Buying a condo is often preferred over buying a house these days because it helps you to avoid certain responsibilities like maintaining your house. When you buy a condo, you generally get all the amenities within the condo, and hence that helps you to avoid looking for these amenities elsewhere.
While it might seem that not undertaking maintenance responsibilities might reduce your costs, there might be a number of hidden costs associated with buying a condo. These costs are mostly neglected by the owners or are not considered when they plan to buy a condo. Here are some of the hidden costs of buying a condo.
The amenities that your condo would provide are important to consider. Amenities are one of the primary reasons why people prefer a condo these days. You need not go to a gym outside your premises or register yourself for different activities when you stay in a condo. However, these are not free!
Condos generally provide a range of amenities like a well-equipped gym, a swimming pool, a clubhouse, guest houses, and much more. When you buy a condo, you must check if these amenities match your taste so that you can spend a peaceful time indulging in activities you like after a hectic day!
While you look for the amenities you should also match them with the price of the condo. The price of the condos generally rises with increased amenities. However, you should weigh your interests satisfied through these amenities against the price of the condo to check if it would be an intelligent buy! Remember, there is a charge that you need to pay for availing of these amenities which are not included in the price of the condo. Don’t forget to add these charges while you calculate the cost of the condo.
Rules and regulations
Living in a condo often comes with a number of restrictions, unlike owning your own house. There might be restrictions on owning pets, installing new electronic devices or renovating your condo without permission. Furthermore, taming animals might have an additional charge which is generally hidden.
You would not know the amount that you need to pay if you bring a doggo to your condo. It is often believed that pets might ruin the beauty of properties and thus the authorities have to take greater care towards maintaining it. Hence, the additional cost comes into play.
Though most condos ensure top-notch security, this is something that you should essentially consider before buying a condo. Are the guests visiting the condo checked properly? Does it have 24*7 security? However, security does not only mean having posted a guard at the gate. It also involves checking if the condo provides you sufficient privacy and has security options for its residents. Security options might include having separate letter boxes, locker rooms, and other features.
Availability of these services come with a cost that might not be disclosed at the time of buying a condo. These charges depend on the nature of security services provided by your condo and might be taken in advance or as and when you avail them.
Most fail to consider the expenses involved in shifting from one house to another. This would include shifting all your furniture and important belongings so that you can live in your new condo comfortably. Most condos provide you with the service of shifting your belongings from your previous house. Thus, you do not have to look for packers and movers to help you with that.
However, do not forget to calculate the cost involved in shifting as most condos charge a considerable amount in return for this service. You might have forgotten to add this cost to the price that you pay for your condo but in reality, this increases the total cost of your condo.
One of the most popular reasons for buying a condo is to avoid the responsibility of maintenance which is generally done by a specific association. These might be the homeowners’ association or the property owners’ association. They ensure that your broken windows are replaced and pipe leakages are mended and do not require you to worry about the same.
As interesting as this looks, every time you avail such a service, you need to pay a fee for the same. The fees for maintenance of your condo might be charged on a monthly or a quarterly basis and the service charges are deducted from the same. In case the service required exceeds the allowed limit, you might be charged extra too!
Remember, you can always replace or solve minor issues but you should get your condo insured in order to avoid a massive financial loss. Suppose your house is on fire and most of your belongings are destroyed. Condo insurance helps you to recover your loss. In order to receive adequate financial coverage, you have to pay a premium based on the kind of policy that you have chosen. There are a number of insurance policies available and the amount of financial coverage provided depends on the nature of the insurance. Sounds interesting?
Costs involved in getting condo insurance are often not considered by most condo buyers. However, remember insuring your condo is one of the most important things that you should do as an owner and you need to pay the premium as required by the policy.
You need to consider a number of hidden costs while you plan to buy a condo and calculate your budget. In case you fail to identify these costs, the total price of your condo might exceed your budget in the long run. Therefore, it is always suggested that you consider all these factors and plan your budget accordingly.
It is always better to have a reserve fund while you plan your budget as it helps you to meet any deficit in the long run.