What Is a Condo?
Living in a condominium is fairly similar to living in a luxury hotel or apartment. You get to share a series of amenities, be a true homeowner and at the same time enjoy the luxury of living in the city. One of the distinct characteristics of a condominium is the fact that in purchasing a condo, you acquire common area features with your other neighbors. Most condominium developers go to great extents to provide features and amenities usually not available in a single family dwelling.
A condominium physically resembles how an apartment or hotel looks like. However, the major difference is that you own your condo. You purchase a condominium in a very similar process to purchasing a standard single family home. The big difference in owning a condo and a single family home is that you will pay a condo fee, which covers maintenance and upkeep to all of the common areas. That means that you don’t personally pay for cutting the grass or upkeep to your pool, that is paid for by the condominium organization with all of the condo fees taken in by all of the owners. Condos are generally financed and amortized very similar to standard homes. Insurance varies too. For instance, with owning a condo, you pay for H-6 insurance which covers only from the sheet rock in of your unit. All of the exterior and common features of your condo are insured by the condo association. In some instances, if a large upgrade or repair is needed, a special assessment may be assessed to all homeowners of the condo complex.
Condominiums, particularly the luxurious ones may sit in the heart of the city or in a holiday destination area. All condominiums are packed with luxury hotel-grade amenities, proper maintenance, and 24/7 security perks. Every condominium has different policies, terms, and pricing.
Luxury Condominiums are not just about their location. Specific aspects like personal work out centers, pools, meeting areas, waterfront living, VIP security, and high-grade amenities are all parts. In some of the most luxurious condo’s, such as Lakeshore LA, you may even get your own private beach.
Condo’s as an Investment
Just like in every real estate variety, a good return of investment in Condominiums will never be a guarantee. The winning catch of owning a condominium though, is the method of having it leased. Regardless of unstable interest rates, you can still securely profit from it.
In every real estate division, whether you are an investor or a developer, the location will always be a big item to consider. Location plays a big role in any real estate value. It can make or break the business’s asset if the location is not very favorable to its target market.
As a condominium buyer or investor, finding a perfect location should be number one on your “perfect condo check-list”. Finding the perfect location for your condo unit is the same as finding the shoe that perfectly fits. That regardless of how trendy, or expensive the shoe is, you still look for comfort and its ergonomics.
Location, Location, Location
Since Condominiums are usually established in the city’s business center or popular tourist-prone area, you need to think about the environment that you are willing to adopt. Some buy condo units for the investment, some buy it as end-users or buyers who really lives in them. Nevertheless, there are still two things that need to be considered prior to pursuing business:
If you decide to live in the unit you bought, then consider the lifestyle, work office location, the establishments around, and the safety of the area. You might also want to consider the transportation within the area. It also doesn’t hurt if you check the traffic condition within the place.
However, if you decide on putting up your unit on a rental program, then examine the flow of non-local residents as short term rentals may be an option. Is it positioned in an area where tourists normally stay? If it’s in a business part of the state, then think about the surrounding offices and the prospective employees that would consider renting.
Just like other business, you need to talk to the right people to walk you safely through the transaction. With real estate or condominiums in particular, there are professionals who can help you instate your inclination towards owning your own condo unit. Many real estate brokers specialize in condos and work with developers on converting an existing apartment complex into a condo complex. In these types of condo conversions, you can potentially acquire a new unit even before its fully ready to move in. These instances are similar to getting in on the ground floor and rely on once the condo is at full occupancy, the pricing will go up.
The Ups and Downs of Condos
The real estate market, particularly with Condominiums, were greatly affected by the recession that lasted for more than 3 years. Similar to standard homes, condominium prices skyrocketed and became more of a liability than an asset when it comes to equity. Prospect buyers became apartment renters and Condo unit owners became landlords.
But when 2012 came, the game drastically changed for the condominium business. The Condo Premium Price normalized and continuously displayed a good recovery in the real estate market. This is good news not just for condominium developers, but also for condominium end users and investors.
Right now, even pre-constructed luxury condominiums are almost pre-sold out. Real estate market analysts have prospected that condominiums will once again become the prime option for real estate investors for the coming years.
The crucial part of investing in a condominium unit is knowing if this is the right one. If you are the investor type, you need to consider the most important aspect which is the location. If you draw out a map, a perfect condominium unit location must be close to hospitals, schools and the business district. These three factors contribute a lot to the investment you are about to pour your money in.
However, if you are an end user or someone who settles in their own unit, personal preferences play a big role in finding the perfect condominium unit. One of the aspects to consider would be the condition of the building. If a condominium is in poor condition, you may be looking at special assessments for major repairs in the near future.
In general, finding the right condominium falls heavily under location and luxury amenities offered. What comes in secondary would be the physical attributes of the building and personal preference.
Purchasing a Condo
Whether you are a young professional, a mature adult, a retiree or an international investor; investing in something requires patience, trust, and belief. Though statistics shows that the real estate market, particularly the condominium market, have proved to continuously become a safe haven for investors, everything will always be of less guarantee and more on the gut.
Condominiums nowadays are very high in demand. In this generation, investing in a condominium has climbed up to the necessity ladder. Each year, more people are enticed to invest in a condominium unit. Soon enough, the condominium lifestyle will be embraced by everyone.