2 Things To Understand About The Unique Cost Of Living In A Condo
If you don't the responsibility that comes with purchasing a single family home, or you just don't need all of that space, a good alternative is a condo. With a condo, you are not personally responsible for taking care of so much space, both inside and outside. There are a few things you need to understand though before you start looking at condos for sale.
Condos Come with Fees
When you purchase a condo, in exchange for not having to worry about replacing missing shingles on the roof or mowing the lawn, you have to pay a fee. Condo communities require you to pay an association fee. Association fees may be billed monthly, quarterly, or annually depending on how the association is set-up.
These fees will cover the tasks that you don't want to do. These fees will ensure that the roof is in good shape and that the siding is taken care of. These fees will ensure that the outside of the condo is well-landscaped and maintained without you having to do anything extra. Condo fees are an extra, build-in, long-term cost that will lower the time you have to invest in taking care of your place while increasing your long-term costs as well.
You need to make sure that you can afford not just to purchase the condo, but to pay the fees associated with the condo each year.
Know What the Fees Include
In order to determine if you can afford the fees, it helps to know what exactly the association fees cover. Some association fees just cover maintenance and insurance. However, other association fees include other extras.
Some examples of extras that the association fees may cover include such things as: snow removal, water, sewer, trash, fitness center, clubhouse, pool, tennis court, heating and electric.
If your association fees are going to cover your water, sewer, trash, heating and electric, you may be able to afford a higher fee since your monthly utility bills will be reduced. Really look at the value that comes with the association fees to determine what other costs they will reduce for you. This will give you a more accurate idea of if you can afford the fees and what benefits you will get out of belonging to a condo association verses being an independent single-family home owner.
When buying a condo, make sure that you understand how the association fees how and how they will benefit you. The association fees are really what make living in a condo a little more stress-free compared to living in a regular single family home.