Buying a Condo in 2020: Top 5 Pros & Cons
by Dannea Moneva
Maybe you are taking your first step, if not delving further, into homeownership this 2020. Are you considering investing in rental properties? You might be wondering if condo units are still a good idea for home property investment in 2020.
A condo or a condominium unit is a part of a building community. Each unit is separately owned by different individuals who are either building residents or investors in real estate. Typically, condos share a wall separating each unit.
Why should you buy a condo?
1. They are less expensive
Condo units are frequently less expensive than houses and lots. Be sure to carefully review any condo association fees when considering cost; however, many condos are still less expensive when taking that into account.
2. They offer income potential
When you purchase a condo unit, you also get the opportunity to make it a source of income. You can rent it out for either short-term or long-term arrangements. This depends on the demand in your rental property's location. You can put up your unit on sites like Airbnb for even more opportunities between long-term tenants.
3. They require less maintenance
You are free from the stress of the upkeep needed for the building and its common areas. That is where your monthly condo fees come in; they cover the labor of the janitorial staff, along with any expenses for repairs or renovations for hallways, lobbies, entrances, parking spaces and more.
4. They are more secure
Living in a building with multiple other residents may help you feel at ease, and many buildings also provide on-site security staff.
5. They provide social opportunities
Living in a building with other individuals offers you a chance to socialize. Some HOAs of condo communities even organize social events for tenants, such as pool parties and barbecues.
Don't miss the chance to mingle and network with the residents around you. You might find your next big client or a new friend!
Concerns about buying a condo
1. They come with legal concerns
There are instances that your lenders will require you to stay and live in your condo for some time before you are able to rent it out, meaning that passive income will have to wait. They will also need to check over the building's homeowners association, which requires you to expend additional time and effort. This step is necessary to guarantee that the unit you are investing in is free from legal issues.
2. They come with fees and rules
HOA rules and fees are a major concern for many community members. These can be considered strict, as they regulate many aspects of the condo, such as what you can put in your patio or balcony and whether you can have a pet.
3. They don't always have parking
There are a lot of condo buildings that don't have enough space for parking, which can be a hassle for car owners. Make sure to ask about parking if you tend to buy groceries in bulk or are transporting furniture.
4. They can be risky
The financial issues of other condo owners may affect your dues - especially if the property goes into foreclosure. This is why that extra step of reviewing the health of the condo association is so necessary, and why there may be additional requirements for down payments for condos.
5. They have shared spaces
In a condo community, you will be sharing some common areas with everyone, such as the lobby, amenities, the hallways, and storage areas. If you're a private person who needs a lot of space, be sure to consider whether this will meet your needs.
About the Author
Dannea is a content developer and entrepreneur who runs a content writing business. She is fascinated with data, marketing, and web content writing.
What to Read Next
