What Is A Condominium

What is a condominium?
A condominium, often shortened to simply “condo,” is a privately owned

individual unit within a community of other units. In general, the owner
usually owns the interior of their condo and the structural components of
exterior walls. Condo owners jointly own shared common areas within the
community, such as pools, garages, elevators and outside hallways and
gyms, to name a few. While some condos are found in high-rise buildings,
detached condos can be found in some markets.
Pros
 Lower-maintenance living: Since most, if not all, exterior

maintenance on condos is handled by the HOA, living in a condo
means no shoveling snow, no raking leaves and no mowing the lawn.
 Sense of security: Some condo communities have security staff,
and the entrances are more difficult to access from the outside than
single-family homes or townhomes. Some have secure entrances
and parking, a doorman or concierge and other amenities that
increase security and safety. This can also be a perk if you work odd
hours or travel frequently. “Many single people do not like living
alone, and condo living makes them feel safer,” Leonard says.
 Socializing opportunities: Many HOAs organize social events like
pool parties, barbecues and doggy playdates. In addition, because
you see your neighbors in passing, you’re more likely than not to
meet them in person. “Condos are a great place to meet people,”
says Leonard.
 Affordability: Because condos tend to be more compact and require
less land than single-family homes, they can be a more affordable
way to own property. Property taxes tend to be lower as well. For
some first-time buyers, condos make ideal starter homes precisely
because they don’t have the upkeep and maintenance of a detached
home, but you can still reap the benefits of ownership and building
equity.
 Amenities: Depending on the condo community, you may have
access to top-notch amenities like a barbecue area, business center,
swimming pool, dog park, covered parking, clubhouse and more —
and the cost of enjoying these perks is shared among all residents.
Cons
 HOA rules: One of the biggest complaints about living in a condo

community is that HOA rules can be restrictive, providing mandatory
guidance on everything from trash pickup and noise to what types of
items may be stored on your patio and how many pets you can have.
If you fail to follow HOA rules, you might have to pay a penalty, too.
 Investment risk: Your condo’s value hinges on all the others in the
community also maintaining their value. Real estate is all
about comps, and if one of the comps in your building is undervalued,
yours could be next. “Condos can be a riskier investment because
you are sharing ownership with other people in the building,” Leonard
says. “If one person forecloses or short-sells their condo, it can take
a toll on your value.”
 Higher interest rates: Since condos come with the potential for
issues from other owners, lenders tend to charge slightly higher rates
for loans to buy one to compensate for that elevated risk.
 Lack of privacy: Condos share common areas, so you’re going to
have to regularly interact with your neighbors. You’ll also likely hear
them. If your upstairs neighbor wakes up early for work, those
footsteps might drag you out of bed, too.
 Limited outdoor space: Condos usually maximize real estate by
building up, which often means there is limited outdoor or green
space.
 Rising HOA fees: HOA fees generally go up over time to address
maintenance costs and any added amenities. It’s important to factor
the cost of HOA fees into your homebuying budget, especially in
more expensive housing markets.
 Special assessments: In addition to regular monthly fees, condo
associations can enact special assessments on all homeowners for
unexpected expenses, or even for new amenities. For example, if the
roof needs to be repaired, you might have an unexpected bill to
cover.
 Restrictive rental policies: When you buy into a shared building or
community, you commit to following the rules, which might prohibit
how many units can be rented at any given time. Additionally, do your
research on whether the association will allow any units to be listed
on short-term sites like Airbnb. Some aim to limit the opportunity for
strangers to check in every night.
 skyscraper, a very tall multistoried building. The name first came into use
during the 1880s, shortly after the first skyscrapers were built, in the United
States. The development of skyscrapers came as a result of the coincidence of
several technological and social developments. The term skyscraper originally
applied to buildings of 10 to 20 stories, but by the late 20th century the term
was used to describe high-rise buildings of unusual height, generally greater
than 40 or 50 stories.
 The increase in urban commerce in the United States in the second half of the
19th century augmented the need for city business space, and the installation
of the first safe passenger elevator (in the Haughwout Department Store, New
York City) in 1857 made practical the erection of buildings more than four or
five stories tall. Although the earliest skyscrapers rested on extremely
thick masonry walls at the ground level, architects soon turned to the use of a
cast-iron and wrought-iron framework to support the weight of the upper
floors, allowing for more floor space on the lower stories. James
Bogardus built the Cast Iron Building (1848, New York City) with a rigid
frame of iron providing the main support for upper-floor and roof loads.
https://www.bankrate.com/real-estate/what-is-a-condo/#:~:text=A%20condominium%2C%20often
%20shortened%20to,structural%20components%20of%20exterior%20walls.

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What is a condominium?

A condominium, often shortened to simply “condo,” is a privately owned

 Lower-maintenance living: Since most, if not all, exterior

 HOA rules: One of the biggest complaints about living in a condo

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