BUYING A CONDO IN THIS RED HOT MARKET

Whether you’re looking for a low-maintenance home, a downtown pad or a vacation getaway, condominiums, or condos, offer many attractive features. They’re typically a more budget-friendly way to access homeownership, especially if you’re in a high-priced city.

Condos can also be fairly sound long-term investments for people who want a holiday escape for a week or two and then rent it out the rest of the year.

In recent years, condos have gained popularity, likely due to the shortage of affordable housing supply and the feverish demand for real estate. In March, existing condo and co-op sales shot up by 29.1% from the same time last year, according to the National Association of Realtors (NAR). There were 710,000 condo sales this past March compared to 550,000 the year before.

Pros and Cons of Buying a Condo

Here are some advantages and disadvantages of buying a condo rather than a single-family home.

Pros of Buying a Condo

• Condos are usually cheaper
• Condos require less maintenance
• More options in terms of location and budget
• You might have access to more amenities (pools, gyms, etc.)

Cons of Buying a Condo

• Less private outdoor space
• Can't add rooms or change the outside dwelling
• Might have to join an HOA
• The HOA may have restrictions on what you can put on your yard or balcony
• Share walls with neighbors
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Bottom Line

If you’re considering a condo life, ask yourself what your goals are and what they might be in the future. If you want to live in the condo full time, make sure the building lifestyle is in line with your preferences. Some condos might put an emphasis on social gatherings while others prioritize privacy and maintaining a quiet, peaceful atmosphere.

Likewise, if you plan on renting out the condo for part of the year, find out what the HOA rules say about rentals. Some HOAs are lax about renters where others have very strict guidelines.

Be sure to talk to people who lived in the condo community for several years. Longtime residents will be able to give you insight into daily life that you won’t get from a 30-minute tour.

Find out about the people that live below, above and next door to you. Living in proximity to your neighbors can be a great thing or a terrible thing, depending on the people. So the more you know about the living situation before you sign a contract, the better informed you will be about whether or not this is the right place for you.