I believe you know what a condominium is, and that is why you picked interest in buying one or knowing more about it. 

condominium is usually shortened as a condo and is pretty popular in the western part of the world.

When it comes to buying a condo, is entirely different from buying a house. This means that owning a condo, you will likely have adjoining walls being shared with neighbors, as well as other physical elements that are different from other forms of a freestanding home.

When you go out to get a condo, you might discover that the process of getting one is different in a very significant way.

This is why I decided to write about how you can get a condo and the major important things you need to know about a condo and what it requires of you.

But before I dive straight into how you can get a condo, there are some critical major important things i want you to note if you must buy a condo successfully.

Before you enter the market to get a condo for yourself and your family, it is imperative that you understand the differences between owning and living in a condo versus a single-family home. This two are very different as I have mentioned before due to the lifestyle you might experience.

Most of the condos you might come across are usually less expensive and affordable to get by anyone. This is so because when the price is compared with a single-family home, you'll discover that it is usually low to maintain, this alone makes it a good option for any home buyers out there, or any individual on a budget looking to downsize.

One major disadvantage of condos is the problem of getting loans from lenders. Most lenders out there are very strict regarding owner occupancy and loan-to-value ratios.

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What Is Condo And Who Should Own A Condo?

According To Rocket Mortgage. A Condo is a type of housing and residential complex that consists of several housing units, with each unit belonging to an individual owner. This condominium can be rented from the owner of a condominium.

With this type of housing, the condo owner is expected to be responsible for whatever goes on within each unit being occupied, including maintenance and repairs. Beyond that, the tenants are expected to pay other fees to a condo association. With those fees being paid, it will take care of the maintenance of the shared common areas, building amenities, and other exteriors of the complex.

Who Should Own a Condo?

If you've been following the article from the beginning, you'll realize that I made mentioned of a condo is different from an apartment. A condominium which is known as a condo comes with what some people regard as disadvantages. One of which is sharing the same wall with neighbors, as well as other physical elements that are different from a freestanding home.

If you must get a condo, one thing you need to ask yourself is, "are you the type of person who can live in a con?". Why it is very important to put that into consideration because if you're the type of person who has spent almost all his time in the city as a city dweller, and you end up getting a condo in an urban place, you might find it difficult copping or living there.

In today's world, condos are usually springing up in the urban downtowns, and some of them are even building items of convenience right into the development, including grocery stores, bank branches, and other businesses. With that convenience may come more noise and congestion.

As an owner of a condo, one thing you need to know is that the ownership of a condo has to involve HOA (Homeowners association). This association is in place to ensure that it sets out a declaration for covenants, conditions, and restrictions (CC&Rs) that list things that you, as the condo owner, must comply with in order to live there. If you find that you won't be able to abide by the CC&Rs, condo life might not be for you. Non-compliance could mean you could be fined, forced to comply, or even sued.

One thing i want you to know is that, if it is your first time owning a property, then a condo might be the best choice for you since it is less expensive and has low maintenance cost compared to others out there.

In most cases, a condo can serve as an attractive feature to older folks who are looking for less of a home to physically manage. Condos can also be an attractive choice for the person who wants to be centrally located in a big city.

What You Must Understand When You Want To Buy A Condo

According To Investopedia. There are different things that you must put into consideration if you must own a condo of your own. Despite it being cheaper, and easy to acquire or maintain, you must ensure you know what you're getting into. One thing you must know is that you'll like face issues like:

Loan Issues

Purchasing a condo in some cases is difficult when compared to purchasing a house. A lot of lenders out there are careful when giving out loans to individuals in such kind of residence. The reason for this is not far-fetched from owners being high-risk borrowers.

Because of this, lenders must require that a percentage of the units have people living in them or the units being occupied.

Another major restriction is the number of condos allowed to be owned by one investor. In many cases, lenders do not want one person to own more than 10% of the units in a building. This is why you see them in many cases bringing regulations relating to the building occupancy rate. A high percentage of them require at least 90%  of the units to be sold before offering any financing.

There are also tougher loan-to-value (LTV) ratios and restrictions for those who want to buy a condo. An LTV ratio shows how much the condo is worth versus how much is owed on it.

Cost Involve

Despite it being cheap and easy to maintain, there are other costs involved when it comes to owning a condo of your own. With HOA offering insurance, you are expected to also carry out additional homeowner's coverage as well too. This is why it is very important to carefully read all the documents available at your disposal in regard to insurance offered by the HOA.

As an owner of a condo, you're also expected to pay a monthly condominium fee to cover any form of maintenance such as lobbies, elevators, pools, recreation rooms, parking lots, gardens, and grounds within the complex. After the purchase of the condo, some of the funds might be held in reserve for the sole purpose of large repairs, such as leaking or damaged roof replacement and exterior and interior painting. This is why you see the fees being different depending on the size of the complex and the basic amenities being offered.


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