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Real Estate Questions Answered.......................................................... .......................................................... The Pros And Cons Of Owning A CondoDear Natasha, My husband and I have been looking into buying a condominium, as we are attracted to its lower cost, compared to a single-family home... What are the pros and cons in owning a condo? Sincerely, Dear Condominium Living Fans, Condominium ownership has become increasingly popular over the last decade. Condos are attractive to buyers for their comparatively lower cost and, thus, financial risk, low maintenance, extra amenities and convenient locations. Condo prices have risen 23% since 1996, increasing in value making the condo and townhouse market one of the fastest moving sectors in real estate. Here’s the question you must ask yourself before purchasing a condo – is the condominium lifestyle right for me? Although you do own property when buying a condo, you don’t necessarily own land. When you own a condominium you own everything within the walls of your unit. All the areas and facilities outside of your condo are owned by a homeowner’s association, comprised of all the owners of condo units in the complex. You’ll need to find out what monthly association fees cover regular maintenance, landscaping, security and miscellaneous costs and what extra fees you might be charged for special improvements and larger repairs. Condominiums may offer services and recreational facilities such as parking valets, tennis courts, swimming pools, exercise rooms and elaborate landscaping. The cost of these features may increase your monthly costs. It is very important that you study the condominium documents carefully, well in advance of the closing date, to make sure that every detail fits with your lifestyle. Please contact me directly for professional advice that will help you make the right choice to fit your needs. Regards, [ top ] .......................................................... Is Duplex A Wise Choice As A First Home?Dear Natasha, In the last couple of weeks, I’ve been browsing the Internet trying to find a duplex for sale in my town. I like the idea of living in one of the units and getting some rental income for the other one, however, as a first-time home buyer, I am precautious of the bigger financial commitment that comes with it… Is duplex a wise choice as a first home? Very truly yours, Dear Mike, Many first-time homebuyers consider duplexes because they can rent out half and put the rental income from the other side toward the mortgage payment. In some cases, the lender may even calculate some of the projected rent into the borrower’s qualifying income, thus making him or her eligible for a bigger loan. The duplex can become part of the buyer’s investment portfolio, and living in one half of home makes it easier to handle the responsibilities of being a landlord and also secure the best interest rate – one that is on par with that of a single-family house. However, these properties do cost more than single-family residences. Also, duplex buyers must pay for all necessary repairs; and they might find it difficult to fit maintenance and other tasks associated with rental units into their busy schedules. Difficult tenants and vacancies are other problems duplex buyers may encounter. The very first property that I bought was a 6-family house in Waterbury, Connecticut. I still own it and I love it (actually, it’s the money that I love). After I deduct my operating expenses (taxes, insurance, repairs, water, etc.) from my rental income, it brings me $23,000 a year before debt. Because the property was relatively inexpensive, my monthly mortgage payments are $900/month, leaving me with $12,000 of cash flow every year or 24% on my cash. Was I afraid of the financial commitment? Sure! Do I have vacancies? Of course! Do the tenants call me all the time with their complaints? I have somebody to take their calls and manage the property. So the answer is “Do it if you want to deal with it!” It’s not just a home, it’s the best investment that exists. Regards, ..........................................................
For solid advice on selling and buying, [ top ] |
Natasha Cohen
199 Post Rd East
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