The older the property and the less cash reserves it has, the higher the chances you’ll be hit with these charges. The association will also have a reserve fund to cover expenses that crop up like major repairs. Without the right funds in place, associations can charge owners “special assessments” to cover costs. If an association refuses to share their budget with you, consider that a major red flag. Also take note of any outstanding debt owed to the association and if there are owners who aren’t paying their dues. It helps to look at the budget to make sure that they’re putting enough money towards thing like building repairs. That way you can know what kind of money you’ll need to contribute, as well as where the money is going. In addition to a condo’s rules, you should also be aware of the condo association’s budget. You should be well aware of those before you buy a condo and find you can’t live with their rules. Each condo complex will have their own rules and restrictions. This body puts rules in place to maintain the upkeep of both the building and neighbor relationships. Because of this, condos have their own homeowners associations. Purchasing a condo is like joining a business arrangement with all the other people who own condos in the building. They also offer conveniences that might be difficult to afford individually, like the maintenance of a pool. Condos can be a great option for potential homeowners who can’t quite afford a house but want to own some real estate. All the common areas, like tennis courts, lounges or pools, are collectively owned by all the complex’s residents.Ĭondos tend to be especially popular in spots with high property values, like big cities or popular vacation destinations. Unlike apartments, however, you own your private condo unit. They often look just like apartment buildings. Condos are individually sold units within a communal living complex. First off, it’s important to know exactly what a condo is.

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