pros and cons of buying a condo - Posted by anthony J Diefenbach

Posted by Sean on December 22, 2004 at 20:58:58:

And the Bylaws can be changed… other folks have a say in your property, this is never a good place to be.

pros and cons of buying a condo - Posted by anthony J Diefenbach

Posted by anthony J Diefenbach on December 20, 2004 at 21:07:17:

I am thinking of buying a condo as my first investment. I would live in the condo. I am just curious of someof the typicall pitfalls that come with the purchase. Thanks in advance

Re: pros and cons of buying a condo - Posted by RichV(FL)

Posted by RichV(FL) on December 21, 2004 at 18:17:13:

Anthony,

I have bought and sold some condos here in Florida and have done well with them.

The others have made great points about the pros and cons. But let me leave you with one big con. “Special assessments”. They can eat into your cash flow as a landlord and as an owner living in the unit you may have to take extra out of your pocket that you did not anticipate.

My advice would be look over your condo docs with a fine tooth comb before jumping in. If all is in good shape and the condo is run well it could be a nice little investment for you.

Great Success,

RichV(FL)

Re: pros and cons of buying a condo - Posted by Devon

Posted by Devon on December 21, 2004 at 09:49:07:

Personally, I think the biggest downside to condo’s (from a mortgage broker point of view) is the condo fee. I am not sure where you live, but in my area (D.C. metro area) condo fees can range anywhere from $300-$2000/month. In turn, you may not be able to qualify for the condo that you may want.

Re: pros and cons of buying a condo - Posted by Sean

Posted by Sean on December 21, 2004 at 09:03:04:

Biggest con of a condo… someone else has control over your property. The condo board dictates what is or is not allowed… they may allow renters today, but next month they may not.

Re: pros and cons of buying a condo - Posted by David Krulac

Posted by David Krulac on December 20, 2004 at 22:39:23:

pro:

  1. usually cheaper to buy than SFH
  2. usually exterior maintenance is included
  3. often has other amenities like pool, tennis courts, fitness club, clubhouse etc.
  4. usually newer and modern.

con:

  1. beware condos where there are no many renters versus owner occupants. more than 20-25% is a problem.

  2. some condos prohibit renting which could limit your future plans.

  3. condo association fees can be high, sometimes condos are run by inefficent amateurs.

  4. sometimes condos are autocratic and dicatorial, telling you what colors are acceptable, what type of door, windows and lights as well as rules for landscaping.

  5. you’re paying for the amenities and exterior maintenance whether you use or not.

agreed - Posted by David Krulac

Posted by David Krulac on December 22, 2004 at 14:40:26:

I got caught on many special assessments for snow removal (one winter there was a bunch of heavy snows and they exceeded their budget), roof, siding, parking lot paving and exterior maintenance. I’ve paid “Special” assesment on all those.

Re: pros and cons of buying a condo - Posted by TomC (Md)

Posted by TomC (Md) on December 21, 2004 at 13:35:24:

I agree, especially when you consider that condo fees are not tax deductible like mortgage interest when you are an owner-occupant.

They are deductible for rental condos.

TomC

Re: pros and cons of buying a condo - Posted by Dave T

Posted by Dave T on December 22, 2004 at 09:35:23:

Actually, it is the condo association bylaws that dictate what is or is not allowed. The association board only manages the business of the association to include enforcement of the bylaws.