As a new home buyer you have lots of choices as to what type of home to purchase. A condominium, or an apartment that you own, is usually located in an urban center or densely populated suburb. A condo is one choice to consider when you are buying a new home.
I’m Ilyce Glink and welcome back to Expert Real Estate Tips dot net.
If you’re in the market to buy real estate, there is a wide variety of homes you can buy. Today, we’re going to talk about condominiums, which can look very different depending on the individual property.
Condos became popular in the 1970s, which is when apartment rental buildings began to be converted to condominiums. Today, you’ll find plenty of condos in the suburbs as well.
Unlike a fee simple house, you don’t actually own your entire condominium. You own the airspace within its walls. You may also be responsible for the drywall and paint. You will also share ownership of the common areas of the property with your neighbors.
When you live in a condo, you pay a monthly maintenance fee, also known as an assessment. This typically covers the maintenance and upkeep of the common elements, insurance for those common elements, and any security or doormen in the building.
With some condos, you’ll also own a parking space and storage unit.
The interesting thing about condos is that they’re not always in tall buildings. They may be town homes, duplexes, four-plexes or a two-family house. You might even see what looks like a single-family house, but the ownership of the property is structured as a condominium.
In new condo developments, developers may control the condo board or homeowners association until a certain percentage of the units have been sold. And think carefully before you buy a condominium which is in litigation with the developer.
If you decide to buy a condo, make sure you have your financing locked in. Fannie Mae and Freddie Mac, which rule the secondary mortgage market, often refuse to finance the purchase of condos unless at least 70 percent of condo units are occupied by homeowners.
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