By Amanda Pilley | Condominiums fill a special niche in the housing market, somewhere between an apartment and a house. The simplest way to think about it is that a condo is an apartment that a person owns. Although a condo could look like anything, typically it will be one unit out of many in one large housing complex. Ownership includes the living space inside the condo unit and a portion of the common areas, unlike owning a home, where the owner purchases the house and the land. There are pros and cons to both types of housing, and lifestyle along with cost will be big factors in determining which is more suitable.
MONEY: Condos are a great choice for first time homebuyers, first and foremost because of the cost. Generally speaking, purchasing a condo is going to be much more affordable than purchasing a house. Don’t be surprised if the difference is $100,000. The caveat to that is that financing for condos will be different from that of a house and will depend on a persons’ lending institution, so if you’re in the market, it’s important to check.
Buyers also need to budget for the HOA fees when shopping for a condo. Homeowners Association fees vary between condominiums and can be costly. HOA fees are collected outside of the monthly mortgage fee and are used for building and property maintenance.
THE RULES: Part of living in a condo complex means that a person agrees to abide by the rules. Most condominiums have covenants, restrictions, and bylaws which are laid out by all the owners in the complex. These are the rules that dictate how the condominium operates, is governed, how owners can use their property, and that owners legally agree to. For instance, some condos prohibit pets. Others prevent owners from subleasing their unit or running a home business.
Living in a condominium is true community living and the rules are there to make sure that everyone feels safe and gets along.
LIFESTYLE: Living in a condo is very much a lifestyle choice and it’s not all about the money. Condos are popular for many reasons, not the least of which is their low-maintenance and their convenience. Some condos have amenities such as pools and fitness centers or a shared yard area. In urban areas condos are an attractive choice for busier people who want to be located within walking distance to shops and restaurants. Retirees who are more interested in socializing than keeping up on the exterior landscape and building maintenance will appreciate the freedom that comes with community living. Condos also make owning a vacation home more affordable.
That being said, owners don’t have total control over building remodels and can’t make changes without the consent of the other owners. Condos are typically more compact than a house and may be lacking in space which might not be accommodating to large families. Also, there is much less privacy in a condo, as there might not be anything but a wall between units.
When all is said and done, condos fulfill a very important spot in the housing market. They offer an affordable option for first time homebuyers, they offer otherwise unattainable access to amenities, and they offer a maintenance-free, easier lifestyle to those who have no interest in home upkeep. While they are no better or worse than any other type of dwelling, a condominium might be the home-seekers perfect choice.
Amanda has lived in Southeast Alaska for most of her adult life and recently moved back to Juneau for the third time. She is a graduate of Albertson College of Idaho with a degree in Creative Writing. To reach Amanda, please feel free to email her at amanda_pilley@hotmail.com.