Is It Wise To Buy A Condo Townhouse? Single Mom Looking To Take Advantage Of The Market?
Nοt sure whаt tο ԁο. Currently a renter, ɡοοԁ credit, 5% down payment within mу buying range available. Thinking οf taking advantage οf market аnԁ рυrсhаѕе a condo townhouse (ƖіttƖе maintenance). Hοw much ԁο condo fees increase yearly? Iѕ resale difficult іn a condo town house?
I think it’s a great idea if you can afford it. Condo fees do fluctuate, but not by astronomical amounts. In my city, condo fees tend to be between $185-400 on townhomes. Resale will have its good and bad points. Some people don’t like having condo fees, others like that they will save $ on the price of the home. There’s many things you can do to help with resale when that time comes: fresh neutral paint, updated fixtures ect.
There are pros and cons to condo ownership and you must do your homework. The pros are condos are generally cheaper than houses and the maintenance on the outside is done for you. Cons can be that they also appreciate in value slower and if there are not managed extremely well can be a money sink hole. Condo fees depend on a number of factors and can rise at whim–usually the condo board (made up of homeowners) manages this. A smart & savvy board can make good use of the $; a bad board burns through it. Another con is you must live with the rules & regulations of the association.
You need to look at how old the condos are, how much in reserve funds they have, how well run is the board. You should have a lawyer look over the annual reports & the CC & Rs. Talk to other owners & see how happy they are with things. Walk the association in the day & at night; look at the upkeep, lighting, etc. See who else lives there.
Condos do not need to be disasters–where I live there are condos in Century City that go for 10 to 17 MILLION dollars.
You just have to be careful and look at more things than just buying a house.
5% down will not be enough. Mortgage lenders want a credit history of 750 minimum, and 20% down. Condo Association fees increase yearly due to rise in property taxes, utilities, maintenance and salaries. There is also occasionally a surcharge sometimes in the thousands to to major emergency repairs or renovations. Resale is more dependent on Location and availability of housing in your area.