Condos
March 5, 2025
A condominium can be a great option for an individual or couple looking for the square footage of an apartment with the benefits that come along with home ownership. Below we define what a condominium is, what to consider before purchasing one, and the pros and cons associated with owning this type of property.
What is a Condominium?
A condominium, otherwise known as a condo, is a privately-owned unit within a larger residential building. In most cases, the owner individually owns the walls and the interior of the condo and jointly owns shared common areas such as pools, garages, and elevators. However, the larger building that houses the condo is owned by another individual or business. Most condo communities require residents to pay membership dues to a homeowners association (HOA) to cover the amenities offered.
Condos are similar to housing cooperatives (co-ops), but there is a notable difference that sets them apart. While condo owners individually own part of a building and its common areas, co-op residents own a share of the entire property. Also, unlike the owners of single-family homes and townhomes, condo owners do not hold a title to the land on which the building sits. As a result, the property value of the condo is based solely on the home itself.
Things to Consider Before Buying a Condo
Before finalizing the purchase of a condo, it is wise to visit the building several times. You will want to get an idea of whether the residents would make good neighbors and if the building is noisy or in need of repair. If you notice there are several units for sale at one time in a building that is not a new construction project, it could potentially be a red flag pointing to high levels of dissatisfaction among residents.
If you plan to purchase the condo as an investment property, there are a few other factors to consider as well. First, you should confirm the HOA allows for short-term and long-term rentals. This should never be assumed when purchasing a property, especially when there is an HOA involved. Additionally, research the town and surrounding neighborhoods to determine the levels of tourism and the growth potential of the area. If rental demand is expected to increase, it could be a sound investment.
Pros of Living in a Condo
Condo living can offer a significant number of benefits, especially for single individuals and couples who do not need the square footage offered by single-family homes and townhomes. Here are some of the advantages of living in a condo.
- Low Maintenance – Most condo communities have an HOA that covers exterior maintenance such as landscaping, trash removal, snow removal, etc.
- Affordability – Condos are typically smaller than single-family homes and townhomes and, as a result, are often more affordable.
- Amenities – Condo communities commonly offer pools, barbecue areas, clubhouses, dog parks, and more for residents.
- Security – Many communities hire security staff to make residents feel safe and to make it more difficult for non-residents to access the building.
Cons of Living in a Condo
While a condo may be a great fit for a single individual or a couple, they are often too small for families. Below are a few disadvantages to living in a condo.
- Limited Space – Condos typically offer less square footage and less outdoor space than single-family homes and townhomes, which is not ideal for families with small children.
- Less Privacy – Condos have shared walls and limited outdoor space, so it may be difficult to find privacy at times.
- HOA Costs and Restrictions – HOA fees generally go up over time to cover the rising costs associated with maintenance and amenities, and they may be restrictive with their rules involving pets, parking, storage, and more.
- Limited Customization – While you are free to customize the interior of your unit in most condo buildings, you lack the freedom to change most everything else.
There are several things to consider before making the decision to purchase a condo. Will the size of the indoor and outdoor space serve the needs of you and your family? Will you get along well with the other residents in the building? Is the building maintained properly? If the answer is yes to these questions, then a condo is likely a good fit for you.