A condo is a short form of a Condominium residence. Buying a Condo is different from buying a house. There are some restrictions and regulations when it comes to condominiums. You may have heard that some people have mortgage issues when they apply for Condo mortgages. Condo mortgages are different from others because they included a few extra steps in the process.
Mortgage problem:
Lenders are very specific about giving out mortgages for condominium residences. Building occupancy rate matters when you are looking for Condo mortgage. Lenders frequently have rules governing the occupancy rate of the building. Some lenders won’t grant any mortgage until at least 80% of the building is not sold out. Sometimes your mortgage will also depend on the location of the building.
Pros of investing in Condo
- A condo can be a good investment if you buy it at a prime location. If you buy one in the downtown area of the city, it can provide you with a higher rental income.
- You can use common amenities such as a gym, pool, barbecues etc. as everything will be included in your condo fees in most cases.
- You can participate in the condominium board of directors elections. You will have a voting right as the owner of a condo.
- A lot of new condos have smart features now, which means you can get more security
Cons of investing in a Condo
- Maintenance fees are going high.
- Exterior maintenance is not under your control, as it will be the condo corporation’s responsibility.
- You will have a limited and smaller space compared to a house.
- There are some pet policies and rules that you will have to follow to keep the environment comfortable for other owners.
- It can be stressful for your big dog to live in a small condo.
- Some condos are semi soundproof, and you will not get full privacy.
- You may be afraid to lose your delivery parcel, or a delivery person can easily misplace it in Condo buildings.