Condominiums vs. Apartments? A closer look at these attractive housing options

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From an outward appearance, it can be hard to tell the difference between an apartment and a condo. As such, when looking for a home, you might be considering either living in a condo or an apartment. These two housing units are distinguished by their mode of ownership and how they are managed. Before looking at the striking differences between these homes, here is a close description of what they are.

What is a condo?swdxaqsDcASD

Also known as a condominium, condos are shared properties where different owners own each housing unit. As such, it can be an office building or an apartment provided the houses are sold to different buyers. Individual owners jointly own all amenities in these properties. However, the usage of these amenities and anything done on the building is defined by the association’s rules.

What is an apartment?

Structural wise, an apartment is more or less same as a condo. However, a single person or company owns the building. Persons living here are known as tenants. Unlike condos, living in an apartment does not come with extra benefits. Moreover, since they do not have a homeowners association, people living there do not make monthly contributions.

Striking differences between condos and apartments

Costs

When it comes to cost, the cost of buying or living in a condo is higher than renting an apartment. Residing in an apartment only requires you to pay a deposit and your monthly rent. However, with condos, you are not a tenant but an owner, which comes with self-gratification.

Capital gains

One significant difference between owning a condo and renting an apartment you enjoy the increasing market values on property. Moreover, you can always sell or rent your condo. With apartments, you can not enjoy this benefits considering that the space you are living in has only been rented to you.

Maintenance

asdasdsDZvcSADOwning a condo comes with some responsibility. In this regard, it comes as some form of a fee paid to the homeowners association to cater for the maintenance of the property. When it comes to an apartment, you also pay some maintenance fee, which is often included in the rent the tenant pays.

There are many other differences between these housing units. In case you prefer in living in a carefree house, an apartment is probably a good choice. If you want a profitable real estate investment, then Condo buildings around Yonge and Sheppard might be what you have been looking for.

Factors To Consider When Purchasing A Condo

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Condo attracts huge sales in big cities, thanks to benefits such as low maintenance and easy-going lifestyle. It is evident that housing and real estate costs are at towering amounts across the world. This makes a condo a cheap way of making your way into the competitive market, especially as a young person. For consumers looking to purchase a condominium, a number of variables are to be considered. Many of these differ from those to be considered when looking for a home and are only uniquely tied to purchase of condominiums.

Condo buying tips

Go through the condominium laws and declaratghftyei564yfhjfuyfjgfions

These documents contain a detailed description of modules available, a list of property elements, and votes in exact numbers required by the condos’ board members to pass rules governing the place e.g. details on lease arrangements and the period they refrain from being legal again. By-laws are supposed to clearly define rules governing how the ground is supposed to be maintained and collection of association fees. Check the language used to write the documents to aid in making an informed decision.

Review board members information and their backgrounds

This is usually a small unit of elect people responsible for administration and declaration of by-laws while ensuring they do not conflict with stipulated legal statutes. Learn everything and be curious about their track record based on the time they have spent on the board. This prepares you to know if some schemes are just a scam and are fraudulent.

Study financial reports

Check whether the association provides an annual overview of net income procured as well as an outline of all expenses, are they issued out monthly? These reports will provide insight on how the association plans and uses a budget and whether reserve funds are available and more importantly adequate. Take a look at discrepancies on past balance sheets, most recent ones and the current operational budget.

Inquire if there are anticipated high-value maintenance items

If the board plans or still has a pending fat cheque project, be careful enough to ask if the expense is catered for by a reserve fund or through other means. This will help in setting right your expectations on common projects that could affect your living situation in the projected future.

Cost of the unit purchased

ghfdtyr4u6yrgffgjfmhDo not allow yourself to be surprised by a rise in association fee if you did not inquire on entry if the current amount was projected to be raised after a period. This information is important since then you will know if that particular condo unit fits right into a comfortable budget on ownership.

Insurance

Imagine an unprecedented calamity striking and most of your particulars are damaged, what next? Say the association doesn’t cover for the wind, fire or liability insurance? It is, therefore, important to go through policies covered by the association so that you as an owner can prepare or budget to cover for the remaining policies. The bottom line is you should not be afraid to ask any questions, be proactive while making a decision before purchase.