The Simple Fact about a Condominium

by Dori Tery on March 26, 2013

The Simple Fact about a Condominium

A condominium, condo, is a type of apartment or apartment complex that allows for individual ownership of the dwelling units but joint ownership of the land, common areas, and facilities, including swimming pools, tennis courts, health facilities, parking lots, and grounds.  In effect, you pay for and own your apartment, and you have a proportionate share of the land and common areas. As with a cooperative, you still have to pay a maintenance fee, which generally covers interest, taxes, grounds keeping, water, and utilities.

The form that condominiums take can vary greatly – from apartment buildings or townhouses to office buildings or high-rises on the oceanfront. The advantages and disadvantages of living a condo are similar to those of living in cooperatives. However, condos allow for the direct ownership of a specific unit, not just shares in a corporation.

A more recent variation on cooperative and condominiums are planned unit developments, PUDs. These enjoy most of their popularity on the West Coast. With a planned unit development, you own your own home and the land it sits on, but you share ownership of the development with your neighbours and pay a home owner’s fee for common expenses and maintenance.

Others common type of housing option

These types of housing appeal to those who are interested in an affordable, low-maintenance situation with little financial commitment, from which it is possible to move with minimum inconvenience. This description often fits young, single people, since when they start out they may not have the funds available to buy home, or may not yet be committed to a geographical area. For others, rental housing may simply be a lifestyle decision. You may want limited upkeep and no long-term commitment, or you may want to be free to change to jobs that may take you away from the area. Most of us, at some point, live in rental housing. The downside of apartment life generally involves a lack f choice. For example, you may not be allowed to have a pet, or you may have limited ability to remodel the apartment to fit your taste.

simple fact about condominiumHow to decide your dream home? According to the testimony of United States Federal Reserve Chairman Ben Bernanke, in May 2007, the number of families who held a subprime mortgage was 7.2million. Subprime mortgage made up 14 percent of all home loans outstanding. And, the percent of subprime mortgages in default was 14.44 percent. One year later that rate was 25 percent.  No worry, you only need 2 steps to help you make the right decision when buying your home.



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