The 5 Disadvantages of Condominium Ownership

In the past condominiums were not necessarily considered to be a good investment for a variety of reasons, however that image has since changed dramatically. With the high price of single family homes, condominiums and townhouses are becoming more attractive to many buyers such as singles, retiring couples that are downsizing and small families that would like to purchase in excellent school districts. However, for those home buyers that have only considered a single family home as the definition of homeownership they may not be familiar with what options are available in the form of condominiums.

Condominiums are buildings in which individuals separately own the air space inside the interior walls, floors and ceilings of their unit, but they jointly own an interest in the common areas that they share such as the land, lobby, hallways, swimming pool, grounds and parking lot. While many condominiums are designed to look like apartments or are built in high rise city buildings, more and more builders are designing them where they can be referred to as townhouses. Townhouses are usually attached to one or more houses and can run the gamut from duplexes and triplexes to communities with hundreds of homes

In addition to paying a mortgage, each owner is responsible for paying a monthly fee to the condo association, usually referred to as the homeowner’s association which is made up of the unit owners. The fee covers maintenance, repairs, grounds keeping and building insurance.

In the past condominium ownership suffered with a negative image for a variety of reasons, however that image has since changed dramatically. Once the thorn in homeowner’s sides, condominium associations have worked hard in recent years to clean up their negative image where disputes and lawsuits were once rampant. Homeowner’s associations have become savvier and much more professional about property management and have taken steps to prevent legal problems and disputes before they happen. However, there are some disadvantages that still need to be considered before you buy.

1) Monthly Homeowner’s Association Fee

If there is a homeowner’s association, you will usually have to pay a monthly maintenance fee that is separate from your mortgage payment. Many condominium owners factor this expense as similar to the costs they would have incurred for someone to do the lawn care and other maintenance if they owned a single family home. However, you should watch for unnecessarily high monthly charges and ask to see a copy of the latest financial statement from the homeowner’s association.

2) Less Privacy

There is also less privacy than with a detached single-family home. Communal living is not always desirable for some people and the noise level generated by living in close proximity to others can influence some buyers to simply look elsewhere. Usually, the biggest concern is about parking for the owners and for their guests. However, many condominiums are being designed with their own garages and have common parking areas available for guests.

3) CCR’s Can be Very Restrictive

CCR’s or Covenants, Codes and Restrictions are defined as the bylaws that govern the use of the property. Most CCR’s are reasonable, but some can be very restrictive. There usually are limits on the type of exterior changes or improvements you will be able to make to the property. In addition, you may find, among other things, that they prohibit or restrict pets and the renting or subletting of units. Make sure that you get a copy of the CCRs and review them (they usually have a summary booklet) before you decide to make an offer.

4) High Tenant Ratio

Also, make sure you find out the owner-to-tenant ratio. Because many condominiums are often purchased as investments, there could be a high percentage of tenants in the building. Although this trend is also changing, especially in condominiums which are located in urban areas where they provide convenient shopping, access to transportation and other amenities thereby attracting owners who intend to live in their condos.

5) Resale Value

In some real estate markets, such as Las Vegas and Florida, builders have overbuilt condominiums and townhouses and they are being sold at a loss. However, in other real estate markets they have held their value as an investment despite economic downturns and problems with some homeowner’s associations.

While some of these factors would discourage some buyers from purchasing condominiums, it may be just the right investment for others because it suits their pocketbook and lifestyle. In spite of these disadvantages, the high price of single-family homes in some real estate markets such as California and the influx into the housing market of more single homebuyers have made condos relatively hot national investments. A professional realtor can assist and guide you in showing you which are the great deals in your local market and city.

What You Should Know About the Ownership of Executive Condominiums

Executive condominiums are one of the best housing solutions that people go for today. In most cases, they are affordable and they can house a lot of people at the same time. There are various criteria to meet so as to be able to own an Executive condominium. Understanding the whole process can be of great help as it makes it much easier.

Documentation

There are different documents that one needs to provide during the process of application. Some of the documents that you may need to provide include income statements, marriage certificates, and birth certificates, NRICs among others. The best thing to do is to make sure that all the income statements are checked by the HR so as to ensure they are exactly what the HBD need.

Advantages of buying an Executive Condominium

There are different advantages that come with owning an Executive condominium. It is very similar to a private condo. In this case, there are facilities that the owners can enjoy and, usually, the facilities are meant for the use of the residents. The people applying for the Executive Condominiums can actually make use of a housing grant so as to get assistance with the purchase. The grant is given only to the eligible people who may not have applied for the grant at a previous date.

Renting the Executive Condominium

When you get your Executive Condominium, there are rules that govern how you can use it and one of the things that you will note is that you aren’t allowed to rent it out during the MOP in the first 5 years. MOP stands for Minimum Occupation Period. If there are other rooms within the Executive Condominium, you are allowed to rent them out within this same period.

Rules and regulations

There are different rules and regulations that govern the selling of an Executive Condominium. The owners need to fulfill MOP that covers five years. There is no transaction that can take place within this period and it has to be fulfilled first. After the five years that are set, the owners are at liberty to sell their units to other citizens or other permanent residents. After 10 years have elapsed, the Executive Condominium can be sold to foreigners. After the sale, there is a need to wait for some 30 months before you can buy any other flat directly from the HBD.

There are lots of properties being set up within the country and they are prestigious in nature. The establishments are usually able to offer lots of residential units that are luxurious. At some establishments, strata houses are usually included and most times they are exclusive. At times, shops and child care centers are also included so as to add to the convenience of the different residents.

Pools are also included with the establishments and they are very large ones in most cases. Different units are also made available and they include 1 bedroom units, 2 bedroom units, 3 bedroom compact units, 3 bedroom units, 3 bedroom plus study units, 3 bedroom dual key, 4 bedroom compact, 4 bedroom, 5 bedroom, penthouse, strata terrace, strata semi Detached.