In an apartment, all of the units are usually owned by a single person or company who rents out the units. Whoever owns the building or complex owns all of the common spaces, too.
With a condo, a homeowners association HOA or condo board elected by all of the owners manages all of the common spaces. Fees or dues are paid for things like landscaping, pool cleaning and maintaining the parking lot. Well, there are lots of reasons someone might want to buy a condo instead of, say, a single-family home in the suburbs.
Some of those reasons may include:. Downsizing: As you get older, you may find you need less space. So a condo is a great way to downsize. Goodbye, lawnmower! Less expensive: Condos can cost a lot less than a big single-family home on a huge lot. Great investment: Condos are also popular with investors. Second home: Do you take a vacation every summer to the same beach town?
If you have the cash to consider buying a second home or a vacation home, a condo in that area could be great option.
Some offer companionship to residents in a similar stage of life like retirees or singles and events where you get to know your neighbors. Here are some of them:. Some complexes have detailed contracts and covenants that tell you that your drapes must be the perfect shade of off-white, you better never put wind chimes on your patio, and do not let anyone catch you putting a wreath on your door at Christmas.
For example, there could be aesthetic requirements to adhere to, such as a mandate to install the same windows as every other unit.
Your finances will be the main deciding factor that answers this question. Renting a condo can also be a good opportunity to test out a particular building or area of town before making a long-term ownership commitment. Here are some top things to consider. How We Make Money. Jennifer Bradley Franklin. Written by. Jennifer Bradley Franklin is a multi-platform journalist and author, often covering finance, real estate and more.
Edited By Suzanne De Vita. Edited by. Suzanne De Vita. Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. Share this page. Key Principles We value your trust. What is a condominium? Read more From Jennifer Bradley.
You may also like What is a townhouse? Condo vs. What is a patio home? Apartments are suited for anyone looking to stay in a prime location for a cheaper price near shopping, restaurant and entertainment centers, often at a more affordable cost than buying a condo or single-family home. Condos appeal to those looking for a lower-maintenance living, home with a sense of security, opportunities to be social with neighbors, among other factors. Townhouses are a particularly good option or first-time homebuyers or other budget-minded home buyers who want more space than typically afforded in a condo.
Modular home. Modular homes are enticing to empty-nesters looking to downsize, couples looking for backyard units like tiny homes or families looking to upgrade their dated properties in nice but expensive neighborhoods. Single-family home. Single-family homes are best for families who prefer a huge yard and plenty of room to spread out. Select basic ads. Create a personalised ads profile. Select personalised ads.
Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. A condominium also called a "condo" is a large property complex comprised of individual units, and each unit is owned separately. Ownership usually includes a nonexclusive interest in certain " community property " controlled by the condominium management.
Condominium management is usually made up of a board of unit owners who oversees the daily operation of the complex, such as lawn maintenance and snow removal. Owning the air space of a unit in a multi-unit development is one description of a condo. As this description indicates, the condo owner's title to the property does not include the four walls that divide their unit from other units or common areas in the property.
The floor, ceiling, sidewalks, stairwells, and exterior areas are all part of the common ownership of the condo. One common type of condominium is a residential highrise that provides housing for several different families. However, the concept is not limited to high-rise buildings, nor is the concept limited to residential properties.
Residential townhouses are sometimes developed as condominiums, and the concept is also applied to commercial properties , such as office condominiums. Condos, like apartments, are great for residents who enjoy living in a shared community without the hassle of maintaining upkeep, such as lawn work and property management.
Condominium developers differ in the ways they provide parking spaces and garages to unit owners. In some developments, these spaces are reserved as limited common areas, and the condo association maintains ownership but gives exclusive rights for the unit owner to use the space or garage. In other developments, the unit owner buys the garage or parking space and has ownership. However, the covenants, conditions, and restrictions may still limit the owner's ability to sell or rent the space independent of the unit itself.
The big difference between a condo and an apartment is that you generally own a condo, while you rent an apartment. Apartment buildings are usually owned by a single owner such as a property management company and the buildings are used solely for rental purposes. However, condos that are rented out to tenants are sometimes referred to as apartments. Thus, the only notable difference between a condominium and an apartment is ownership. A condo is generally something you own, while an apartment is something you rent.
The declaration of covenants, conditions, and restrictions is a legal document that sets forth the regulations for owners of units in a condominium. This document defines the acceptable use of the unit. It describes the owner's use of limited common areas and general common areas. The declaration includes rules for selecting the board for the homeowners' association—the board that manages the development.
Unit owners pay fees to the condominium association. These fees generally include the cost of insuring the building, shared utilities, and a reserve of funds for future maintenance of the building.
The fees may also include the fees the association pays to a management company for the daily operation of the development. Condo fees are subject to increase, and if the building requires major maintenance, any costs that are not available in the reserve funds can be billed to the unit owners. Purchasing a home is considered one of the biggest investments a person will make in their lifetime. Although rewarding, it is important to understand the implications of purchasing real estate, especially a condo.
Condo living affords its owners several benefits, such as access to amenities that are ordinarily only accessible at a cost. Owners can enjoy the exclusive use of swimming pools, tennis courts, and fitness facilities at no extra cost. Some high-end condos even provide access to spas, rooftop entertainment spaces, and gardens.
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