Buying a condo in the middle of the city is a smart move, especially if you can afford to pay the mortgage each month. Most condos are on strategic locations meant for individuals who prefer to have a place to stay in the middle of the suburban jungle.
But there are other expenses that you need to worry about aside from your monthly mortgage payments. When you’re thinking about purchasing a condo unit, it’s not only the asking price that you should consider. You should also consider the other charges, including the maintenance fees.
New York Daily News says that these fees can be expensive. In New York alone, the average maintenance fees are at around $1,500 per month. And unit owners need to pay this each month on top of their already high mortgage payments.
People often call it as standard charges which condo residents share. It includes the operating costs of running the building. On top of it, condo residents will also cover the property taxes, too.
Is buying a condo still worth it?
Condos are often more affordable than individual homes. Even more, it also offers access to specific amenities that you wouldn’t usually afford as a single homeowner. Some of these amenities include fitness gyms, tennis courts and swimming pools.
Aside from its amenities, developers also aim to create a sense of community within its walls. That’s why Investopedia says that it’s normal for developers to build shared spaces for people to use. Since most condo developers place their projects in strategic locations, people can buy a luxury property at a lower price.
It means that they can get a piece of property from a high-end place that can provide them with a luxurious lifestyle at a fraction of a cost.
Look for any signs of future increase
Aside from the current standard charges, you should also observe the probable reasons that might affect the expenses for a unit. You can ask the seller or his broker about the possible reasons that can change the shared charges. It’s also advisable to get the information on the condo board’s projects that they have in mind.
Getting as much information as you can about the board’s activities is crucial for making a smart choice. Remember that aside from projects, condo boards also manage the shared services inside the building.
Since a few of its parts need replacement now and then, the board will call for an assessment to check if the budget is enough to cover the expense. If not, there’s a chance that the extra costs will get transferred to the owners over the next several months.
When you’re looking to buy a new home, it’s best to choose a building that’ll fit both your budget and your lifestyle. Remember that getting the best mortgage rate here in Utah is a serious financial move that you have to make.
So, it’s best to be smart about it by ensuring that you know everything about the property and its fees. Aside from mortgage prices, you also have to think about your everyday expenses, too.