If you are seeking a carefree lifestyle but want to own your own slice of the beach, condo living might be a perfect choice. Of primary concern are the costs associated with condominiums. While they often cost less per square foot than a single-family residence, the mortgage payment is not the only financial concern to know about. Read on to find out more about the costs that set condo living apart from other options.
Covenants, Conditions, and Restrictions (CCR)
Condominiums are not just a place to live – they are a lifestyle choice. Almost every aspect of living in a condo is governed by the CCR. These documents are a must-read before you decide to make an offer. The CCR not only spells out the rules for residents but also contain important financial information about the condominium. Pay close attention to the operating budget, plans for updating the common areas, and what you can do within your own unit to make it your own. Not everyone is able to read and understand the complicated financial information in a CCR, so don't hesitate to have a real estate lawyer or your real estate agent interpret it for you. Buying a condo in a given location means you understand and agree to the CCR. If you plan to put your beachfront condo on the rental market to produce income for you, be sure to check the rules before you commit.
Understanding Extra Costs
Beyond the mortgage, property taxes, and homeowners' insurance costs, condo living usually requires extra fees. These fees may be known as owner's fees, association fees, community fees, or homeowners' association fees. They may be charged quarterly but are more likely to be due monthly. These fees are non-negotiable and they can go up over time if the association votes for the rate increase. The amount charged varies widely from less than one hundred dollars to over $500 a month or more and depends on the location and the amenities offered. These fees are meant to cover the following.
- Remodeling and upkeep of the outside of the building. Buildings in waterfront locations often need more maintenance due to the effects of the salt air.
- Upkeep of amenities like a pool, workout facilities, and more.
- Insurance to cover everything outside the interior of the condos.
To help you get started on your search for a beachfront condo, speak to a real estate agent today.