Condominium Living
Q. We are retiring to the Hampton Roads area and are thinking of buying a smaller home. Because we do not want to do a lot of exterior maintenance, one of our considerations is a condominium. We are concerned it may not suit us because we would live so close to our neighbors, as well as under the community's rules. Do you think we should consider buying a condominium?
A. The answer to your question is yes.
First, remember that a condominium is not a type of housing but simply a form of ownership. Your choices include condominium flats, townhouses, single-family detached homes and even trailer parks. Typically condominium ownership means you own your "home" or "living space" the same as you would a traditional single‑family home and you own all the common elements 'together" with the other owners. The common elements differ from community to community and sometimes you do own some yard area as part of your “unit”. Generally common elements include the exterior walls, the roof, parking lot, grounds and any recreational facilities.
Three categories of buyers often find condominium living attractive: the first‑time homebuyer, the young professional and the move‑down buyer.
For first‑time buyers, a condominium is often the most affordable housing available. It offers them a chance to share in recreational facilities they might not be able to otherwise afford.
For young professionals, a condominium is often an excellent investment and offers freedom from maintenance responsibilities. Many buyers continue to own their units after buying a larger home to accommodate a family.
For move‑down buyers, a condominium boosts their sense of security and significantly reduces their maintenance responsibilities because, in most cases, the association maintains the exterior of the building and the common areas. Move-down buyers may also want to consider age restricted communities which often have amenities which are geared towards older persons. At least one of the buyers must be 55 or older to purchase an age restricted condominium.
Remember, though, condominium living is not free of responsibility, the board of directors runs the community and is composed of owners – it has many responsibilities. Though someone else might cut the grass or paint the buildings, residents will need to pay assessments on time. Owners should also attend the condominium association's annual meetings and volunteer to serve on a committee or the Board of Directors. Active participants in a condominium community help protect and enhance its property values.
To find the right condominium, buyers should:
· Visit the community at several different times of the day and week. Not every person fits every community. A retired couple may not want to move into a community full of young singles, for instance. Dog owners need to consider the size of the unit and the availability of space to walk the dog.
· Review the condominium's documents. Buyers should read the disclosure package they receive when they sign a contract to purchase a unit. If you are purchasing new construction, you have 10 days to review the documents and if you are purchasing a resale unit, you have 3 days to review the documents (or more if your contract so states). Use that time period to make sure you understand the condominium documents. Questions should be directed to the sales agent or an attorney. Buyers need to make sure they can live with the condominium's rules and regulations. Again, the owner of a large dog may find that the documents restrict the size and number of pets allowed. Many associations also have restrictions on the ability to lease units. If you are considering an age restricted community, you will want to pay close attention to occupancy restrictions.
· Review the budget and financial status of the association. Buyers should make sure the association is financially healthy. This includes having enough cash on hand to fund long‑term replacement reserves.
· Look closely at the maintenance responsibilities in terms of division between unit owners (those items you would be responsible for) and the association
Here are a few other advantages of condominium ownership:
· Recreational facilities, including pools and clubhouses, exist in many communities. Most owners could not afford to spend $20,000 to put a pool in the back yard, not to mention the hundreds of dollars a year in upkeep. With a condominium, owners typically have that benefit for around $50 a month per unit, depending on the size of the community.
· Professionally maintained grounds would cost the average single‑family homeowner $100 or more a month. For the typical condominium owner, the monthly cost is usually much less.
· Shared expenses for insurance, maintenance and major replacements help reduce the overall cost of home ownership. The yearly savings in these areas run from a few hundred dollars to thousands of dollars, as in the case of a major repair. The cost of replacing the roof on a typical home, for instance, is between $3,000 and $7,000. With a condominium, owners pay a few dollars a month into a reserve fund, which is used to replace the roof when needed.
· Uniform standards for residents' conduct give owners a reasonable expectation of peace and quiet. When there is a problem, it can often be resolved quickly and quietly.
These examples are among the many factors that have encouraged more than 500,000 families in the United States to buy a condominium in the last few years. Condominiums come in every shape, size and price. With a little effort, any buyer can find the right home in a condominium community.