vs. House
In buying remember that you also acquire the land underneath, whereas in buying a condo you only own the living space and part of the common areas of the building. There are differences, but the choice lies on the lifestyle of the dwellers.
Condo Pros and Cons
Urban living gave rise to condo buying either for dwelling or investment. Typically condos are located in the urban areas where the commercial districts are located. Its a walking distance to shops, office buildings, restaurants, etc. People are becoming busier these days and are attracted to condo living for convenience. Most condos have amenities like swimming pools and fitness centers which are costs are prohibitive if you buy a house. With condos, it comes for free. Actually not free because you are paying for it monthly via the association dues.
The main disadvantage with buying a condo is the association dues, which you have to pay monthly apart from the monthly mortgage payments. You pay monthly association fees for the purpose of maintaining the building and the amenities. This may increase as required when the building property management office sees there are shared expenses they will incur.
The main advantage of buying a house is you have total control over the property. You can repaint or remodel it without asking permission from others. You have extra space for indoor and outdoor which allows you to entertain your friends or relatives. Nobody complains if you have a pet too. You have more space for storage in attics, basement, and garage.
Owning a house means you have to do all the maintenance or as the homeowner, you are solely responsible for maintaining your house and its surroundings. It requires more time and money because you have to invest in more tools for the house. You have to allow more time for fixing, cleaning and other maintenance tasks.
Owning a Condo and Renting It Out
Due to fast paced life buying a condo is practical. The main thing you have to check is the location of the condo. Primarily it should be in located in the commercial districts. If you plan uptown living in Canada, check out the site of https://etobicokepinnacle.ca/ for available spacious condos with amazing amenities.
There are aspects to consider before you decide to buy a condo to rent it out or simply for investment purposes.
Proper Estimation Before Buying a Condo
Before buying one, do the maths and calculate to determine the right answer. When you plan to buy one you must estimate the following cost:
- Annual rental you will receive and your monthly mortgage payment
- Annual expenses you will incur like real estate takes; association fees; insurance
- Advertising costs to ensure your unit will be booked
- Estimate an amount for attorney’s fees if you require legal services in instances of bad tenant experience
- Repair costs in case of damage
Other expenses you have to factor in are association fees and condo assessment fees. Assessment fees are expenses used for common areas.
After doing the maths and you see that you have nothing to lose then go for buying a condo as an investment.
Before considering condo investment always do some calculations before you decide to see that you gain from it.