In the St. Louis Metropolitan Area, condos are a wonderful housing option. Typically located in desirable places, with minimal upkeep, and a lower price than single-family houses, it’s understandable why young buyers consider condos appealing. However, they do come with various challenges. Ask these questions prior to deciding to purchase a condo.
Do you want to pay the condo fees?
Condos individually-owned units which share common walls, landscaping, and driveways. To maintain these common areas, condo owners pay a regular monthly fee for regular and emergency maintenance consisting of mowing, snow plowing, exterior painting, and roofing repair work.
While freedom from yard work can be a great benefit, condo fees, which can be several hundred dollars a month, will be a big part of your budget. Plus, the majority of condo associations only take care of the condo from the walls out. You still have to pay to replace the HVAC unit if it goes out.
Will you be able to afford a special assessment?
The monthly fees that a condo owner pays will cover regular maintenance and goes into a reserve fund for small emergency repairs. But the condo associations might also assess special fees for unforeseen costs or to finance a major improvement to the condo development like repaving of parking lots or residing of the buildings.
While ideally an additional few hundred dollars assessed once or twice a year won’t throw off your whole budget, you should be prepared for varying or increased condo fees if you purchase a condo.
Are you good with the condo rules?
Every condo will have Home Owner Association rules. Some of those rules may provide condo owners with the same liberties of owning a detached house. Other associations’ rules can be limiting or even strange. Every association in the St. Louis region will be different, but examples of rules you may run across include: no dogs or other pets, no window A/C units, no children, a limit on how many or who can live in the condo with you, or no flags or outside decors.
Before buying a condo, make sure to thoroughly read all of the condo documents, including the association rules. Associations can sue over violations of the rules. If you feel this might be more limiting to your way of life than you want, condos might not be what you are looking for.
Will the condo lifestyle fit your way of life?
Condos are ideal for homeowners, singles and couples, who are busy and want to spend less time and energy on maintenance. For those who want their own yard or want the ability to drastically remodel their home, a condo will not be right for them. Think about how you like to live, now and in the future, to ensure a condo is right for you.
Is investing in a condo the right financial investment?
Young home-buyers can easily find condos that are considerably smaller and more cost effective than even the smallest single family homes. A little condo can be a budget-friendly method to get out of leasing and start accruing equity in your home, but it has to be the right condo.
The report that condos do not appreciate as fast as single-family homes is false; according to the National Association of Realtors condos have consistently outpaced single-family homes in appreciation. But, unlike houses, a condo’s value is closely linked to the association fee.
Newer condos require less upkeep and might have lower fees, however those fees will go up as the units age. If you pick wisely, a condo might just be your perfect first home, and a good financial investment, too. Your St. Louis area real estate agent can help you find that perfect condo for you.