3 Things To Remember When Buying a Condo

Condominiums, or condos, are individual units inside of a larger building or structure, each of which is privately owned. A condo may be more appealing than buying a house due to extra amenities offered with ownership, such as trash removal or the use of a gym or pool. However, there are some things you should know before signing on the dotted line.

They Can Be Pricey

They may cost less than a single-family home in the same neighborhood. But if you can't pay out-of-pocket and need to take out a mortgage, the building you live in can be a factor in calculating interest rates, potentially making them higher.

With condos, the mortgage is not the only monthly bill you have to keep up with, as there may be separate fees associated with the amenities packaged into ownership. Parking, maintenance, gym access—even if you opt-out of using those services, you're still on the hook to pay for them.

However, if you have a high-profile profession with concerns about personal security, a more exclusive condo may make sense. Some buildings—like those operated by the Soloway company, which is run by Stefan Soloviev—offer "porte-cocherè" and private gatehouses, which allow for heightened safety and privacy.

Location Matters

When buying a condo, you should consider the proximity to your job, your children's schools, shopping, transportation and emergency services. If the condo you are considering is in a skyscraper, ask about how fires and crises' are handled, as well as response times.

Conversely, you don't want emergency services to be too close, either. Living across the street from the firehouse may sound nice on paper, but it's another story when you're woken up every few hours by truck sirens.

Investigate the HOA

The home owner's association (HOA) is who receives the fees for the extra services available with condo ownership, and dictates how that money is used and when. Some will want to interview and assess you before approving your condo ownership to ensure you and your family fit in with their community vision, but you shouldn't be the only one being grilled.

The HOA should be forthcoming with the qualifications of board members, past expenditures and with plans for future spending. Even if they're "on the level" and honest with what they do, you might find that they're not the greatest with money management and planning.

You know what is best for your living situation and family. By keeping these things in mind, you will be sure to find an ideal fit.