Many people choose to purchase condominiums instead of single family homes, and there is nothing wrong with that. Many development firms and builders have invested millions of dollars in condominiums, and they have done so because there is demand for it in our society. Tons of people choose to purchase condominiums as they are easy to move into and out of. There are far less costs involved in maintaining a unit as opposed to a home. However, if you are planning on buying a condominium, there are a few things you should be aware of.
Whether you agree or not, condominiums are expensive when compared to buying a home. The amount of money you pay towards a condo is much more when you think about what you are getting. Most people prefer to leave in a smaller area, than a whole house, which takes a ton of effort to maintain. In terms of finances, a condominium will still be able to hold your investment. If you compare it to renting a unit, purchasing a condo is not a bad idea at all. Your initial down payment will remain, and the amount of money you pay towards the principle loan is all yours at the time of sale.
There are several perks when living in a condominium. The building is maintained by the development firm or company. Garbage collection in the building, cleaning in the building and lighting in the building is all controlled by the firm. You simply have to pay a slight fee on a monthly basis for maintenance. Condominiums tend to be a lot safer than other types of residential properties. The building usually has a watcher at the lobby that monitors all activity in the building, including all cars coming in and around the lot. There are numerous cameras in the building which would help if an incident does occur. Each of the rooms in the building has a washer and dryer, something you don’t usually see with rental properties.
The major disadvantage about buying a condominium is the risk in depreciation. Many people tend to purchase condo’s since the investment is not so high, but then they realize that they can’t pay for it any longer. Once they default on a few payments, the bank will file for foreclosure. If you own a condominium in a building with a few other foreclosed units, it will affect your condo’s evaluation. Buildings with many foreclosed units will have a high rate of depreciation, and this could affect you very badly in terms of your financial stability.
So, when you are purchasing a Hawaii Kai condominium, you need to do some research as it is now very crucial. Hiring a real estate broker to help you with the process would be an excellent start. Realtors have the background knowledge and experience, so they know which buildings have the most foreclosures. At the time of buying the condominium, think about whether you will be selling it in the short term. Do you think this unit would be snatched up by potential buyers? The small things you don’t consider can end up making the big difference.